Success Marketing and Portfolio Management

Success Marketing and Portfolio Management

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Success Marketing and Portfolio Management

Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change, service, support, and success marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

Success Marketing and Portfolio Management

Technology service programs and offerings must evolve, and companies need to look beyond service marketing to focus on Success Marketing and Portfolio Management.

Success Marketing and Portfolio Management consists of the practices and activities necessary to create end-to-end, integrated success-focused programs capable of delivering a value-based message to promote adoption and attainment of tangible customer outcomes that sustain customer relationships and promote opportunities for growth.

The Subscription Impact on Service Programs

The very definition of technology service offerings is evolving.  Service entitlements that were once included as foundational elements of a service program may now be included as part of a product or subscription purchase. 

Standalone service programs delivered by siloed services departments such as Professional Services, Training and Support are increasingly offered through integrated success-focused service portfolios.  Success-focused service programs may complement or fully displace legacy service and support offerings. The nature of how customers purchase services is evolving too. Support programs attached to license sales and professionals service engagements sold as custom time and materials engagement are displaced by integrated a-la-carte success services that may be purchased as add-ons or obtained by service credits.

Success Marketing and Portfolio Management Defined

Success Marketing and Portfolio Management consists of the practices and activities necessary to create end-to-end, integrated success-focused programs capable of delivering a value-based message to promote adoption and attainment of tangible customer outcomes that sustain customer relationships and promote opportunities for growth.

There are eight fundamental success marketing practices.  Several of these practices extend the focus and scope of traditional service marketing responsibilities.  The expanded scope of Success Marketing must include the following:

  1. Customer Segmentation Strategy
  2. Ongoing Customer Needs Assessments
  3. Service Program Design Methods
  4. Portfolio Management
  5. Value Quantification
  6. Sales Enablement
  7. Marketing Tools and Resource Development
  8. Retention and Growth Planning

Support Pricing Benchmarks

Support Pricing Benchmarks

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered. The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium offer.

Support Program Price

The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium program.  Prices vary based on the entitlements offered and the ways that pricing is structured.  Here are a few considerations:

Net vs. List

Pricing may be based on the percent of a products’ list price or the net price after discounts.

Add-on’s and Fixed Fees

Some support program consists of a fee tied to the percent of product list or net price plus fixed fee add-ons.  Add-ons are often associated with optional entitlements such as named support resources such as designated support engineers and/or account managers.

Adjustment Fees

The price of support in the first year is often not the price a customer will pay in subsequent years.  Support prices typically include annual adjustment fees to account for inflationary factors.

Pricing by Support Program Tiers

Support pricing is typically established by program level or tier.  It is not uncommon for support portfolios to consist of two or more tiers with names like Silver, Gold and Platinum.  Although support programs may sound alike, they often vary from vendor to vendor.  For the purposes of establishing baseline pricing benchmarks ServiceXRG has normalized support programs into the four distinct tiers described below.  Classification is based on the underlying program entitlements and not on the program names.

Support Program Tier Classifications

Average Support Program Price

Establishing Support Prices

The price of support must be set at a level sufficient to cover delivery costs, yet not too high to discourage customers from buying.   Customers are likely to have preconceived ideas about what support should cost based on experiences they have with working with other technology vendors.  If your “gold” support is priced at 23% of product list price but other vendors are priced at 18%, customers may perceive that your prices are too high even though you offer more for the price. 

It is imperative that you price support reasonably so that you can make a compelling case that the benefits outweigh the costs to the customer.

Support Value Proposition

Setting the right price for support will influence your ability to sell and renew support programs.  As you consider price levels be cognizant of the support value proposition.  Support programs must include the entitlements customers want and need and be offered at a reasonable price level.

Are Your Support Offers and Pricing Competitive?

We can help you develop, modify, or price your support portfolio.  We provide best practices and competitive insights to help you build the Support programs your customers want.

Contact ServiceXRG today.

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Success Marketing and Portfolio Management

Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change service marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

read more

Treat Your Service Portfolio as a Product Line

Service and success programs are a significant source of revenue. To assure that they yield their maximum revenue potential, treat service portfolios as strategic offerings in the corporate portfolio by assigning dedicated program management resources.

read more

Support Pricing Benchmarks

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered. The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium offer.

read more

Support or Success – What Type of Post Sales Service Portfolio Do You Need?

Support and maintenance portfolios have been the foundation of many post-sales service offers, yet Support offers alone are no longer adequate to sustain and growth customer relationship value. Modernization of support portfolios and the evolution to customer success-focused programs and offers is the future of post-sales service portfolios. This article will help you to determine what type of post sales service portfolio you need.

read more

Selling Service Value

Selling the value of service is making the case for why the customer is better off with it than without. This article explores the 5 critical steps for establishing a credible and compelling service value proposition.

