In the fast-paced world of industrial Original Equipment Manufacturers (OEMs), gaining a competitive edge is paramount for sustainable growth. While conventional strategies such as price increases have been relied upon, forward-thinking OEMs are now turning to a more innovative approach – harnessing the power of Applied AI (Artificial Intelligence) to unlock untapped potential in the aftermarket. This blog delves into the pivotal role of applied AI in the Industrial sector and how it can revolutionize how OEMs drive volume growth and enhance customer experiences.
Applied AI: Transforming the Industrial Landscape
Moving Beyond Price Increases: The Elephant in the Room
For years, the go-to tactic for many manufacturers has been price increases to drive revenue growth. However, this approach has its limitations, with a significant portion of revenue growth attributed to external factors like inflation and supply chain challenges. As a consequence, OEMs often find that only a portion of the growth results from actual volume increase, and it’s frequently concentrated among a select few top customers. This situation begs the question: What else can be done to achieve sustainable volume growth?
Segmenting and Clustering for Deeper Understanding
Applied AI empowers industrial OEMs to segment and cluster customers based on their behavior and usage patterns. This yields invaluable insights, allowing OEMs to tailor their products and services to cater to the unique needs of each customer segment. AI-powered segmentation also facilitates more targeted marketing campaigns and significantly enhances customer engagement.
Predictive and Prescriptive AI: Empowering Smart Decisions
One of the most compelling aspects of applied AI is its predictive and prescriptive capabilities. By analyzing historical customer data, AI models can forecast future trends and customer behavior. This empowers OEMs to anticipate their customer’s needs and offer proactive solutions, thereby driving customer satisfaction and loyalty.
Furthermore, prescriptive AI models can recommend specific actions based on insights gathered from customer data. This enables OEMs to optimize sales and service strategies, identify cross-selling opportunities, and streamline inventory management.
Personalized Recommendations with Propensity Scores and Collaborative Filtering
Applied AI takes personalization to unprecedented heights through propensity scores and collaborative filtering. Propensity scores help identify high-potential sales opportunities by analyzing customer behaviors and preferences. Armed with this information, OEMs can target customers with relevant offers, significantly increasing the chances of conversion.
Collaborative filtering, a technique well-known from e-commerce platforms, empowers OEMs to make personalized product recommendations based on customers’ past purchasing behavior. This approach not only enhances customer experience but also drives repeat business and fosters brand loyalty.
Entytle’s Platform: The Central Nervous System for OEMs
A standout platform in applied AI for industrial OEMs is Entytle’s solution. This comprehensive tool serves as the central nervous system for OEMs’ install base, empowering them to manage and serve customers with greater efficiency. Leveraging the power of AI, the platform processes and analyzes vast amounts of data, providing real-time insights and actionable recommendations that enhance decision-making.
Addressing Data Quality Issues: A Common Challenge
Data quality issues are a ubiquitous challenge faced by industrial OEMs. Entytle’s platform effectively tackles this concern by offering data profiling and cleansing services, ensuring that the data used for AI-driven solutions is accurate, reliable, and of the highest quality.
The Efficiency Advantage of Specialized Solutions
Implementing an AI project in-house can be a time-consuming and costly endeavor. Here’s where leveraging specialized solutions like Entytle’s platform can make a world of difference. By offering pre-built algorithms and a focus on specific business needs, these platforms streamline the AI adoption process, allowing OEMs to reap the benefits of applied AI more swiftly.
Applied AI has emerged as a game-changing technology for Industrial OEMs. By addressing data quality issues and harnessing the power of AI-driven segmentation, predictive modeling, and personalized recommendations, OEMs can optimize their operations, enhance customer experiences, and drive sustainable growth.
Leveraging specialized platforms like Entytle’s solution provides a competitive advantage, making AI adoption seamless and efficient. Embracing applied AI is the way forward for industrial OEMs looking to stay ahead in a dynamic and ever-evolving market. With the power of AI at their disposal, OEMs can confidently embrace the future and secure their positions at the forefront of their industry. For a deeper understanding of how Applied AI is transforming the Industrial landscape, we invite you to watch this insightful video.