The evolution of manufacturing service & aftermarket operations

According to Salesforce’s “Trends in Manufacturing” survey, 97% of enterprises in this industry are pursuing strategic changes to their service and aftermarket activities. More than a quarter (26%) are going all-in, planning a complete overhaul. But why such a dramatic shift? 

One reason is that today’s consumers expect a seamless experience at every stage of their journey—from their first interaction with a manufacturer to years later when they require maintenance, upgrades, or replacement parts. 

A strong focus on service and aftermarket solutions can improve customer relationships while increasing operational cash flow. It’s an opportunity to build recurring revenue and stay ahead of the curve by ensuring continuous support. 

Why forward-thinking manufacturers prioritise service and aftermarket activities 

Suppose you run a factory, and a critical piece of equipment fails during peak production. In that moment, what stays with you isn’t the initial purchase—it’s how quickly and effectively the manufacturer handled the issue. 

Customers feel the same about your business. If you want them to stick around in the long run, you need to provide value throughout the entire product lifecycle.

Salesforce’s report points to several drivers behind the growing demand for aftermarket and service support. These include but are not limited to:

• Customer loyalty and satisfaction top the list, with 50% of manufacturers citing it as a primary driver. Modern consumers have more options than ever before and can switch providers with just a few clicks. What keeps them coming back is the quality of the service, not just the product itself. 

• Competitive differentiation follows closely, with 46% of manufacturers seeing service excellence as a way to stand out in increasingly commoditised markets. When product features and specifications become similar across competitors, service quality creates meaningful differentiation.

• Brand reputation and customer advocacy (45%) rank third, as manufacturers acknowledge that customers share their experiences widely. Their comments and testimonials can reach millions, shaping brand perception. 

• Customer lifetime value enhancement (40%) is fuelling this shift, too. Service and aftermarket offerings drive repeat business, unlock opportunities for upselling and cross-selling, and can boost average order value. 

• Recurring revenue streams (35%), such as extended warranties and pay-per-use models, are driving manufacturers to transform their service and aftermarket operations. For example, aftermarket services tend to outperform original equipment sales, with operating margins averaging two and a half times higher.

Let’s assume your manufacturing business generates around €200 million annually from new equipment sales, with each unit designed to operate for 12 years. If you secure service contracts worth just 4% of the equipment’s annual value, that translates to €96 million in aftermarket revenue over the product’s lifetime. 

As mentioned earlier, aftermarket services often deliver margins two and a half times as high as new equipment sales. Therefore, your service contracts could contribute more profit than the initial sales while strengthening customer relationships.

The Performance Reality Check

Many manufacturers acknowledge that service is critical but aren’t yet hitting the mark. Here’s what the numbers say, per Salesforce’s report:  

• 41% of manufacturers tracking aftermarket service and sales revenue exceed their goals.
• 44% exceed customer satisfaction targets (measured through metrics like Net Promoter Score).
• 43% outperform their customer retention objectives.
• 39% reduce warranty claims to a greater degree than expected.
• 39% surpass product uptime targets.

This performance gap varies considerably by sector and region. For instance, 47% of manufacturers in the agriculture industry say they provide excellent service and aftermarket offerings, while materials manufacturers lag at 37%. Geographically, UK manufacturers show the strongest service performance (51%), well ahead of the Nordics (31%). 

Field service: a critical component of operational excellence

The technician arriving on-site is often the most direct interaction between manufacturers and their customers—and every visit can be an opportunity to build trust, reinforce value, and drive loyalty. That’s one reason 70% of manufacturing companies have field service operations with varying levels of technological sophistication:

• 70% leverage intelligent scheduling systems
• 57% use AI-generated summaries and reports
• 54% employ intelligent routing
• 52% run augmented reality applications
• 48% have video support capabilities

These are powerful tools, but there’s a catch: field service excellence requires more than just technology. In fact, most manufacturers see considerable room for improvement in field service performance.  

Only 41% of industry players feel confident in their ability to connect field service data with sales and production workflows, and just 40% excel at field technician training. Mobile technology for technicians (38%) and partner channel operations (37%) represent particularly challenging areas, per Salesforce’s “Trends in Manufacturing” survey. 

Even the smartest software falls short without well-trained technicians and a system that connects data across sales, production, and other key areas. When these elements come together, manufacturers are better able to deliver value at every touchpoint. 

Fluido, the leading Salesforce consulting partner in Europe, works with manufacturers to integrate AI and digital technologies into their workflows. This approach enables them to maximise their investments, gain more insight into customer needs, and drive operational efficiency. 

