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Research Report

Achieving Offer-Market-Sales Fit in the XaaS Revolution (Abridged)

TSIA’s XaaS Product Management and Subscription Sales research practices are collectively working to help technology companies identify and adopt proven practices.

Not that long ago, most technology buyers were prepared to splash out a fistful of CapEx dollars with little downstream commitment from the vendor. In this traditional-transactional world every customer was a good customer.

However, every technology company around the world has now accepted that this world is changing. There are three major signposts signaling this change:

  1. Overall technology revenues at the 50 largest publicly traded tech firms are down significantly (15% lower than at the start of 2012, according to the TSIA T&S 50).
  2. Customer expectations are rapidly shifting to OpEx-based purchasing.
  3. According to Microsoft, 80% of new technology spend will sit with business buyers by 2020.
In this new paradigm, it is essential to start building a customer relationship on the basis of value and outcomes delivered. While product management can segment, define, and build solutions with strong offer-market-fit, it’s imperative that sales can effectively sell the value to land these ideal customers for a long-term relationship and high customer lifetime value (CLV). We refer to this as offer-market-sale fit.

Download this report for an introduction of these concepts to share with your team.

Authored By:

Martin Dove

Vice President of Research, Subscription Sales, Technology Services Industry Association

Laura Fay

Vice President, XaaS Product Management Research, Technology Services Industry Association

Publish Date: March 15, 2020

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Peg Rodarmel, SVP, Subscription Services, Infor

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