Service Revenue Growth
When growing your service revenue, you have two unique audiences: Your existing customers and your potential customers. You also have the opportunity to sell your existing and newly developed services. Each combination provides different opportunities and deserves separate treatment.
Existing Customer/New Services
- They know and trust you
- You understand their business and their desired outcomes
- You can accelerate time-to-value and full adoption
- Easier to integrate new services before they are in full production
Existing Customer/Existing Services
• Opportunity limited to people who did not purchase in the past
• Should be small portion of your installed base
This table illustrates the relative benefits of creating a unique service/customer combination.
Potential Customer / New Services
• You know their key issues
• You can accelerate time-to-value and full adoption and then exceed expectations
• Easier to integrate new services before they are in full production
Potential Customer / Existing Services
• Expect historical results
• If selling at time of sale, may face discount or “free” pressure from customer or Sales team
Capital Equipment Service Portfolio
(Including Contracts)
A special area of expertise for Middlesex Consulting is Capital Equipment Service Contracts – revitalizing existing contracts and developing and commercializing new contracts. These contracts are a major portion of many capital equipment manufacturing company’s annual profits. Here is a description of our methodology, used to help numerous clients get their contracts right. This means defining the attributes of a service contract that appeals to a target subset of all customers.
Our Services Growth Methodology
CASE STUDY
The Problem
• The client decided they needed to begin offering value-added services to differentiate themselves from the competition and to increase revenue.
Our Actions
• We visited a number of key accounts and had wide-ranging discussions with the decision-makers.
• We identified a number of potential value-added services that the organization could reliably deliver and determined the potential costs and income for the client.
• We helped create the internal product plan and sell it to the Executive Committee.
The Results
• The plan was agreed and implemented. The first service was disaster recovery for a mission critical product.
• When a natural disaster occurred, the client jumped into action and exceeded their client’s expectations.
• Revenue and costs met plan and the publicity from the actions during the disaster generated additional new product sales. The sales included the disaster recovery service.