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Selling Services

Marketing Services to Enterprises: Fickle Decisions

Services marketing and account managers approach organizations as cohesive and rational entities. They expect healthy-looking companies to have clearly defined and consistent service requirements. They presume decision makers know what they want and can reconcile their internal differences for the good of the organization. Experience and anecdotal evidence paint a different picture – one of divided management who lack adequate time and resources to prioritize needs and negotiate internal differences.

The Risky Business of Using Techs To Sell

A sizable number of technology companies use their technical support or field service engineers and technicians to sell a variety of services and solutions to their existing customers. The logic usually follows this rationale: On a daily basis, our technicians – or techs – see or talk to our customers who trust them. Therefore, they’re in a good position to do some selling. As those who have tried using their technical staff to sell can attest, this logic doesn’t hold up.

How Do You Stop a Disastrous Service Pricing Practice?

A ServicesRevenue Business Case Edith Wise is gravely alarmed as she listens to a couple of business analysts who tell her how the account teams plan to price support to the customer based on the customer’s call volume. As the services marketing manager, she is meeting with analysts associated with the company’s large Technical Assistance Center (TAC) to build the case for including service features in upcoming product design plans. Instead, she shifts her focus to the service pricing disaster at hand.

Creative Revenue Opportunities in Field Services

What are people doing to generate revenue in new and innovative ways? Recently, we asked Rebecca Whalen, Director of Technical Services Team to share with our readers a couple of examples. Technical Services Team (TST) is a division of Peak Technologies that provides field services on an outsource basis. The first example involves a medium-sized reseller based in Georgia.  In business for nine years, this reseller sells hardware, primarily printers, with accessories as well as services. They’ve grown their business to seven million dollars in revenues, two million of which come from services.

How Microsoft Sells Services Through Global Partners

When Microsoft merged companies including Great Plains, Solomon and Navision under the Microsoft Business Solutions (MBS) umbrella, service management had to reexamine business models, assimilate conflicting product support policies, integrate different systems and present customers with a unified global services offering. Here’s a recap of a presentation Jana Reinke gave early in October 2004. It wasn’t easy. Reinke recalls how each company had a different way of dealing with just about every aspect of service and support. Here are some of the tough decisions Reinke faced: Services Offerings

Allocating Scarce Resources Between Existing Customers And New Opportunities

A ServicesRevenue Business Case. A light on Frank Akamura’s phone is blinking persistently. On another line, Frank listens as his division vice president asks him to assign his lead consultant to a new project with a new client in a new market. As soon as his boss pauses to breath, Frank explains Jimmy Fiche, the lead consultant is holding on the other line with a request from a long-time client to initiate a new project. Keeping this client satisfied is such a high priority that both men instantly recognize the problem they now face.

Sales Leads To Kill For

Ingram Micro and MaintenanceNet have amassed detailed service renewal leads for resellers. But only a third of Ingram’s resellers had taken steps to follow up on these leads. Ingram had brought its margin-thirsty horses to the water but only a few started to drink. Why aren’t the rest quenching their thirst?

The Skills of High Performing Account Managers

Which skills distinguish high-performing account managers from their low-performing counterparts? The ideal skill set is broad and comprehensive. It includes awareness of customers’ goals, a wider network of internal and external contacts and better use of information resources. Michael Hutt, Beth Walker, Ajith Kumar of Arizona State University and Gabriel Gonzalez of Colorado State University analyzed the skills of 58 account managers in a study sponsored by Yellow Corporation. The sample used for this study was drawn from the United States, Canada and Puerto Rico and included 19 high performers, 19 average performers and 20 low performers. This classification of performance was based on 2000 revenue and profitability achieved.

The Anatomy of a Service Turnaround

Two years ago, Neil Baron sat in a business review meeting at Brooks Software following a string of 11 acquisitions. When the focus shifted to maintenance, one product manager stood up and said, “For my product, our target is $10 million for the year. It’s now mid-year, we’re at $3 million year-to-date.” Incensed with what he heard, the then vice president of global sales asked for a piece of paper. He wrote: “Declining software maintenance revenue” on it, gave it to Neil and asked him to fix the problem in two weeks!

The Fascinating Services Sales Compensation Mosaic

Recently, I asked our readers to tell us, in general terms, how their organizations handle services sales compensation. The early responses I received so far vary dramatically. If someone has thought of it, some company out there has adopted it. To be sure, best practices are clearly emerging. It’s the bad ones that make you wonder. The two-part question I posed to readers asked them to identify the group that takes the lead within their organization for maintenance contract sales. Then I asked about that group’s compensation mix. This is part of my research in preparation for writing a new book on the subject in collaboration with a few battle-tested colleagues.
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