In the last two decades all OEMs have found new space for growth by leveraging additional revenue streams thataddressed downstream business and ancillary products and services. They realized that even though they were massivelyinvesting in marketing and sales activities that attempted to influence consumer perceptions in order to generate salesopportunities, they were achieving only 40% of customer spending.
At this time the situation has improved, but not changed significantly. The average customer share of wallet for manyplayers in the industry reached a ceiling of around 55-60%. Nevertheless, further growth space can be found by hitting ahigher share of overall customer spending and finding a better trade-off between volume and profit in mature markets.Arthur D. Little has identified and tested four pillars to unleash the full potential of the market, generating 5-6% of totalrevenue growth and from 4-5% profit increase. Transaction price optimization and value-based bundling are, among others,the most influential levers.
However, OEMs must be ready to transform their marketing and sales functions in HQs and national sales companies to benefit the most from our approach and make results sustainable in the long term.