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Support or Success – What Type of Post Sales Service Portfolio Do You Need?

Support or Success – What Type of Post Sales Service Portfolio Do You Need?

It Is Time to Move Beyond Support Portfolios

Support and maintenance portfolios have been the foundation of many post-sales service offers, yet Support offers alone are no longer adequate to sustain and growth customer relationship value.  Modernization of support portfolios and the evolution to success-focused programs and offers is the future of post-sales service portfolios.

Support Versus Success

If you are creating or modernizing a post-sales portfolio that offers customers more than reactive problem resolution assistance you are likely building a success portfolio.

Success portfolios differ from support portfolios because they offer services typically beyond the scope of technical support and often include services and resources from departments such as Training, Professional Services and Technical Support.

The focus and intent of post sales services programs help to define the type of portfolio you are building and suggests what entitlements to package and offer to customers.  Use the table below to consider what the focus and intent of your post service offers should be.

Support

Success

  • Services focus on responding to, diagnosing and resolving issues.
  • Services are designed to increase supportability by helping customers use and administer products more effectively. 
  • Tools and services monitor issues and provide recommendations or corrective actions to mitigate problems.
  • Speed, effectiveness of response and customer satisfaction are key indicators of success.

 

  • Services focus on helping customers use the full functionality of a product. 
  • Consultation and guidance through high-touch and tech-touch.
  • Onboarding, adoption and success planning services offered.
  • Services focus on helping customers to achieve tangible business outcomes.
  • Product use, customer success, retention and growth of recurring revenue are key indicators of success.

 

Note: Success Portfolios often include support services, but Support portfolios do not include services beyond traditional issue resolution entitlements.

Characteristics of Leading Post Sales Service Portfolios

Well-defined post-sales service portfolios with up-to-date and customer-driven service entitlements can significantly increase your ability to help customers use and apply products.

Market leading service portfolios are well structured to offer differentiated service rights, entitlements, and resources to deliver maximum customer benefit.  World-class service portfolios offer:

  • Access to skills, resources and expertise from across all service departments including Support, Professional Services, Education and Success.
  • Flexible program structure and purchase options provide access to the services customers need when they need it even as their needs evolve.
  • Expert assistance to drive tangible outcomes and achieve quantifiable benefits for the price paid.

Take Your Services to the Next Level

Is it time to update your Support portfolio or add Customer Success programs extensions and add-ons? Give us a call. We can help you define, price, and launch successful new service offers.

Contact us today.

Related Articles

Success Marketing and Portfolio Management

Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change service marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

read more

Treat Your Service Portfolio as a Product Line

Service and success programs are a significant source of revenue. To assure that they yield their maximum revenue potential, treat service portfolios as strategic offerings in the corporate portfolio by assigning dedicated program management resources.

read more

Support Pricing Benchmarks

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered. The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium offer.

read more

Support or Success – What Type of Post Sales Service Portfolio Do You Need?

Support and maintenance portfolios have been the foundation of many post-sales service offers, yet Support offers alone are no longer adequate to sustain and growth customer relationship value. Modernization of support portfolios and the evolution to customer success-focused programs and offers is the future of post-sales service portfolios. This article will help you to determine what type of post sales service portfolio you need.

read more

Selling Service Value

Selling the value of service is making the case for why the customer is better off with it than without. This article explores the 5 critical steps for establishing a credible and compelling service value proposition.

read more

Selling Service Value

Selling Service Value

Selling the value of service is making the case for why the customer is better off with it than without. Selling services demands that you establish a credible and compelling value proposition.

The Guide to Selling Service Value

Selling services demands that you establish a credible and compelling value proposition. The value proposition describes the relationship between the price and benefits from the services a customer receives. To be compelling, the benefits must be perceived to exceed the cost. Service benefits may be intangible – insurance against risk, or tangible – a commitment of specific resources or attainment of a specific outcome.

Although difficult, it is imperative to quantify the value of all service benefits so that they can be compared to the price. A compelling value proposition is fundamental for successful sales and renewal activities. Selling the value of services requires the following:

 

  • Understand your customers’ needs and expectations from the product and services they buy from you.

  • Offer a robust portfolio of services. Not all customers will need or benefit from the same types of service so develop offerings that can align to the customer segments you serve.

  • Set reasonable prices for your offerings. This does not suggest that reasonable is low, but it must be justifiable. Customers must understand and agree that the benefits of service are consistent with the price they pay.

  • Create a clear and compelling value proposition.

  • Help sales channels and renewal teams understand the elements of the value proposition so that they can clearly articulate it to customers during sales and renewal activities.

Support Program Design, Competitive Analysis and Pricing Strategy

Support program design and pricing is challenging. Contact me to learn how ServiceXRG can help you determine if your service portfolio is up to date and aligned with customer needs.

