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Blog : Service Drives Business Outcomes

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Service Drives Business Outcomes

By Tom Sweeny June 25, 2022

Delivering services leads to greater alignment between products sold and the value customers derive from using them, while subsequently decreasing the likelihood of customer churn and loss of recurring revenue.

Although products often form the basis of a customer-vendor relationship, services are the foundation from which post-sales customer relationships are built and sustained. Services are a natural extension to core product features and offer access to the expertise, skills, and resources necessary that drive customer value.

The Majority of Revenue Comes from Existing Customers

Retention is Key to Growth

If churn is high, too much revenue is lost. Existing customer relationships offer a considerable opportunity to grow revenue. Generating revenue from existing customers is often easier than landing entirely new logos (which is also important).

Consider the connection between services and business outcomes:

  • Helping customers to adopt products leads to higher use and less-defection.
  • Removing obstacles to product use through Support increases satisfaction and accelerates adoption.
  • Expert advice and coaching can accelerate customers’ time-to-value.
  • Success planning can drive consumption and result in higher demand for new products and services.
  • Account management can identify and mitigate customer churn risks, plan for renewals, and identify expansion opportunities.

The connection between service and business outcomes is clear. Good service retains customers and creates opportunities for growth. Poor service places customer relationships at risk and diminishes growth potential from the installed base.

How to Be Successful with Services

The connection between service and business outcomes is clear.

Good service retains customers and creates opportunities for growth. Poor service places customer relationships at risk and diminishes growth potential from the installed base.

This guide introduces the key factors for maximizing success with services including:
  • What it means to be successful with services.
  • How service contributes to business outcomes.
  • Metrics required to measure service performance.
  • Required responsibilities, organization, and collaboration.
  • Core service capabilities and maturity levels.
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