Hi there,
I’m back for a new edition of our CONNECT newsletter.
We have an interesting case this week 👀
Albrecht Bäumer, a leading machine builder in the foam industry, accomplished an impressive 127% return on investment (ROI) by offering free remote access during their machines' warranty period.
Sounds crazy? Let's take a closer look 👇
Every machine builder has 3 types of customers:
- Customers who accept machine connectivity, and pay for it
- Customers who accept machine connectivity, but don’t want to pay for it
- Customers who will never accept it, e.g. due to regulatory compliance
The same is true for Albrecht Bäumer.
Every year they sell ca. 150 machines with a 12-month warranty. On average, each machine experiences one issue during this period. Fortunately, 55% of these issues can be resolved remotely, while the remaining 45% require on-site intervention. The cost for a single on-site visit is approximately €2,900.
Based on this scenario they calculated 3 approaches:
Approach 1: No remote access
Without implementing remote access, Albrecht Bäumer would need to deploy personnel for each issue, resulting in an annual expense of €435,000.
Approach 2: Paid remote access option
If remote access is offered as an optional add-on, and 20% of customers choose to use it at a cost of €2,000, the potential savings for the company amount to €47,850.
Approach 3: Free standard remote access
Albrecht Bäumer's decision to include remote access as a standard feature for all machines during the warranty period has brought significant benefits.