Recurring revenues with existing customers have a natural tendency to decline. Like many XaaS executives, you may be asking, “What are the forces that create erosion and growth with subscription revenues?" Certainly the concept of churn is well understood as a negative force that reduces annual recurring revenues. But how well do you understand, and manage, downsell activities that also create revenue erosion? Also, how effectively are you pulling the growth levers of upselling and cross-selling to ensure revenues from your existing customers are growing and not declining? One of these growth levers is fee-based services. Contrary to popular belief, not all adoption services are offered for free, and in this infographic, we demonstrate how fee-based support and adoption services can contribute to the growth of total recurring revenues.

Fee-Based Services for XaaS Business Models

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For more ways to grow your services revenue, be sure to also take a look at my 3-part blog series, "How to Connect Your Service Offers With Business Value," where I discuss the capabilities you'll need to develop outcome-based offers, how to determine customer goals, and how to monetize adoption services.

 
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Julia Stegman

About Author Julia Stegman

Julia Stegman, is vice president of research, Service Revenue Generation, for TSIA. She has over 25 years of experience in the high-technology industry, and is responsible for driving the TSIA research agenda related to the growth of maintenance, SaaS, and managed service revenues as well as the expansion of product revenues with existing customers. 

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