Today’s manufacturers want to capture 30% of revenue from services, according to a report from IDC. To be successful, service organizations need to help enterprise customers optimize and enhance their operations while minimizing errors, downtime, and all other forms of cost and waste. However, high technician turnover rates and slow ramp up times often hamper their ability to provide the best service experience.
With industrial augmented reality (AR), service organizations can onboard new technicians more efficiently and provide them with the resources they need to become effective in the field—almost immediately. Using AR, field technicians cover more service calls in less time, making service teams more profitable. Here are three tangible ways that AR is already driving additional revenue for service businesses.
Increased customer satisfaction, retention, and loyalty
Enterprise customers are driven by costs. They care about equipment uptime and performance so they can maximize manufacturing throughput – and aggressive equipment readiness SLAs reflect this attitude. AR makes service information easier to understand, so field technicians can perform their tasks more quickly and accurately – the first time. By improving first-time fix rates, service organizations can improve customer satisfaction, while freeing up more time for additional customers.
Improved customer satisfaction directly elevates brand reputation, which is extremely important in today’s highly competitive global environment. Manufacturers have seen a huge increase in opportunities from the global marketplace, and aftermarket services can bring additional revenue, often contributing 40 – 80% of profit according to Gartner (SLM Maturity Model). Service organizations using AR can better capitalize on these upsell opportunities due to their ability to scale service expertise, allowing them to increase revenue and the profitability of their products.
Higher service contract renewals
By empowering field technicians with training and remote expert guidance, AR can help service organizations improve SLA compliance. This creates happier customers and increases service contract renewals. Keeping those profitable customers around, while reducing business costs by minimizing avoidable expenses like repeat service visits, ultimately means more revenue for service businesses.
If you enjoyed learning about the ways that industrial AR can help service organizations increase revenue, check out this complementary infographic on how AR makes service teams more successful.
About the Author
Greg is a technology blogger telling real stories about industrial innovation, digital transformation, and futurism in the workplace. As a Content Marketing Manager at PTC, Greg is helping business leaders discover how augmented reality and the internet of things are empowering frontline employees, driving productivity, and differentiating brands.