Ridgeland, MS (PRWEB) January 18, 2006
Recently published results of the Service and Support Professionals Association (SSPA) Industry Committee on Maintenance and Support ROI revealed a previously overlooked shift in the influence of product sales vs. services/support/maintenance sales on technology vendors’ corporate revenue and profits. Guidelines have been drawn to protect this revenue source. Efficient remote support could play a pivotal role.
The committee was formed in response to earlier findings that services, support and maintenance now account for 50% of the revenue for large enterprise software companies. The committee’s purpose was to identify strategies that would protect this revenue source. In the course of the study, it was found that best-practices vendors discounted their services less than others in the marketplace. So, in addition to studying discounting policies and other elements of service/support practices, best-practice vendor policies regarding support annual contract marketing and sales, particularly on renewals, were also studied in depth.
The economic findings were surprising. It was found that over the last five years, service, support and maintenance have accounted for over 70 percent of total corporate revenue growth for technology companies delivering hardware, software, and network solutions to large enterprises and small/medium-sized business customers. For those companies selling only hardware, as a group, services account for a third of total revenue and 98 percent of total corporate revenue growth.
The committee also found that 38 percent of support and maintenance providers discount 30 percent or more of their large maintenance contracts, and that 30 percent discount 10 percent or fewer. Additionally, 40 percent of respondents discount less than 5 percent off their original quote on their average maintenance contract, and 16 percent discount their fees 20 percent or more.
It was also noted that the companies that discount the least are those with the highest scores in customer satisfaction.
Customer satisfaction is, therefore, part of the main focus in protecting this revenue source. The keynote address at the SSPA conference in Las Vegas identified four key factors. These include implementing sales and service policies that discourage discounting, implementing correct organizational structure, systems and processes, building a value creation culture around services, and maintaining a strong focus on service delivery execution. Efficient remote support can greatly contribute to the latter factors.
NetworkStreaming’s support solutions have been proven to significantly increase customer satisfaction levels and reduce the total cost of ownership for remote support solutions.
For more information about NetworkStreaming’s remote support solutions, contact Melissa Taylor at 601-519-0139.