2024 Aftersales Trends and Predictions for OEMs

As the world says hello to a brand new year, we’d like to share with all OEMs where we believe the focus should be for those working in the After Sales market.

Below you’ll find exciting news about our industry, some top tips on what to look out for and where, and some stellar examples of who’s doing what right.

All in the aim to guide you to making the right decisions for the year ahead. 

1. Digital transformation gaining pace

We fundamentally believe that it won't be long before the digitization of the customer experience and operational processes of After Sales becomes the absolute standard for all OEMs.

Briefly looking back at 2023, we can see that the trends support this claim.

After releasing a new state-of-the-art digital marketplace for their car parts, Stellantis have gone one step further with their recently announced virtual cockpit.

A place to speed up customer feedback and replicate real-world experiences, they’re able to give consumers a seat to what they see, like never before. 

What does this mean for the majority of OEMs' After Sales teams out there?

Not all OEM After Sales departments can jump on the newest shiny tech such as AR, which is investment-hungry.

But SaaS solution providers are helping to create a more level playing field with 3D interactive technology for aftersales.

Software like 3D parts catalogs is completely revolutionizing the life of those working in After Sales.

This allows OEMs to showcase immersive models with efficiency and accuracy, making diagnostics, part sales and servicing easier than ever before. 

A digital transformation like this means the world for effective After Sales processes.

Wherever administrative time is greatly reduced, money is saved. 

This ultra-real digitization would have felt like an impossible dream a decade or two ago, but now it’s the least customers are asking for. 

If any business is still working exclusively from PDFs and paper catalogues in 2024, we’d be surprised to see them pulling a profit in 2025. 

2. Data management will get more efficient with the help of AI

When it comes to data and advancements in AI, what used to be a nice add-on for the After Sales market, has quickly become essential.

We’re confident that predictive analytics, machine learning, and AI-driven solutions will continue to be integral in 2024, especially for teams wanting to improve their overall efficiency. 

As an industry, we’re struggling with both BOM and CAD management on multiple levels.

From multiple naming conventions, disconnected databases and teams, and the impossibility of keeping track of versions upon versions of Excel and PDFs, to certain team members having all the knowledge in their heads, we need a better way of sharing and managing data while collaborating productively.

How do we stitch the engineering and aftersales departments together for a seamless output without having to maintain multiple records at the same time?

With the CRMs and PLMs coming into play now, it's happening slowly, but obviously, there's a challenge there in terms of the backdated history, of how they've operated previously.

Now there's a lot of information there that, that will need to be translated.

And CAD softwares often have multiple parts that an after sales manager won't even need.

- Parris Hall, Head of Customer Success, Partful

Data management, such as CAD and BOM management, is essential for virtual twin and digital twin technologies.

Science Direct has a wonderfully exhaustive list detailing the many benefits and opportunities Digital Twin solutions can offer.

Just a brief scan and you’ll see the sheer wealth of industries that can take advantage of Virtual Twin technologies, including manufacturing. 

It’s apparent integration is not enough to create an efficient automated workflow.

Machine learning will play a vital role in aiding the data management and 3D Virtual Twin/Interactive Technologies in recognising parts, matching data and cleaning databases.

Get ahead of the curve and get started on improving After Sales data management, check out Partful’s data management resources here.

3. Customer experience becoming after sales KPI

If customer experience isn’t already an After Sales KPI, it soon will be. And here’s why. 

The buzzword for OEMs and 2024 is “servitization”.

You can read more about the ins and outs of this concept through Copperberg’s take on servicing the customer, but the gist is that every company should place a great customer experience at the forefront of their thoughts. 

When you take the time to build a servitization model that is fully integrated and keeps customer experience at its core, your team will be able to take hold of the opportunities arising and build a process that not only drives revenue but provides a better product for your clients. 

- Nick Saraev, Copperberg

When it comes to After Sales, we’re convinced it’s the number one item on any list of improvements for OEMs for the new year.

A user-friendly online hub is not only crucial for drawing people to your After Sales, but for retaining them as customers for the long haul. 

The primary goal should be to make navigation and website use as easy as possible.

If a customer can order a pizza and a cab at the click of a couple of buttons, they should be able to get their After Sales parts as easily too.

With great search functionality, they should only need basic information (a product serial number/VIN or a product name) to find the part they need. 

Your job is to get a site that does all the hard work for you.

How satisfying is it when everything just works as it should?

That’s the sort of website customers bookmark and come back to again and again. 

Chief marketing officers and head of marketing are getting far more involved in decision making and in orchestrating how to engage with a customer from a parts perspective because it can be such a brand differentiator.

If you've got an after sales solution that connects digitally with your consumer through the life cycle of that asset, what an opportunity that is.

- Sam Burgess, CEO, Partful

Those in agricultural and construction services know they have a wealth of businesses to compete with.

If you don't provide a good experience when things go wrong, you better believe your customers will get frustrated and look elsewhere.

You don't provide a good experience in terms of when things go wrong, then you better believe that your customers will get frustrated.”

- Daniel Horrocks, Sales Director, Partful

Even better, ensure your site is mobile-friendly. A recent survey by App Annie discovered that 60% of Americans prefer to shop on their smartphone.

OEMs know that their customers are no different.

If it means using the phone that you’ve always got on you, or heading back to the office and back to the laptop or PC, to then find the website, scroll through the ads trying to turn you to a rival product, simply to place one order, you’re gifting your buyer ways to forget about the job at hand - or even worse, gifting them an opportunity to find an alternative.

