Appetites for sustainable products are only growing, driven by a warming planet and the looming regulations designed to achieve net-zero emissions. You know it, your customers know it, and your competitors definitely know it. Around the world, companies are scrambling to adapt to this new reality without sacrificing profits — to retain their customers and meet climate regulations without hurting their bottom line.
But what if addressing the greatest challenge of our time could also empower your business to capture untapped revenue and a larger share of this evolving market?
It’s time to rethink sustainability because electrifying your products and improving the efficiency of your operations does more than benefit the planet; it opens new revenue streams, generates savings, and ensures customer loyalty for your business. This holistic embrace of sustainability goes straight to your bottom line, enabling long-term investment that pays off in the short term while empowering you to achieve your net-zero goals.
Over the next decade, your competitors will certainly capitalize on this opportunity. By quickly and intelligently electrifying your own products and operations, you can not only keep pace in your industry but leapfrog your competition and secure your future leadership position, regardless of your current progress toward sustainability.
Becoming an Essential Partner to Your Customers
Your customers are in the same situation: attempting to pivot their business to meet climate regulations and evolving appetites without sacrificing profitability. By electrifying your own products, you can become the essential partner they need to make that transition quickly and affordably, smoothing their path to net zero.
In the short term, think of it as an opportunity to either establish or re-establish your value. Over the next few years, your customers — and potential customers — will rely more and more on solutions that ease their own sustainability journey, enabling them to get to market faster and capture a larger market share. Companies that offer simple and universal sustainability solutions will showcase their reliability and versatility in tackling new challenges, while companies that ignore this opportunity will find themselves shut out of the market.
In the long term, consider this: Not every customer will make the transition at the same pace. Some will inevitably improve their entire product lines within a few years, but others will evolve over time, electrifying their products to varying degrees based on opportunity and available capital. By accommodating both scenarios, you’ll maximize your own market share and secure repeat business opportunities.
Giving Old Products New Life
Making this transition doesn’t necessarily mean scrapping your current products. Retrofit solutions that electrify your traditional designs can still make a huge difference toward your customers’ net-zero goals.
To truly maximize this approach, you can pass the “burden of electrification” onto a partner who has already invested the necessary time and resources into developing a retrofit solution. This way, you can minimize your own developmental costs while dramatically reducing your time to market, allowing you to overtake your competition and capture a larger share of this newly emerging market.
At the same time, you can further enhance energy efficiency through automation and controls, essentially reinventing your products without altering your core operations. By transforming your “dumb,” disconnected install base, you’ll unlock insights into performance that can inform your design of future products. You’ll also be able to track when your customers will need replacement parts, allowing for a more strategic approach to the after-market segment of your business that maximizes potential revenue.
Automation and controls also open up an entirely new business model that can transform the way you interact with your customers and generate revenue. This subscription-based XaaS model, with “X” standing for your business’s specialty, will guarantee repeat business that will yield higher profits over time.
For example, a company that has historically built and sold air compressors could electrify their product, add automation and controls, and then charge their customers for the amount of used air, as opposed to simply selling a standard combustion-powered machine and then losing out on any additional revenue. This business model also guarantees a continued interest in your newest and most efficient products.
Optimizing Your Operations
Customers that are searching for sustainable solutions are more likely to partner with vendors that incorporate these ideas into their own business model. By upgrading your business with technology for sustainable operations, you can capture more of this growing customer base.
In fact, many of the same elements that can give your products new life — such as more efficient motors, electric batteries, automation, control systems — can improve your own energy efficiency, generating savings that can fund additional product improvements. This creates a circular effect where new savings drive more investment, which leads to more savings and even more investment, and can set you up for success for years to come.
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