After market, also known as ‘aftermarket’, is a term used to refer to the buying and selling of goods or services which are related to, or complementary to, a specific product, after the product has been sold and delivered.
It is a subset of customer service, and is often associated with the automotive industry, but it can apply to any customer relationship.
After market activities include the sale and installation of extras, spare parts, upgrades, accessories and services to customers who have already purchased the main product, such as car repair shops, or the sale of parts and consumables for a specific product, such as ink or toner for a printer.
It is a broad term which not only covers any extras or services linked to a product, but also covers customer service, such as call centres, customer education, warranties and technical support, as well as the sale of additional products, such as consumables, which relate to the initial product.
After market can be thought of as the "afterlife" of a product. It is an important part of the service around a product and usually consists of activities to meet the specific needs of the customer. It is important to the customer journey and allows customers to upgrade and extend the life of a product; it is a chance to turn customers into life-long customers.
What Does After Market Involve?
After market CRM (Customer Relationship Management) initiatives focus on customer retention and increasing lifetime customer value (LCV) by developing relationships with existing customers and engaging with them in a way that increases customer loyalty and brand loyalty.
Activities could include providing travel mugs or vouchers for free products to customers who purchase particular items; running customer loyalty programmes or customer satisfaction surveys; offering limited editions or collector’s items to customers; or offering special services such services such as product tutorials or home phone installation.
After market activities are also seen in buildings and technologies that are ancillary to a core product.
For example, in the case of a car dealership, after market activities could include a performance shop which provides customers with tuning and customization options such as custom exhaust systems and enhanced braking components; an accessory shop which provides accessories and customisations such as custom paint jobs and wheels; a repair shop which provides basic maintenance such as oil changes and tire rotations; or a service counter which provides customers with additional services such as roadside assistance and towing services.
What Are the Benefits of After Market?
After market activities help to extend the lifetime of a product and can increase customer loyalty and retention, which in turn leads to higher lifetime customer value (LCV).
Research has found that customers who are given additional products or services are more likely to return and purchase products or services from the same company in the future. The development of relationships with customers by providing them with additional services and benefits is also likely to increase goodwill and brand loyalty.
Additionally, after market activities can also generate additional revenue for businesses. For instance, service counters can generate additional revenue through roadside assistance and towing services; aftermarket accessories can also generate additional revenue through customized paint jobs and enhanced brake systems; and performance shops can generate additional revenue through customized exhaust systems and other performance enhancements.
This makes after market activities an important element of customer service, as they enable businesses to engage with customers, increase customer loyalty and retention, and generate additional revenue through aftermarket activities.
What Are the Best Practices for After Market?
When planning an after market initiative, businesses should consider their customer value proposition and the customer’s individual needs.
Different types of customers may require different types of aftermarket activities and services.
For instance, customers who are looking for basic maintenance services such as oil changes and brake repairs may require a service counter; customers who are looking for enhanced performance and customised options may require a performance shop; and customers who are looking for additional accessories and customised paint jobs may require an accessory shop.
Businesses should also consider the customer journey when developing aftermarket activities and services, as this will help to ensure that the customer experience is positive and that the customer’s needs are met.
Businesses should promote aftermarket activities and services to existing customers, and also consider ways in which to attract new customers. Offering additional benefits such as discounts and promotional offers on aftermarket activities, is a good way to incentivise customers to use the service and to attract new customers.
Additionally, businesses should consider ways to measure the success of the aftermarket activities and the customer experience. This will enable businesses to monitor customer satisfaction, identify areas that require improvement, and make adjustments and changes to ensure that customers are happy and that aftermarket activities are achieving their desired goals.
Monitoring customer satisfaction through surveys, feedback and reviews is also important, as this will help businesses to improve their aftermarket activities and services, and ensure that customers are satisfied.
Businesses should ensure that their aftermarket activities and services are of high quality, as this will ensure that customers’ expectations are met, and that customers remain satisfied with the service and will continue to purchase additional services and products from the business.
A well-thought-out and well-executed after market strategy is essential for businesses to ensure customer loyalty, increase their customer lifetime value, and generate additional revenue through aftermarket activities and services.
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Additionally, after market activities can also generate additional revenue for businesses. For instance, service counters can generate additional revenue through roadside assistance and towing services; aftermarket accessories can also generate additional revenue through customized paint jobs and enhanced brake systems; and performance shops can generate additional revenue through customized exhaust systems and other performance enhancements.
This makes after market activities an important element of customer service, as they enable businesses to engage with customers, increase customer loyalty and retention, and generate additional revenue through aftermarket activities.
What Are the Best Practices for After Market?
When planning an after market initiative, businesses should consider their customer value proposition and the customer’s individual needs.
Different types of customers may require different types of aftermarket activities and services.
For instance, customers who are looking for basic maintenance services such as oil changes and brake repairs may require a service counter; customers who are looking for enhanced performance and customised options may require a performance shop; and customers who are looking for additional accessories and customised paint jobs may require an accessory shop.
Businesses should also consider the customer journey when developing aftermarket activities and services, as this will help to ensure that the customer experience is positive and that the customer’s needs are met.
Businesses should promote aftermarket activities and services to existing customers, and also consider ways in which to attract new customers. Offering additional benefits such as discounts and promotional offers on aftermarket activities, is a good way to incentivise customers to use the service and to attract new customers.
Additionally, businesses should consider ways to measure the success of the aftermarket activities and the customer experience. This will enable businesses to monitor customer satisfaction, identify areas that require improvement, and make adjustments and changes to ensure that customers are happy and that aftermarket activities are achieving their desired goals.
Monitoring customer satisfaction through surveys, feedback and reviews is also important, as this will help businesses to improve their aftermarket activities and services, and ensure that customers are satisfied.
Businesses should ensure that their aftermarket activities and services are of high quality, as this will ensure that customers’ expectations are met, and that customers remain satisfied with the service and will continue to purchase additional services and products from the business.
A well-thought-out and well-executed after market strategy is essential for businesses to ensure customer loyalty, increase their customer lifetime value, and generate additional revenue through aftermarket activities and services.