User login

Knowledge & tools for services marketing & sales

Case Studies

Can Discounts Lead to Higher Service Sales?

A ServicesRevenue Business Case

Lee Williams had an idea what Pete Shortsyte, the senior vice president of sales, wants to discuss when he asks Lee to join him for lunch later in the day. The vice president says he wants to discuss a service pricing discount request from one of his field account managers. He also indicates an interest in exploring various strategies for increasing support contract sales in general.

Can Discounts Lead to Higher Service Sales? Tom Brown's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Case Studies or Relevant Links Lee should not acquiesce to Pete’s request. Here’s what customers are saying: Business value is what it’s all about.  The best way solution providers can be helpful to customers is to understand their business.   It is often too easy for Sales to discount services for several reasons. Sales are either not incentivized on selling support plans or they receive very little commission on them. They rarely discount software on which they receive full commision. The value of support is rarely communicated effectively to a prospect during the sales cycle - it’s all about selling software. Support is an afterthought.

Can Discounts Lead to Higher Service Sales? Manish Mehta's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Case Studies or Relevant Links Working with the sales manager and customer team, Lee should study the kind of support the customer really needs. If the customer requires less support than what the company normally offers, then reducing the value of services offered can lower services’ price contribution to the whole deal. Doing so helps maintain contract margin.

Do You Offer Your Own Or A Vendor’s Brand Of Services? Bill Raymond's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links In my view, Roni should consider a few fundamental factors that drive business. A service brand is one of them. What people really buy from suppliers, particularly suppliers of services, is confidence. That is, the confidence that the supplier of choice will do the job the way the buyer expects it to be done.  Brand plays a very important role in the selection, because it serves as a proxy for quality. Buyers trust certain service brands. If a brand indeed has a connotation of quality, this can go a long way to insure getting the business. 

Do You Offer Your Own Or A Vendor’s Brand Of Services? Trevor Estelle's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links I would brand the “Alexandria” brand as a solution. Roni Martino probably knows from experience that customers want solutions, not the ABX brand. They will crawl through sand to get it. The only concern is the relationship with ABX. If ABX has any sort of vision, they will realize that encouraging integrators to brand their own solutions is a win-win all around. Small and medium-size businesses without an IT department cannot tell a hub from a switch. They just want the solution and an end benefit. They could care less about the manufacturer’s brand. It is the solution provider’s job to research the requirements and recommend a brand.

Do You Offer Your Own Or A Vendor’s Brand Of Services? Greg Corrigan's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links That brands matter to service providers is well established. When multiple service providers collaborate to serve the same customer, distinct brands support the combined value proposition. Roni is justified in insisting on building an Alexandria brand and ABX should not view a strong Alexandria brand as a threat. Rather, ABX should encourage it. At PHH Arval, one of the world’s leading fleet management companies, we provide services related to managing vehicle fleets: acquisition and financing, fuel management, maintenance and repairs, accident management, registration renewals and disposal.

Do You Offer Your Own Or A Vendor’s Brand Of Services?

A ServicesRevenue business case. As he glanced at the ABX proposal he found in his in-box, Roni Martino wondered why he was on the review list. He suspected an oversight by someone and lamented his misfortune that his own organization, Alexandria Systems, missed the opportunity to submit its proposal. Roni proceeds to Kate Wienbacker’s office to explore the issue further. Kate welcomes him and sees the proposal in his hand. “So, what do you think of the proposal draft?” says Kate with a proud and eager tone. “Are you saying we wrote it?” replies Roni with a surprised look. “We sure did. The opportunity is too good to pass up,” asserts Kate who now senses her boss’ confusion. “Then why is ABX’s logo on the cover instead of ours?” asks Roni.

Should You Outsource Services Selling? John Masterson's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links Pierre’s quickest path to results is via outsourcing. He obviously faces different risks with both DirectSell and SalesOne. Pierre should choose the outsource provider who has the best chance to minimize his overall risks. Based on my current experience with a small outsource provider, I recommend that Pierre go with SalesOne.

Should You Outsource Services Selling? Diane Brundage's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links Pierre’s challenge raises two questions. “Why outsource inside sales?” and “Which outsource provider is best?” Companies with mature services have discovered the payoff that results from dedicating resources to selling services. In their view, services reinforce customer loyalty and are an important, recurring revenue stream. Service organizations that haven’t yet proven their financial value to their companies face this dilemma: they can’t justify dedicated resources without a proven business model and they can’t prove the business model without the dedicated resources.

Should You Outsource Services Selling? Barbara Bakich's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links First and foremost is how services are perceived within an organization. If services are not a priority at the corporate level, then no matter what avenue Pierre takes, services will not be successful. If the net benefit of services to an organization – contracts’ annuity stream for example - is not recognized, then Pierre is doomed to fail.
Syndicate content