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In fact, according to a recent study by the Aberdeen Group, reduced product margins in today's slowing economy are placing added pressure on companies to sell more services. Service contracts, which have been historically overlooked by many manufacturers, are now being viewed more than ever before as important new revenue generators.
Beyond providing substantial repeatable revenue streams, service contracts also play an integral role in connecting manufacturers with their channel partners and end customers. Yet when it comes to services, the greatest challenge that vendors face is not improving the quality of their service offerings, but improving the quality of the business intelligence used to effectively reach customers in order to sell those service offerings.