New revenues THROUGH a service economy

Sell the service function of the product rather than the product itself.

1. Customer Needs Analysis:

- Understanding Perceived Value: Identifying specific customer needs and understanding how the product meets those needs as a service rather than a tangible good.

- Market Research: Conducting market research to identify customer segments that are ready to adopt a service-based model.

2. Developing the Service Offering:

- Defining the Service Function: Clarify the primary function the product performs and how this function can be offered as an ongoing service.

- Creating Pricing Models: Designing suitable pricing models, such as subscription, rental, or pay-as-you-go, to monetize the service function.

3. Adapting the Product:

- Designing for Sustainability: Adapting the product to be more sustainable and easily maintainable, since the service function requires a product that lasts over time.

- Tracking technologies: Integrate technologies to monitor product usage and ensure continuous service delivery (e.g. IoT, sensors).

4. Establish support infrastructure:

- Customer service and maintenance: Develop robust support services to ensure product maintenance, repairs, and updates throughout its lifetime.

- Customer relationship management: Implement a CRM (Customer Relationship Management) system to manage subscriptions and customer interactions.

5. Communication and marketing strategy:

- Market education: Create communication campaigns to explain to customers the benefits of switching to a service model (cost savings, flexibility, sustainability).

- Benefit promotion: Highlight the specific advantages of the service compared to purchasing the product, such as the absence of high upfront costs and access to the most recent version of the product.

6. Pilot phase and feedback:

- Launch a pilot program: Test the service model on a limited segment of customers to refine the offer and resolve potential issues before a wider deployment.

- Gather feedback: Collect feedback from early users to improve the service offer and adjust pricing and contractual terms.

7. Expansion and continuous improvement:

- Expand the service offer: Once the model has been tested and approved, extend it to other products and market segments.

- Continuous improvement: Continue to improve the service based on customer feedback, technological developments, and market trends.

8. Performance monitoring:

- Measuring key indicators: Establish indicators to monitor customer satisfaction, service profitability, and product sustainability.

- Regular reporting: Establish regular reports to monitor the performance of the service model and adjust the strategy accordingly.

By following this action plan, the organization will be able to move from an approach focused on selling products to an approach focused on providing services, thereby maximizing customer satisfaction and operational efficiency.