Add to that, great security and quick loading speeds and you’ll have an online presence that shows your best side.

One that gets sales up and customers coming back throughout the year. 

See how you can start improving your customer experience using our resources here.

4. Repair and aftersales will be even more involved in corporate sustainability

Sustainability is certainly nothing new for OEMs.

But the sheer drive to put sustainability at the top of the list still gathers pace year-on-year. 

As highlighted in this article, The Right-to-Repair Act continues to go from strength to strength, which is great news for those in the After Sales business.

And great news for the planet in general.

One company already making improvements as we begin 2024 is Geotab.

The connected transportation solution provider has formed a Sustainability Solution and Services Alliance to look for ways to improve their carbon footprint and enhance their fleet's efficiency.

With a reliance on electric vehicles that have parts needed to repair and replace, this sort of cross-company collaboration can do wonders for the supply chain. 

However, Intellectual Property....

We've talked a lot about how complying with Right to Repair can mean compromising IP for a lot of OEMs.

But it doesn't have to be.

There are multiple ways OEMs can adopt this year to protect their IP while going more mainstream with repair.

I've highlighted multiple solutions to this in my LinkedIn post series below.

And 3D interactive and exploded parts catalog software provides the best user experience for parts identification and ordering.

Read more about how you can get ahead of the sustainability curve in After Sales here, using 3D exploded parts catalogs.

5. The continued rise of direct-to-consumer channels

Not too long ago, selling directly to the consumer was almost unheard of for Original Equipment Manufacturers. 

Now, it makes up a large percentage of where OEMs should be directing their attention. 

Not only does it streamline the distribution process, but it’s key to establishing a greater connection and closer relationship between client and consumer.

As well as D2C channels being the way forward, we predict big things for subscription channels.

According to Reports and Markets, the global subscription e-commerce market was valued at $96.61 billion just two years ago.

While this is already a mouth-watering figure, it’s forecasted to grow to $2419 billion by 2028.

One of the sectors already capitalising on this enormous growth potential is the automotive industry.

The car subscription business (as outlined here by Loopit) was once just a novel idea.

Now it’s changing the shape of the industry.

Automakers like BMW, Porsche, and Volvo are taking full advantage of this trend and OEMs are reaping the benefits. 

Again, 3D interactive technology that’s language agnostic can accelerate our way to D2C. 

At Partful, we have OEMs After Sales teams take advantage of our intuitive platform to sell parts directly to their end users.

Even with somewhat complex machines like lawnmowers, wood chippers and Electric motorbikes and scooters, Partful’s OEMs are taking their parts sales to a whole new scale.

There’s no need for jargon or language translations.

Below is a great example of how an end user easily navigates to find the part they’re looking for and buy it in seconds.

This is where Partful creates a more level-playing field for the majority of OEMs out there.

Finally for this section, with the collection of data still being a kingmaker, cutting out the middleman between the customer and you, gives you far greater insight into patterns, so you can see for yourself where the next trend will be. 

Thinking about taking your parts sales directly to consumers but not sure where to start, check out our resources here.

6. Enhanced warranty service efficiency

Warranty issues and recalls have always been a costly offshoot for all OEMs.

But while it has previously been “factored in”, improvements to the technology related to warranty services have started leading some to believe high-cost issues could now be eliminated.   

Just as recently as last June, IBM put together a comprehensive take on how digital twin technology can help avoid or reduce warranty claims.

In their report, they highlighted the effectiveness of this new technology specifically in the automotive trade.

With the ability to locate specific parts to recall - as opposed to pulling back the whole vehicle - huge cost savings can occur. 

Improvements to the efficiency of your warranty service process can also help reduce fraud.

With almost 5% of revenue eaten up by warranty costs in the car industry, using data to help weed out the fraudsters isn’t just common sense, it’s essential.

RTInsights highlights how OEMs are protecting their bottom line by looking at data collection and analysis  to both improve their warranty system and completely redefine what it means to customers and businesses alike. 

7. Tackling global supply chain challenges

With many businesses still coping with the after effects of COVID-19, 2024 has got off to a turbulent start on the global stage.

Wars in the Middle East and Eastern Europe continue to impact businesses and supply chains, with the World Economic Forum citing conflict as one of the major risks to the economy.

Add to this the ongoing impact of Global Warming and OEMs need to look for smart ways to tackle the new challenges they face.  

One recent initiative from Toyota was the use of Blockchain Technology in the supply chain.

Initially conceived as a cross-group way of connecting people, it has recently been used to improve business process efficiency with a focus on recording and sharing information on parts manufacturing and shipping. 

As OEMs in all sectors shift to an in-house focus in the production of parts, companies are continually looking for ways to gain a little extra control.

KPMG have a fantastic read on just a few of the ways businesses can keep on top of these issues, including looking at technological solutions and data management (solutions like exploded view parts software) as a way to keep ahead in an unpredictable world.   

How to grow in 2024

There you have it.

A detailed look at what OEMs should be considering for the year ahead. 

A consistent thread in all those trends is that technologies are at the forefront of change.

Big OEMs will be investing in the further development of AI, ML, AR and blockchain.

But the majority of the industry will benefit from a rise in SaaS with 3D interactive technology.

And we’d be remiss not to point out how Partful can help you get ready for the future today.

Using our efficient and effective 3D Explosion Parts Catalog, you can get your business moving into profitable aftersales revenue in 2024. 

Hear more about the latest trends and future predictions for OEMs through our podcast: