A new study from the CMO Council reveals that while most brands identify enhancing the product ownership experience as a key differentiator, there’s a significant gap in their efforts to take advantage of post-purchase revenue, profit and relationship-building opportunities.
The report, titled Elevate What Consumers Appreciate: Increase Brand Attraction by Upgrading Ownership Satisfaction, showed that while 93% of manufacturers view ownership experiences as important to the business and a significant brand differentiator, only 19% derive more than 10% of their revenue from aftermarket services.
Retailers, who have a more direct connection with end consumers than manufacturers, appear to be taking the lead in this area. While 56% of marketers from retail organizations say their companies view aftermarket services as a strategic area of focus and essential to customer experience and business success, only 45% of marketers from manufacturers do.
A few retailers have taken advantage of the perks of offering services post-purchase, including Best Buy, which is famous for its Geek Squad services. Others are following suit. Seeking to get into IT services, Office Depot acquired CompuCom for $1 billion, and DSW also is dabbling in services by offering shoe repair in stores.
Additionally, IKEA recently purchased TaskRabbit, an on-demand marketplace for finding workers to complete specific tasks. The partnership will allow the retailer to learn from TaskRabbit’s digital expertise while adding a perk for IKEA shoppers, according to Jesper Brodin, President and CEO of IKEA Group. When the acquisition is complete, IKEA customers in the U.S. and London will have TaskRabbit “taskers” available to them.
“While top management on the manufacturer side is strongly committed to creating customer-centric cultures, they don’t appear to be giving CMOs the responsibility to take ownership of the aftermarket as a revenue and margin opportunity or a critical area of customer loyalty-building and brand attachment,” said Donovan Neale-May, Executive Director of the CMO Council in a statement.