  • Do you offer the right programs?
  • Is your portfolio Customer Success-Ready?
  • Do customers need more or less than what you offer?
  • How well is your pricing aligned with customer expectations?
  • What do your competitors offer and what do they charge?

Contact us now to learn how we can help develop and optimize support and services portfolio offers.

Chat with us (see link on right side of screen), send an e-mail to tsweeny@servicexrg.com, or use our contact form.

Featured: Selling Service Value

Selling services demands that you establish a credible and compelling value proposition. To be compelling, the benefits must be perceived to exceed the cost. This playbook describes the essential steps to develop a compelling value proposition to maximize support sales and renewal activities.

Login to get your copy.  Not a Member?  Learn more about our Service Success programs or contact us.

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Related Articles

Success Marketing and Portfolio Management

Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change service marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

read more

Treat Your Service Portfolio as a Product Line

Service and success programs are a significant source of revenue. To assure that they yield their maximum revenue potential, treat service portfolios as strategic offerings in the corporate portfolio by assigning dedicated program management resources.

read more

Support Pricing Benchmarks

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered. The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium offer.

read more

Support or Success – What Type of Post Sales Service Portfolio Do You Need?

Support and maintenance portfolios have been the foundation of many post-sales service offers, yet Support offers alone are no longer adequate to sustain and growth customer relationship value. Modernization of support portfolios and the evolution to customer success-focused programs and offers is the future of post-sales service portfolios. This article will help you to determine what type of post sales service portfolio you need.

read more

Your Support Value Proposition is Out of Date

In a subscription economy your support value proposition is likely out of date. If your value proposition is based on promising access to update and service level response its time to for support value proposition refresh.

read more

Top Reasons Why Customers Do Not Buy Services

Top Reasons Why Customers Do Not Buy Services

Why don’t customers buy services? Because they believe they do not need the coverage or that they do not feel that the costs outweigh the benefits. Selling the value of service is making the case for why the customer is better off with it than without. Selling services demands that you establish a credible and compelling value proposition.

Overcome Customer Objections

Selling the value of service is making the case for why the customer is better off with services than without. Selling services demands that you establish a credible and compelling value proposition to equip your sales channels with the knowledge and skills to overcome customer objections.

Top Reasons Customers Do Not Buy Services

Why Customers Don’t Buy Services

The primary reason customers do not buy services is that they do not feel that they need what is offered. Sometimes customers do not buy services because they are simply not given the opportunity to do so. In other cases, customers react to the cost of services and feel the price is too high, or they simply cannot afford to purchase a service contract.

When customers express that they do not need services there is also a consideration for the price they are asked to pay.  If services were free, then they would most certainly take the services.  This “I can do without” attitude combined with some degree of price sensitivity demands that we equip our sales channels with the knowledge and skills to overcome customer objections.

Establish a Compelling Value Proposition

The value proposition describes the relationship between the price and benefits from the services a customer receives. To be compelling, the benefits must be perceived to exceed the cost. Service benefits may be intangible – insurance against risk, or tangible – a commitment of specific resources or attainment of a specific outcome.

Although difficult, it is imperative to quantify the value of all service benefits so that they can be compared to the price. A compelling value proposition is fundamental for successful sales and renewal activities. Selling the value of services requires the following:

  • Understand your customers’ needs and expectations from the product and services they purchase from you.
  • Offer a robust portfolio of services. Not all customers will need or benefit from the same types of service so develop offerings that can align to the customer segments you serve.
  • Set reasonable prices for your offerings. This does not suggest that reasonable is low, but it must be justifiable. Customers must understand and agree that the benefits of service are consistent with the price they pay.
  • Define a clear and compelling value proposition.
  • Help sales channels and renewal teams understand the elements of the value proposition so that they can clearly articulate it to customers during sales and renewal activities.

Support Program Design, Competitive Analysis and Pricing Strategy

Support program design and pricing is challenging. Contact me to learn how ServiceXRG can help you determine if your service portfolio is up to date and aligned with customer needs.

  • Do you offer the right programs?
  • Is your portfolio Customer Success-Ready?
  • Do customers need more or less than what you offer?
  • How well is your pricing aligned with customer expectations?
  • What do your competitors offer and what do they charge?

Contact us now to learn how we can help develop and optimize support and services portfolio offers.

Chat with us (see link on right side of screen), send an e-mail to tsweeny@servicexrg.com, or use our contact form.

Featured: Selling Service Value

Selling services demands that you establish a credible and compelling value proposition. To be compelling, the benefits must be perceived to exceed the cost. This playbook describes the essential steps to develop a compelling value proposition to maximize support sales and renewal activities.

Login to get your copy.  Not a Member?  Learn more about our Service Success programs or contact us.

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*Membership level determines your access to ServiceXRG research and other member services. Paid memberships include access to research and playbooks. Free memberships include access to some reports and discounts to others. Please visit our membership page for a list of available membership programs.

