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Transform customer service with servitization

Industry leaders are rethinking their approach to service – not just to manage or recover from a disruption but also for thriving in a normal and competitive economy. Many companies demand greater service revenue, especially those that operate in industries where products are often treated as commodities.

Initially deployed to allow customers to rent rather than purchase software, storage, and other capabilities, the servitization business model has since expanded to cover a variety of goods and services across all business sectors. One area in which this creates great impact is customer service, which has traditionally been more of a cost center. With servitization, it can be made into a center for revenue.

A company can offer service levels with corresponding tiered pricing, enabling customers to select the exact amount of support they require or can afford. This gives consumers control over the service experience and attends to their needs with precision. And by exploring new opportunities to provide value-added offerings, the enterprise creates additional avenues for service revenue and growth, while delivering the high standard of experience demanded by its customers and earning greater loyalty in return.

Capgemini understands that powering services with technology is vital for operating in the new normal. There are many options for service technology, ranging from simple to complex, with the critical factor being implementation. Using predictive models and artificial intelligence, for instance, enables a manufacturer to service its leased equipment before it breaks down. These service costs can be integrated into the servitization package and are fitting for many customers willing to pay for peace of mind.

Download our PoV, Servitization can make customer service a revenue center to learn more.

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