Servitization of products business model

The servitization of products business model is when a company goes beyond just selling a product and also offers additional services to their customers. It's like when you buy a toy and it comes with batteries, or when you get a free balloon when you go to a store.

For example, let's say a company sells machines that manufacturers use to make things like cars or appliances. Instead of just selling the machines and being done with it, the company might offer to also provide maintenance, training, and even help the manufacturer optimize their production process. This means the customer doesn't have to worry about fixing the machine or training their employees on how to use it - the company takes care of everything.

This model benefits both the customer and the company. The customer gets a more complete solution, and the company gets recurring revenue from ongoing services. Additionally, by offering these services, the company can also build stronger relationships with their customers and gain a deeper understanding of their needs.

Overall, the servitization of products business model is all about providing more value to the customer and building long-term relationships through ongoing services.