Service and aftermarket priorities in the manufacturing industry

Salesforce’s “Trends in Manufacturing” report identifies five focus areas in the industry: 

1. Inventory management tops the list, reflecting the importance of parts availability to service success. Efficient ordering, storage, and deployment of service parts directly impacts response times and first-time fix rates.

1. Logistics optimisation ranks second, as manufacturers seek to streamline the movement of parts and personnel to maximise service efficiency and minimise downtime.

1. Service parts availability follows closely, underscoring the need for timely access to the right components to enable fast repairs and maintenance.

1. Product customisation and engineering services come next on the list, reflecting manufacturers’ ambition to offer tailored solutions beyond standard offerings.

1. After-sales support and maintenance services complete the top five, encompassing the activities that ensure optimum performance throughout the product’s lifecycle.

These priorities vary by region and manufacturing sector. For example, French manufacturers prioritise service insourcing, while those in South Korea focus primarily on after-sales support. Manufacturers in the industrial consumables sector care most about logistics optimisation, whereas component manufacturers channel their efforts toward improving service parts availability.

Building the service organisation of the future

Before pursuing advanced service models, manufacturers should focus on optimising logistics, inventory management, and other everyday operations. When the basics are solid, technologies like AI and augmented reality can make an impact instead of just masking operational weaknesses.

With that in mind, consider the following strategies to optimise your service operations: 

1. Start with the basics 

Some manufacturers invest in the latest technologies, only to realise they’re wasting time and resources because the right part isn’t on the shelf or a field technician arrives unprepared.

While it’s important to embrace innovation, make sure you first have the basics in order. Focus areas could include:

• Optimise inventory and parts management to ensure high availability without excessive inventory costs.
• Streamline logistics capabilities to minimise response times and maximise efficiency.
• Ensure seamless coordination between internal teams and external partners.

2. Use technology strategically 

Salesforce’s “Trends in Manufacturing” survey reveals significant investment in service technologies, but their implementation must be strategic. If not, you could end up with disconnected or overly complex systems that create operational bottlenecks. 

For example, field service management systems can be used to improve scheduling, dispatching, and coordination. IoT and remote monitoring, on the other hand, enable predictive maintenance and proactive service. 

You’ll also want to look into mobile technologies for field technicians, which can boost productivity and enhance the customer experience. Or AI-powered apps that predict parts requirements, map out the most efficient technician routes, and facilitate knowledge management. 

3. Align service with overall business strategy

Service transformation delivers the greatest value when aligned with broader business strategies. Think of outcome-based contracts, where success hinges on service quality. Similarly, product-as-a-service models require sophisticated service capabilities to be viable. 

Is your business pursuing digital transformation? Then make sure your initiatives include service operations so you can improve the user experience and increase customer lifetime value. 

4. Focus on service as a growth driver

Forward-thinking manufacturers are repositioning service from a cost centre to a growth engine. While the exact approach will differ from one business to another, it often includes:

• Setting service revenue targets alongside product sales goals. This ensures service performance is measured and rewarded with the same rigour as product sales.

• Allocating dedicated resources and leadership focus to service innovation. Service teams get the backing they need to test new ideas, pilot concepts, and scale what works.

• Tracking and reporting service-specific KPIs at the executive level. This gives leadership full visibility into how service operations contribute to growth, customer retention, and long-term value.

By treating service as a growth driver, manufacturers can create more resilient business models and keep up with shifting consumer demand. Not only does this shift allow for new revenue streams, but it also strengthens brand loyalty and fosters lasting relationships. 

Final thoughts 

The message from Salesforce’s research is clear: service excellence has become a strategic imperative for manufacturers. Companies that thrive in this area gain multiple advantages—stronger customer relationships, more stable recurring revenue, greater competitive differentiation, and improved profitability.

Yet, the gap between results and reality remains substantial. While 97% of manufacturers are pursuing service transformation, far fewer are achieving excellence across key metrics like product uptime, customer retention, and warranty claim rates. 

Manufacturing businesses that bridge this gap by delivering exceptional service experiences while operating efficiently will likely emerge as tomorrow’s industry leaders. Those who continue to treat service as secondary to product development and sales will be scrambling to catch up.

The service transformation journey may be challenging, but the alternative—falling behind in this critical competitive dimension—is far more concerning. For forward-thinking manufacturers, the question is not whether to transform service operations, but how quickly and effectively they can make it happen.

An experienced Salesforce consulting partner like Fluido can guide manufacturers in this journey to help them transform service into a growth driver. From streamlining supply chains to building robust after-sales service capabilities, Fluido’s manufacturing specialists work alongside your team to drive long-term, measurable outcomes. 

Ready for the next step? Learn more about Salesforce Manufacturing Cloud, one of Fluido’s core solutions, or reach out to a consultant to see what we can do for your business.