The author provides a real-life example of his company, Hardwarewartung 24, which managed to reduce CAC and become profitable by optimizing SEO, SEM, and performance marketing, and implementing AI for customer communication. He suggests that TPMs can grow by pivoting their strategy towards SMBs, reducing CAC through digital marketing and AI, enhancing customer lifetime value, and focusing on channel sales. He concludes that TPMs that adapt strategically can capture a significant market share and ensure sustainable growth in the hardware maintenance market.
Key takeaways:
- The third-party maintenance (TPM) industry, an alternative to OEM services, has been growing consistently with a projected CAGR of 14.52% until 2028. However, it still accounts for only 3.45% of the OEM maintenance market share.
- Despite its growth, the TPM industry faces challenges such as market saturation among large organizations, intensified competition, and stagnating growth and lower gross profit rates.
- The small and medium-sized business (SMB) market, which comprises 80% of the maintenance market, remains largely untapped by the TPM industry due to high customer acquisition costs.
- For TPM providers to grow, strategic shifts are required such as a reduction in customer acquisition costs through digital marketing and AI, enhancing customer lifetime value, and focusing on channel sales to reach SMBs.