Landing new customers will always be an important part of growing your business, but what happens after they've been on-boarded? Tech companies invest a great deal of time and money in sales and marketing initiatives to capture net new business, but often overlook the chance to exploit revenue opportunities from their customer base. This infographic takes a look at how investing in expand selling capabilities can unlock lower-cost accelerated revenue growth from existing customers.
In A Tale of Two Cities, Charles Dickens wrote about life in London and Paris during the French Revolution. The story included this iconic opening line:
"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, ..." A Tale of Two Cities, Charles Dickens
The same could be said today for industrial equipment companies trying to survive the “Internet of Things” revolution. While it is a time of opportunity for the industry, many companies will not make the transition to the new business models.
The way customers are consuming technology is rapidly changing, and more attention is being paid to how suppliers are able to provide outcomes, rather than just products and services. While this industry-wide transformation is impacting everybody, not everyone will be impacted at the same rate. Professional services organizations still receive the majority of their revenues from Level 2 offers, but there is a way to ease into Level 3 and Level 4 outcome-based models by focusing on customer adoption.
Successful expand selling depends on sales, services, and customer success functions working together to cost-effectively accelerate revenue growth with existing customers. (Tweet this!) Marketing, services product management, and account management all have important roles to play as well. Fortunately, expand selling is not a “zero sum” game, where one function has to lose in order for another to win, but an investment and optimization opportunity that can benefit your organization as a whole. Here are some of the ways that collaboration between different organizational functions can affect your company’s expand selling potential.
In previous posts in this ten-part blog series, we introduced the remote services continuum with a look at service efficiency and process optimization, and ended with a warning that this will not be enough to meet future business challenges. As customers continue to insist that suppliers move towards a Level 3 and Level 4 business model, finding new ways to save customers money and improve their business outcomes will determine the long-term success of technology companies. This is where the true opportunity of the Internet of Things resides.
In Q1 of 2015, the market gave off very mixed signals about the state of the global tech economy. The short story is that tech company revenues are down, and as a whole, our industry is shrinking. But there are some bright spots. Technology services produced another solid quarter of financial performance and continues to represent tremendous growth potential for our industry. I’d like to share a brief overview of how things played out in the public data compared to one year ago and importantly, what tech companies can do to recapture profitable growth.
When optimizing your products and services for increased adoption, you can easily find yourself too close to the situation to fully understand how your customers are using them effectively. The best way to get a detailed look at how your technology is being consumed, and even where it can be improved, is to ask your users directly. While the input of your average user is always valuable, there’s a subset of customer whose help you should be leveraging in order to unlock your solution’s full potential: the “power user”.
J.B. Wood, TSIA’s President and CEO, recently spoke at the Gainsight Pulse Conference about the role of customer success in the technology industry. Watch the full video of his powerful presentation, “How Technology and Big Data are Reinventing the Customer-Supplier Relationship.” (Tweet this!)
TSW conferences are a great way to stay current on the best practices for improving your overall operation. All of the keynote presentations from TSW 2015 Best Practices are now available to view online, (Tweet this!) where you can tap into valuable insights shared by some of the most brilliant minds the technology services industry has to offer.
Copyright 2015 by TSIA. All rights reserved. Reproduction in whole or in part without permission is prohibited. Inside Technology Services is an editorial blog published by TSIA, with contributing authors submitting regular editorial content. Opinions expressed by contributors are not necessarily those of TSIA. Although carefully verified, data are not guaranteed as to accuracy or completeness. TSIA cannot be held responsible for any direct or incidental loss by applying any of the information in this publication. The third-party trademarks appearing within are the property of their respective owners. All other trademarks appearing herein are the property of TSIA or its affiliates.