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Related Articles

Success Marketing and Portfolio Management

Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change service marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

read more

Treat Your Service Portfolio as a Product Line

Service and success programs are a significant source of revenue. To assure that they yield their maximum revenue potential, treat service portfolios as strategic offerings in the corporate portfolio by assigning dedicated program management resources.

read more

Support Pricing Benchmarks

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered. The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium offer.

read more

Support or Success – What Type of Post Sales Service Portfolio Do You Need?

Support and maintenance portfolios have been the foundation of many post-sales service offers, yet Support offers alone are no longer adequate to sustain and growth customer relationship value. Modernization of support portfolios and the evolution to customer success-focused programs and offers is the future of post-sales service portfolios. This article will help you to determine what type of post sales service portfolio you need.

read more

Your Support Value Proposition is Out of Date

In a subscription economy your support value proposition is likely out of date. If your value proposition is based on promising access to update and service level response its time to for support value proposition refresh.

read more

How Much Should You Charge for Support?

How Much Should You Charge for Support?

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered.

Average Support Program Price

The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium program.  Prices vary based on the entitlements offered and the ways that pricing is structured.  Here are a few considerations:

Net vs. List

Pricing may be based on the percent of a products’ list price or the net price after discounts.

Add-on’s and Fixed Fees

Some support programs consists of a fee tied to the percent of product list or net price plus add-ons.  Add-ons are often associated with optional entitlements such as named support resources such as designated support engineers and/or account managers.

Adjustment Fees

The price of support in the first year is often not the price a customer will pay in subsequent years.  Support prices typically include annual adjustment fees to account for inflationary factors.

Pricing by Support Program Tiers

Support pricing is typically established by program level or tier.  It is not uncommon for support portfolios to consist of two or more tiers with names like Silver, Gold and Platinum.  Although support programs may sound alike, they often vary from vendor to vendor.  For the purposes of establishing baseline pricing benchmarks ServiceXRG has normalized support programs into the four distinct tiers described below.  Classification is based on the underlying program entitlements and not on the program names.

Support Program Tier Classifications

Average Support Program Price

Establishing Support Prices

The price of support must be set at a level sufficient to cover delivery costs, yet not too high to discourage customers from buying.   Customers are likely to have preconceived ideas about what support should cost based on experiences they have with working with other technology vendors.  If your “gold” support is priced at 23% of product list price but other vendors are priced at 18%, customers may perceive that your prices are too high even though you offer more for the price. 

It is imperative that you price support reasonably so that you can make a compelling case that the benefits outweigh the costs to the customer.

Making the Case for Services

Selling services demands that you establish a credible and compelling value proposition built upon the entitlements customers want and need from services balanced with a reasonable and justifiable price level.

Support Program Design, Competitive Analysis and Pricing Strategy

Support program design and pricing is challenging. Contact me to learn how ServiceXRG can help you determine if your service portfolio is up to date and aligned with customer needs.

  • Do you offer the right programs?
  • Is your portfolio Customer Success-Ready?
  • Do customers need more or less than what you offer?
  • How well is your pricing aligned with customer expectations?
  • What do your competitors offer and what do they charge?

Contact us now to learn how we can help develop and optimize support and services portfolio offers.

Chat with us (see link on right side of screen), send an e-mail to tsweeny@servicexrg.com, or use our contact form.

Featured: Selling Service Value

Selling services demands that you establish a credible and compelling value proposition. To be compelling, the benefits must exceed the cost. This playbook describes the essential steps to develop a compelling value proposition to maximize support sales and renewal activities. 

Login to get your copy.  Not a Member?  Learn more about our Service Success programs or contact us.

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*Membership level determines your access to ServiceXRG research and other member services. Paid memberships include access to research and playbooks. Free memberships include access to some reports and discounts to others. Please visit our membership page for a list of available membership programs.

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Related Articles

Success Marketing and Portfolio Management

Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change service marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

read more

Treat Your Service Portfolio as a Product Line

Service and success programs are a significant source of revenue. To assure that they yield their maximum revenue potential, treat service portfolios as strategic offerings in the corporate portfolio by assigning dedicated program management resources.

read more

Support Pricing Benchmarks

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered. The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium offer.

read more

Support or Success – What Type of Post Sales Service Portfolio Do You Need?

Support and maintenance portfolios have been the foundation of many post-sales service offers, yet Support offers alone are no longer adequate to sustain and growth customer relationship value. Modernization of support portfolios and the evolution to customer success-focused programs and offers is the future of post-sales service portfolios. This article will help you to determine what type of post sales service portfolio you need.

read more

Your Support Value Proposition is Out of Date

In a subscription economy your support value proposition is likely out of date. If your value proposition is based on promising access to update and service level response its time to for support value proposition refresh.

read more

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