Blog · Forecast and pipeline · Industrial manufacturers
How an industrial manufacturer builds a service contract calendar from the installed base register: units by warranty end date and contract end date per customer, the attach rate for units in their first year off warranty from the manufacturer's own history, the customers with units coming off warranty in the next two quarters and no contract offer logged, the value of a contract at the norm per unit, and why the call belongs to the service sales team before the parts desk hears from the customer.
A manufacturer's parts desk hears from a customer when a unit fails eighteen months after its warranty ended, and learns then that the customer has been using a third party. The installed base register knew eighteen months earlier that the warranty was ending and nobody offered a contract. This guide sets out the service contract calendar, the attach rate that says what the call is worth, and the list.
Per unit:
Warranty end = install date + warranty term for the model Contract end, where a contract exists State: under warranty, off warranty with contract, off warranty without contract
Per customer, per month:
Units coming off warranty; contracts ending; offer logged or not
From history:
Attach rate, offered in first year off warranty vs not offered
Customer identifiers only.
units = under warranty + contracted + uncontracted off warranty
Every unit in one state on any date. A unit with an install date after its contract start fails and is listed.
| Units off warranty, last three years | Offered a contract in year one | Attach rate |
|---|---|---|
| 2,100 | Yes | 58% |
| 1,400 | No | 9% |
Not causal; the customers offered may have been the likelier to buy. It is still a forty-nine point difference on the manufacturer's own units, and it is why the list is worked.
Next two quarters.
| Customer | Units off warranty | Models | Value at norm | Offer logged | Owner | List |
|---|---|---|---|---|---|---|
| 2207 | 14 | M-104 | $126,000/yr | No | SS-04 | Call now |
| 4471 | 6 | M-109 | $42,000/yr | Yes, 3 weeks ago | SS-11 | In progress |
| 9034 | 22 | M-104, M-227 | $190,000/yr | No | SS-04 | Call now |
Thirty-six units at two customers, over three hundred thousand dollars a year of contract at the norm, off warranty within six months, and no offer logged. Both belong to the same service seller.
The same calendar for contract end dates: renewals due per month, with the offer log, and the units' claim history beside each so the renewal conversation starts with the unit's record.
Register without warranty terms. No calendar.
The parts desk as the trigger. Eighteen months late.
Offers not logged. The list cannot say who was called.
Attach rate read as cause. It is an association; it is still the argument for the call.
Mapped once, the installed base register, the warranty terms, the contract register and the offer log produce the calendar, the states, the attach history and the list every month. Covirage builds this from the exports as they are. The industrial manufacturers page describes the setup, and the aftermarket attach guide covers what the contract, once signed, does to the parts and service measure.
Because that is when the customer decides how to maintain the unit: a contract with the manufacturer, a third party, or nothing until it breaks. The manufacturer's own history usually shows attach rates falling sharply after the first year, and the window is the year.
The annual contract value for a unit of that model and age among customers that hold contracts, from the manufacturer's own contract register. Applied to the units coming off warranty at a customer, it is the contract the service sales team is pitching, with a number.
Warranty term by model is usually a standard, applied from the install date. Where the install date is missing, the ship date from the sales ledger plus a stated commissioning lag is the fallback, labelled, and the register gap is its own list.