Economic uncertainty often forces businesses to tighten budgets, slowing capital spending and delaying major investments in new equipment. Siemens’ recent report reveals a decline in new equipment orders, reflecting this trend. For OEMs, this poses a potential revenue crunch. Yet, hidden within this challenge lies an overlooked growth opportunity: leveraging installed base strategies to drive sustained growth.
Rather than relying solely on new equipment sales, OEMs can pivot to maximize revenue from aftermarket services. By focusing on optimizing their installed base, OEMs can unlock untapped opportunities through data insights and predictive AI. Here’s how:
1. Map Your Installed Base: The Foundation of Installed Base Strategies
Understanding your installed base is foundational to any successful aftermarket approach. Identifying where equipment is deployed, its performance, and its lifecycle stage enables OEMs to anticipate customer needs proactively.
However, fragmented data silos often hinder visibility, making it difficult for OEMs to realize the potential of their installed base. Tools like Entytle can help consolidate these silos, providing a unified view of deployed assets. A clear and organized view of your installed base is critical for implementing effective installed base strategies that ensure better service delivery and lifecycle management.
2. Transform Data Into Predictive Opportunities
Data is a cornerstone of effective aftermarket strategies. With proper visibility into your installed base, predictive AI can unlock actionable insights by analyzing usage patterns, equipment age, and performance trends.
For example, predictive algorithms can forecast maintenance needs or parts replacements before breakdowns occur. This enables OEMs to engage customers with proactive solutions, reducing downtime and driving recurring revenue opportunities. Installed base strategies that integrate predictive AI help OEMs provide timely upgrades, replacements, and preventive care.
3. Build Customer Loyalty with Proactive Care
Proactive services play a vital role in building long-term customer loyalty. Addressing maintenance needs or performance upgrades before customers experience issues not only prevents disruptions but also signals your commitment to their success.
These actions strengthen trust, positioning your brand as a reliable partner. By embedding proactive care into your installed base strategies, you can enhance customer satisfaction, improve retention, and secure future business opportunities.
4. Explore Innovative Revenue Models through Installed Base Strategies
A well-executed installed base strategy enables OEMs to adopt innovative revenue models. Subscription-based services for maintenance, performance monitoring, or predictive analytics offer ongoing value to customers while generating consistent income for your business.
These models differentiate your offerings and provide resilience during economic downturns. When built around a robust understanding of your installed base, they enhance customer satisfaction and provide a steady growth engine for your business.
Conclusion: Installed Base Strategies Are the Key to Sustained Growth
As new equipment sales decline, the future of OEM growth lies in optimizing installed base strategies. Leveraging tools like predictive AI and data consolidation, OEMs can shift from reactive to proactive service models, unlocking hidden opportunities and driving consistent revenue.
Entytle empowers OEMs to uncover insights within their installed base, strengthen customer relationships, and explore innovative revenue streams. Your installed base isn’t just a collection of assets — it’s a strategic growth engine waiting to be tapped.
