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Distributors play a critical role in streamlining supply between OEMs and retailers. Using their local presence and expertise, they build market reach for manufacturers while directing effective sales campaigns. However, increasing sales is not their only job. Given the focus on creating outstanding customer experiences, distributors today must also be great at delivering value-added services. Therein lies a challenge for OEMs to ensure those services don’t go unrecognized and undervalued.
Here’s a look at the scale of the challenge and how to overcome it.
When manufacturers want to deliver products to a broader range of market segments and geographies, they typically rely on distributors to expand their market footprint. It’s a cost-effective way to connect locally with their customer base and gain deep market insights. OEM manufacturers can focus on branding, technology innovation, and product quality. Distributors give those products the market success they deserve.
Distributors act as the bridge between manufacturers and customers, working on behalf of the company and meeting customers’ needs. By staying abreast of the latest market trends and customer demands, they help manufacturers with the intelligence they need to take advantage of emerging opportunities.
For example, medical device manufacturers increasingly work with distributors to enter new markets, take advantage of logistics and regulatory compliance expertise, and increase their market share. They help streamline the supply of medical devices while leveraging their expertise to balance demand and supply. They also ensure materials and supplies arrive at healthcare facilities when medical professionals need them.
As customers increasingly place a high price on the service they get, it becomes critical for distributors to prioritize service experiences. That said, delivering (and maintaining) good customer service experiences can be enormously challenging:
The service challenges faced by distributors not only impact their own business but also that of the OEM. Poor service delivery can bring down the brand’s reputation, hurt overall customer satisfaction, and hamper the growth of OEMs. When distributors can’t provide the appropriate service information, they can cause issues for OEMs upstream. For example, a lack of timely service response allows for inappropriate service or part replacement schedules and leads to situations where the OEM wastes resources on overstocking parts and materials across the channel.
OEMs rely on distributors to drive sales. At the same time, they need to ensure high-quality service performance. Modern platforms that power service networks like Atheer can help partners manage this process well. Regardless of service experience, these platforms can drive consistency, quality, and efficiency across the partner service network.
For OEMs that rely on a web of distributors, Atheer lets an OEM’s channel partner teams take control of service performance.
Great products deserve great service. Manufacturing high-quality products isn’t the only thing manufacturers must worry about. Outstanding service performance is a function of customer satisfaction. According to McKinsey’s 2022 State of Customer Care Survey, customer care is now a strategic focus for companies, with retaining and developing the best people, driving a simplified customer experience (CX), and reducing call volumes and costs being their top priorities.
When you want to support your distribution partners in installing, setting up, and troubleshooting your products with maximum efficiency, embrace a service delivery solution that overcomes the many challenges of multifaceted and complex distribution channels.
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