5 Common OEM Service Mistakes (And How to Fix Them)

1. Relying Too Much on Dealers for Service

The Mistake

Many OEMs assume that dealers will deliver a consistently excellent service experience. But the reality is that once equipment leaves the factory, OEMs lose visibility into the service process. If a dealer fails to provide fast, high-quality support, the customer blames the OEM—not the dealership.

Why It Hurts

• Brand Loyalty Suffers – Customers don’t separate the dealer from the manufacturer. A slow repair or poor customer service reflects directly on your brand.
• Lost Revenue Opportunities – OEMs miss out on valuable after-sales revenue (parts, maintenance contracts, and extended warranties) when dealers control the service experience.
• Inconsistent Quality – Some dealers may excel in service, while others may cut corners. Without oversight, OEMs have no way to enforce quality standards.

How to Fix It

✅ Implement OEM-Controlled Service Programs: Establish a manufacturer-branded service network or OEM-backed service plans that dealers must adhere to. This ensures quality consistency and allows you to capture service revenue.

✅ Increase Service Visibility: Deploy a digital service management platform that provides real-time insights into service requests, response times, and completion rates across your dealer network.

✅ Follow Up Directly with Customers: Use automated post-service surveys and follow-up calls to ensure satisfaction and address any issues before they turn into complaints.

By taking a more active role in after-sales service, OEMs can maintain brand control and improve customer satisfaction, ultimately driving more repeat business.

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2. Failure to Capture & Utilize Service Data

The Mistake

Many OEMs lack a structured system for collecting, analyzing, and leveraging service data. Without it, you’re missing insights that could drive efficiency, improve product design, and increase service revenue.

Why It Hurts

• No Predictive Maintenance – Without service data, you can’t proactively identify failure trends and prevent breakdowns before they happen.
• Lost Upsell Opportunities – If you don’t track service frequency, parts usage, and failure rates, you miss out on opportunities to upsell maintenance plans or replacement parts.
• Slower Product Improvements – Service data should inform R&D and product design, helping manufacturers build better, more durable equipment.

How to Fix It

✅ Centralize Service Data Collection: Use a cloud-based system that aggregates all service requests, warranty claims, and repair histories across dealerships and service providers.

✅ Leverage AI & Predictive Analytics: AI-powered tools can analyze failure patterns and help OEMs predict which components are most likely to fail—allowing you to alert customers before a breakdown occurs.

✅ Turn Insights into Revenue: If data shows a common failure at 5,000 hours, offer customers an automated service reminder and discount on preventative maintenance.

By owning and utilizing service data, OEMs can shift from reactive to proactive service, increasing uptime for customers and revenue for themselves.

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3. Inconsistent Customer Service Across Dealers & Regions

The Mistake

One dealer provides exceptional service, while another leaves customers waiting weeks for a repair. Without consistency, customers receive wildly different service experiences, leading to frustration and a lack of trust in the brand.

Why It Hurts

• Customers Lose Trust – A single bad service experience can push customers to consider competitor brands for their next purchase.
• Harder to Enforce SLAs – OEMs struggle to enforce service-level agreements (SLAs) when there’s no direct oversight of dealer operations.
• Brand Reputation Takes a Hit – Poor service experiences, even at a dealer level, result in negative online reviews that damage brand credibility.

How to Fix It

✅ Standardize Service Guidelines: Implement a dealer certification program that sets minimum service quality standards for repairs, response times, and customer communication.

✅ Monitor Dealer Performance: Use a service tracking dashboard to compare dealer performance across metrics like repair turnaround time and customer satisfaction scores.

✅ Reward High Performers & Support Underperformers: Offer incentives for top-performing dealers and additional training for those who fall behind.

By creating a consistent service experience across regions, OEMs strengthen brand trust and improve customer retention.

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4. Not Offering Proactive Maintenance Plans

The Mistake

Many OEMs take a reactive approach to service—waiting for customers to contact them when something breaks, rather than proactively offering maintenance solutions.

Why It Hurts

• Customers Delay Service – Without reminders or bundled maintenance plans, customers may skip service, leading to expensive failures.
• Lost Long-Term Revenue – Maintenance contracts provide a steady stream of recurring revenue, but many OEMs fail to capitalize on them.
• Lower Equipment Uptime – Proactive service ensures fewer breakdowns and keeps customers’ equipment operational longer.

How to Fix It

✅ Offer Prepaid Maintenance Packages: Bundle maintenance into equipment financing or lease agreements, ensuring repeat service visits.

✅ Automate Service Reminders: Send email and SMS reminders based on hours of operation, usage history, and past service records.

✅ Provide Value-Added Remote Monitoring: Leverage IoT and telematics to track equipment health in real-time, triggering alerts when service is needed.

By integrating proactive service plans, OEMs create a more predictable revenue stream while ensuring equipment longevity and customer satisfaction.

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5. Lack of Digital Tools to Coordinate Service Delivery

The Mistake

Relying on outdated scheduling systems, manual processes, and phone and email based service requests leads to delays and inefficiencies in service delivery.

Why It Hurts

• Longer Downtime for Customers – Manual scheduling and approvals delay repairs, reducing customer satisfaction.
• OEMs Lack Real-Time Visibility – Without digital tracking, OEMs don’t know which service requests are pending, completed, or overdue.
• Dealers Operate Less Efficiently – A lack of automation means service teams spend more time on administrative tasks instead of repairs.

How to Fix It

✅ Implement Digital Service Scheduling: Provide an online portal where customers can book service instantly.

✅ Deploy a Service Management Platform: A centralized system allows OEMs, dealers, and customers to track service requests in real-time.

✅ Automate Parts Ordering & Approvals: Reduce downtime by digitally linking service requests to parts availability and warranty approvals.

A streamlined digital service experience enhances efficiency, reduces downtime, and increases customer confidence in the OEM’s reliability.

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Conclusion: Own Your Service, Own Your Future

By addressing these common service mistakes, OEMs can turn after-sales service into a profit center, not a cost center. Proactive service management, data-driven decision-making, and digital coordination will drive stronger customer loyalty and increase revenue in the long run.

It’s time for OEMs to take control of their service delivery. The brands that lead in service will lead in customer retention—and ultimately, long-term profitability.