How XaitCPQ Enables You to Secure High-Profit Advanced Service Agreements, Part 1

How XaitCPQ Enables You to Secure High-Profit Advanced Service Agreements, Part 1

Kevin Geraghty
18. Jan 2022 | 2 min read

How XaitCPQ Enables You to Secure High-Profit Advanced Service Agreements, Part 1

XaitCPQ makes it easier for you as a manufacturer to upsell aftermarket services and introduce highly profitable advanced service contracts.

As a manufacturer, success is no longer measured in units sold but rather in the value created over the lifetime of a customer relationship. More than ever, customers depend on their equipment suppliers for specialized service expertise as equipment becomes increasingly complex and high-tech.

That means products need to be accompanied by services.

Instead of solely selling products, manufacturers are moving towards recurring revenue models based on subscriptions. As they transition from selling a product to a service, Original Equipment Manufacturers (OEMs) are looking to sell long-term advanced services agreements alongside their equipment โ€“ and increasingly, in place of their equipment.

OEMs Face Two Main Challenges

Offering advanced services agreements along with your equipment allows you to grow your business and strengthen your customer relationships.

Traditional sales processes, however, will make it difficult for you to land advanced service agreements during the sale of a high-variance, tailored product. Your sales team may be forced to scramble for pricing information across multiple sources and tools, making the sales process slower and more costly.

As you transition into a service-based business model, you will face two challenges in particular:

  • Avoiding the pressure to give the services away to secure the initial sale.
  • Pricing multiple machines at different locations, all of which are different in type and age.

Therefore, you need a solution that enables you to guide customers to the right combination of equipment and matching service agreements based on their unique requirements.

By doing this, you can optimize your sales cycle, build closer relationships with your customers, and ultimately increase predictable revenue and customer lifetime value.

If you recognize this situation, then look no further; Xait has the perfect solution for you.

In part 2, we will discuss five ways XaitCPQ can help you introduce new pricing models and secure higher-profit advanced service agreements.

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Kevin Geraghty

Kevin Geraghty

Kevin's passion is helping companies become easier to buy from. He is a pioneer and thought leader in CPQ (Configure, Price, Quote). Quick to spot how technology (in particular CRM and product configuration software) enhances sales team performance, he was instrumental in the development of cloud based CPQ applications. He co-founded BlueprintCPQ in 1999, and built this to become one of the most powerful and flexible CPQ platforms. BlueprintCPQ was acquired by Xait in December 2020 where Kevin is Head of CPQ practice and Managing Director of Xait Ltd where he continues to apply his innovative thinking and experience to drive sales efficiency.

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