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 they must keep pace with customer needs and expectations.
Formal Product Management of Service Portfolios
Treat service portfolios as valuable offerings by assigning dedicated program management resources to keep offerings up to date and relevant. Consider the following:
Develop service and success portfolios that span delivery silos (Support, Success, Education, Professional Services, etc.).
Assign a full-time dedicated product manager to lead program management activities for the service / success portfolios across service disciplines and related product families.
Establish goals and objectives for the service program manager based on performance and revenues directly associated with sale and renewal of service and success offerings.
Grow the team of portfolio product managers to keep pace with the size, complexity, and financial performance of the service portfolio.
To assure that your service and success portfolio remains relevant to customer needs review and update offerings on an ongoing basis. Consider adding new offerings and enhancements as customer needs evolve. Be certain to define and articulate the value of all offerings and reinforce service benefits to help sustain customer relationships.
How much should you charge for Support? It’s a driving question as your organization seeks to drive recurring revenue growth. And it’s a balancing act. Let’s explore a Support pricing model that’s been shown to work equally well for businesses and their customers.
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Modern, well-defined post-sales service portfolios that combine elements of Customer Support and Customer Success can significantly increase your ability to help customers use and apply products; reduce churn; and expand revenue growth. This article will help you to determine the type of post sales service portfolio you need.
High Net Promoter Scores as the desired outcome of Support and Customer Success interactions, while positive, is not enough because they it does not connect service delivery excellence with tangible business outcomes.
Net Recurring Revenue is a comprehensive indicator that reveals the extent to which you are retaining, expanding and growing customer relationship value. Examining the specific underlying elements that contribute to the calculation of Net Recurring Revenue provides the necessary insights to identify the root causes of churn, attrition and contraction. In addition, examining the reasons for revenue growth presents opportunities to embrace and expand practices that encourage expansion of relationship value.
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.