Service Revenue Generation: A New Frontier

Late last year, TSIA launched a new services research discipline focused on the practices and metrics associated with service revenue generation. In other words, what practices do product companies implement to secure and maximize annuity service revenue streams? And what are best in class performance metrics related to service revenue generation?  The companies who helped start this discipline wanted to better understand everything from attach rates, to discount rates, to the number of offers being created for customers.

TSIA secured a senior services sales executive, Julia Stegman, to build out the research activities in this discipline. Julia took her years of experience selling services, collaborated with over twenty technology companies (including Microsoft, Oracle, Sage, Symantec, and Success Factors), and created a new benchmark instrument designed to assess an organization’s ability to attach, renew, and expand service revenue streams. Trust me—if you are on the hook to grow the service revenue streams at your company, this is exciting news.

This week, Julia began delivering the first benchmark reviews. This was my first opportunity to see the SRG benchmark tool in play with members. For a guy in charge of research for an industry association, it gets no better. This is what we live for—the ability to leverage a community platform for the benefit of all participants. This new benchmark is taking guess work out of the business of driving service revenues. The SRG benchmark can quickly identify key gaps in business practices and performance metrics related to service revenue generation. And, Julia is now aggregating data on topics I have never seen well covered before. For example, what “service capabilities” do product companies typically include in Level 1 support contracts? The SRG discipline now benchmarks that. And members can quickly see if their offerings are exceeding or lagging the standard industry offerings.

Excelling at service revenue generation has become table stakes so many product companies. I am thrilled TSIA is shining a bright light on this topic. From fiction to fact.  A mission we started with TPSA and the embedded Professional Services community over five years ago. Now, we get to apply the same tools and tactics to service revenue generation. It’s a new frontier.


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