Since the inception of the “Sharing Economy” by companies like Airbnb and Uber to the successful BlaBlaCar and Getaround (ex. Drivy) in Europe, sharing owned assets has become commonplace for many consumers. This trend is now making headway in B2B markets, particularly in the construction industry. Read Part 1 of this series to learn the impact of the Shared Economy on market players in the construction equipment industry.
The Sharing Economy in the construction equipment industry offers opportunities to market intermediaries by increasing accessibility to the potential market, allowing for fleet optimization, and providing payment certainty. The new model in the B2B sector will likely boost demand by facilitating access to equipment but may also create a contraction of traditional business models. For example, Airbnb facilitated access to temporary housing, but created competition for traditional hotels. Market players should prepare their organizations for these changes. Managing Director of Heavy Equipment in EMEA, Audrey Courant outlined some ideas for construction equipment businesses to consider below:
- Think customer segmentation. Different customers have different needs and expectations; product and service offerings should be tailored to each customer group. Identify the different segments of your customer base via a cluster analysis, a key element of defining an efficient marketing mix strategy.
- Understand your customers’ purchasing experience and journey in detail. From information gathering to actual rental experience, detect touch points and pain points for your customers. This will allow you to identify actions that will lead to differentiation, customer base retention, and market growth.
- Think value-added services to differentiate from traditional competition and online rental platforms: from the ability of offering a full range of products – including green equipment – to consulting services smart site management
- Develop a tailored digital strategy. In order to maintain the connection with customers throughout the customer experience your company will need an in-depth digital strategy.
DuckerFrontier’s Heavy Equipment team is at the forefront of key trends impacting the industry. Our experts are constantly monitoring changes in the industry to provide clients with the most impactful insights. How can we help you deliver better outcomes for your business? Contact us to connect with an industry expert.