Unleashing hidden potential: How industrial companies can monetize their services for success

Best-in-class industrial companies are increasing price differentiation (and competitiveness), diversifying revenue streams, and empowering sales in negotiations to drive higher margins.

What is service monetization and why is it important?

Service monetization is the act of articulating and capturing revenue for activities beyond delivery of goods, e.g., rush orders. In our experience, this pocket involves significant hidden costs in many companies, which typically grow faster than product revenue. Getting service monetization right is imperative. Our recent survey at Simon-Kucher found that industrial companies expect their service revenues to increase by 115% over the next three years. For best-in-class companies, this results in an innovative product-service centric model that focuses on selling a total solution to deliver an…