92% of service organizations struggle to consistently meet customer satisfaction goals
STOCKHOLM, Sept. 26, 2024 /PRNewswire/ — Syncron, a global leader in intelligent service lifecycle management solutions, today announced the results of its 2024 research report, “Modernizing the Aftermarket.” Conducted in collaboration with Field Service Associates, the report focuses on the immediate challenges service organizations face in navigating a complex and rapidly evolving industry environment.
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Currently, 92% of service organizations find it difficult to consistently meet customer satisfaction goals, one-third (33%) still rely on manual processes to manage spare parts inventory, and nearly all (99%) report challenges when adopting new technology, including concerns about data security (41%) and difficulty identifying the right solutions (39%).
The findings highlight the need for service organizations to adopt new business models, bridge the gap between current operations and future industry demands, and choose technologies that will help them address business complexities.
Strategic priorities for future growth
Respondents said their organizations expect revenue from outcome-based service models to increase from 25% to 41% over the next five years. This big shift makes sense: focusing on delivering a specific outcome or result, rather than just a product or service, can be a powerful tool to increase customer satisfaction.
All respondents believe investments in operational improvements will lead to increased profits, with more than a third (34%) expecting an increase of 15% or more. Nearly half of respondents (48%) say supply chain optimization could result in the biggest increase in revenue and profit margins. Organizations can also benefit from improved part pricing (59%), addressing supply chain infrastructure costs (58%) and optimizing inventory levels (53%).
Manual to automatic transition
As service organizations continue to move away from manual and outdated processes, it is becoming increasingly important to adopt advanced technologies like AI and automation to manage modern data complexities, ensure regulatory compliance, and improve decision-making. In fact, 39% of respondents said the use of advanced technology was “most important” when selecting a solution for their organization, and nearly half (48%) cited “global visibility into data” as a key benefit of modernizing their aftermarket functions.
The survey also found that incomplete or inaccurate data can significantly hinder an organization’s ability to accurately measure performance, with nine in ten (90%) organizations saying data is a challenge to monitoring key performance indicators (KPIs), including data quality (49%) and quantity (43%).
The story continues
The expanding role of sustainability
Sustainability is a top priority for aftermarket operations, with 95% of respondents indicating they plan to move to a circular economy model within the next 12 to 24 months. This move reflects a growing recognition that adopting a circular economy model can lead to significant cost savings and operational efficiencies. While the movement toward a circular economy is clear, nearly three-quarters of respondents (76%) believe significant improvements are needed in how their organizations track circular performance metrics and measure the carbon footprint of their supply chains (75%).
“As the aftermarket becomes an increasingly powerful engine of commerce, companies ready to invest in innovative business models, technology and sustainable practices will be best positioned to lead the way,” said Sean O’Neill, chief product and technology officer at Syncron. “These findings provide valuable insights for organizations looking to stay ahead in a competitive environment by adopting a data-driven, customer-centric approach.”
Methodology
Syncron commissioned independent research firm Vanson Bourne to survey 600 service and supply chain decision makers across North America, Europe, Asia Pacific, Latin America and the Middle East in May 2024. Respondents came from organizations with annual global revenues of more than $250 million.
To see the full survey findings and learn more about how organizations are modernizing their aftermarket operations, download the Aftermarket Modernization Report.
About Syncron
Syncron helps manufacturers and distributors capitalize on the new service economy by optimizing aftermarket profitability, increasing customer loyalty and enabling the transition to servitization. Syncron connects all aftermarket services on its Connected Service Experience (CSX) cloud platform, helping companies differentiate through exceptional aftermarket experiences and drive significant revenue growth. The world’s top brands trust Syncron, making it the largest privately held global leader in intelligent service lifecycle management SaaS solutions. Learn more at www.syncron.com.
(PR News Photo/Syncron)
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SOURCE Syncron
