Some 60% of consumers rate the post-purchase experience as underwhelming, 56% were disappointed with service from retailers and ecommerce sites, and only 17% of consumers believe brands care about their experience after they make a purchase.
Research released Tuesday from the Chief Marketing Officer (CMO) Council and LiveTechnology identifies consumer sentiment and the discrepancies in how manufacturers and retailers view and approach aftermarket consumer products, from revenue and profit to relationships with other companies and consumers.
CMOs are the brand steward and customer champion, but the report finds they are not as active as they need to be in terms of taking a proactive role managing the experience from pre-purchase to post-purchase.
Just 45% of marketers at manufacturing companies say their companies view aftermarket services as a strategic focus that is essential to customer experience and business success. This compares to 56% of marketers from retail organizations. Even closing this slight gap could help to improve returns.
While 71% of manufacturers believe their level of ownership satisfaction is excellent or very good, retailers are not as optimistic. Only 26% give manufacturers the same ranking, with another 31% saying it varies greatly by brand.
The study, Elevate What Consumers Appreciate: Increase Brand Attraction by Upgrading Ownership Satisfaction, highlights the need for brands in the $12 trillion consumer durables market to improve commitments to quality aftermarket services, 24/7 multichannel customer support, and timely repair and parts replacements.
The CMO Council’s online survey of 150 marketers, split between retail and manufacturing decision makers, was fielded in second-quarter 2017.
The report analyzes concerns for creating lifelong customers and the loss of revenue that ignoring the aftermarket service industry can lead to. It also explores why this falls at the feet of the CMOs.
Despite the fact that 93% of manufacturers view ownership experience as important to the business, they lack leadership, focus and commitment to realize revenue and profit from the aftermarket business. About 52% rely on a channel partner for service.
An opportunity to improve revenue from the aftermarket exists, but just 19% of manufacturers derive more than 10% of their revenue from aftermarket services, and only 20% generate more than 10% of their profit from this area.
This compares with 65% of retailers who source more than 10% of their revenue and 51% who earn more than 10% of their profit from the aftermarket.
Meanwhile, 61% of retailers admit to playing a significant role in advancing the ownership experience and helping manufacturers distinguish their brands in the aftermarket service sector.