Date: October 21, 2015

Author: Anton Vukovic - Unify


At one time, the success of an enterprise was determined by its products. Services did not play a significant role other than eventually providing after-sales services. Eventually, the market became saturated, products became exchangeable, and price erosion kicked in…and thus, companies had to change their strategy. Enterprises that understood the value of their existing customer base and addressed the untapped potential of their services business became the dominant players. Executives recognized the importance of that existing and new revenue source for their business as being more sustainable and, often, more profitable than their eroding product business.

Despite the changed importance of services, the service department was, and in some cases still is, predominantly seen as cash cow or margin optimizer within our domain. There might have been a shift, but in fact it was the replacement of one product with another product called “service.” Many testimonials can be found where this path was strongly pursued by the development of “productized services.” What hasn’t happened in most cases was to understand and leverage the different nature of services for the client relationship, which is driven by business outcomes. An outcome is the result of a process, with a process being a collection of related, structured activities or tasks, in other words, services. 

A service organization that is fully dedicated to customer success will achieve the highest client satisfaction and customer loyalty and drive profitable and sustainable growth for its own organization. Focus on customer business outcomes and customer delight will ensure a long-lasting relationship and future potential for both parties.

Applicable Disciplines:
Service Revenue Generation-Recurring,Managed Services,Support Services,Expand Selling,Customer Success

Growing Customers, Services Transformation, Customer Success, B4B, Business Outcomes

Functional Areas:
Operations,Service Delivery,Strategy