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           COVER STORY                                                                                                                                                                                    Hall No: H 14 Booth No: G 91










































           equipment industry was US$4 billion last year. Purchases by rental   much that they are willing to tell others. This means that they
           companies accounted for US$2.3 billion of this or 58%.  need to keep a pulse on what customers are thinking, saying,
           This is a lower proportion than rental’s share in unit terms (67%)   and doing to continuously refine and improve offerings. Leaders
           because of the high number of backhoe loaders – a relatively   must quickly sift between what is relevant versus what is noise.
           low cost machine – bought by rental companies. However, this   In becoming a customer-first organization, construction
           share in value terms has taken a huge leap from where it was in   equipment companies need to cement a stronger relationship
           2010, when, despite representing 47% of the machines sold in   with  their dealers. In turn, dealers can use their extensive
           unit terms, rental accounted for just 31% in value terms - about   knowledge and networks to increase their engagement with
           level with the share attributable to contractors.   customers and act as advisers. They can stimulate interactions
           With massive machines being deployed by rental companies   among customers—for example, by hosting quarterly equipment
           each year, equipment rental in the CE industry has witnessed   forums—and provide deep content knowledge to customers
           a rapid surge in the past few years. Going ahead, numerous   on topics of interest such as equipment electrification, used-
           attractive financing options for rental equipment promises to bring   equipment value, and the benefits of connected equipment.
           forth lucrative opportunity for investors and manufacturers.   Dealers are optimally positioned to offer tailored advice to
                                                               customers (for example, how to lower TCO) given their deep
           Customer Centricity                                 understanding of both customers and their equipment. Dealers
           To continue to thrive in this new environment, all the stakeholders   could also create opportunities for customers and OEMs to
           of the segment, be it manufacturers or their dealers, must invest   collaborate on product development. Not only this, the partners
           now to build the sales and service organizations, which will   can leverage connected equipment to perform maintenance
           need to operate as digitalized, customer-centric businesses.   as needed and design a digital service journey with seamless
           To achieve this vision, they need to have the confidence to   scheduling, payments, and equipment status updates. These
           disrupt themselves. Now is the time to define opportunities to   efforts have led not only to increased aftermarket service and
           better serve customers, develop competitive differentiators,   parts revenue but also to increased new equipment sales
           and translate these into strategic initiatives such as analytics use   because of an improved customer experience, according to
           cases, lead enrichment, and digital-sales front ends. Good news   McKinsey analysis.
           is that construction equipment industry has already embarked   Once they  are  able to  implement a forward-looking  model
           on this journey and are set to reap the benefits of the first-mover   that encompass all these parameters, the journey to customer
           advantage as they move ahead. Organizations need to ensure   acquisition & retention will be far easier and smoother. In order to
           that they are designing offers that a set of customers love so   deliver greater convenience and higher economic value to their


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