Typically your servo, stepper or pancake motor incurrs damage
due to an overloaded system, causing a high current fault. This
high current spike will cause the magnets in your motor to become
demagnetized. Once demagnetized your motor may run, but with
diminished torque. Under full load your system will fail.
Another scenario in which damage is incured is by opening the
stepper or pancake motor. There is a specific air gap between
the magnets in the stator and the rotor itself, if this air
gap is lost (ie. by the removal of the rotor) demagnetism will
occur.
By magnetizing the rotor after assembly, a high flux density
is obtained that can be largely destroyed if the rotor is removed.
Thus
by re-magnetizing your servo motor, stepper motor or pancake
motor you will be assured that your motor will have the same
torque output as it did when shipped from the manufacturer.