The old adage, “Happy customers tell three people, and unhappy customers tell ten,” has become very outdated, with unhappy customers complaining to millions via Twitter, Facebook, Snapchat, etc. As the airlines learned this year, one negative customer experience can not only go viral on social, it can wind up as the headline of the five o’clock news. And don’t think this can’t happen to technology support as well. We’ve seen videos of repairmen sleeping in a customer’s living room, and heard recordings of support technicians who lost their temper, all broadcast to the world via social media.
Behind TSIA Research,
Social Engagement Rating (SER)
TSIA has recently had a lot of inquiries from our Professional Services membership community, which have all been various forms of the same question: “Is there any data showing the business benefits and impact a dedicated Services Sales team has on key professional services metrics?” In a related follow-up question, these members also ask for data points and content that they can use to help justify investing in a dedicated sales resource for professional services. With so many similar questions routinely cropping up from professional services, just what’s going on in the industry to prompt this need?
professional services sales
At most technology companies, Services teams interact with customers at a rate of 5-15 times as often as their Sales counterparts. TSIA member companies are utilizing expand selling best practices to leverage these interactions to generate hundreds of millions of dollars in qualified upsell and cross-sell opportunities with their existing customers.
This past spring, TSIA launched an in-depth survey on the practice of generating leads through Services touchpoints. It was the first study to go into depth around the practices and key metrics that are most tightly connected with success in this effort. While the specific findings of the survey are only available to TSIA members, I’d like to share one of the more interesting pieces of information that came to light from the survey data. We discovered how remarkably low-cost these Services-generated leads are. In the hopes of helping companies like yours understand what an incredible opportunity there is to be had in this area, we’re making this cost-of-lead data public.
Digital transformation has traditionally centered on customer-facing parts of the organization (the contact center, online self-service, mobile apps, etc.), but that’s changing. Increasingly, that focus is spreading into back-office functions and the broader enterprise as a way to digitize and optimize the entire customer journey. In fact, according to a March 2017 Digital McKinsey post titled, "Putting Customer Experience at the Heart of Next-Generation Operating Models," they say, “The benefits of improved customer experience can be fleeting unless changes to supporting back-end operations are made as well.” The article also goes on to state, “Delivering a great customer experience calls for disciplined execution and consistent service delivery.”
TSIA experts are coming to Vienna, Austria this fall to share industry best practices and our latest research in the area of support services, including partner channel management, support metrics, outsourcing, funding, and more in our 2017 International Support Services Summit. Senior support services leaders are invited to attend this information-packed, full-day event. Space is limited, so be sure to reserve your spot and join us September 13!
In my last blog I focused on the positives of building recurring revenues by offering technology solutions in an “as-a-service” model from the supplier perspective. This post and ones before it are part of an overall blog series about why vendors in high tech, industrial automation, medical equipment and other market sectors are moving rapidly toward subscription-based offers. But
“Navigating the World of Recurring Revenue Offers” is not the kind of story that is all good news. There are real challenges that suppliers face in deciding to head in this direction. Management needs to deftly navigate these obstacles, or else they may not be around long enough to reach their objective of a profitable, high-growth, recurring revenue business.
The Recurring Revenue Journey
In my role as TSIA’s technology research analyst, I cover 42 different technologies across our 8 areas of research. But when you look at the inquiries I receive from members, over half are related to knowledge management, self-service, and improving collaboration with both employees and customers. Spending on knowledge management is very high as well, with 68% of support services members planning additional investments in the next 1-2 years. To better understand emerging trends and pacesetter practices, each year I conduct a knowledge management survey.
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Whether you’re a product leader with born-in-the-cloud software and/or hardware technology or are currently working on getting there, the ProductNEXT summit is for you! Come to the ARIA Resort & Casino on October 26, 2017 for this immersive one-day event all about developing your playbook for profitable subscription offers that will also delight your customers.