Deployment of high end software almost always involves a professional services component. After all, the software manufacturer needs to arrange for installation of the software, training on how to use it and ongoing support. When the software provider is a small company, however, and the product is perceived by the end user as being easy to implement and operate, the ability to increase revenue per sale through add on professional services can appear to be limited.
As vice president of a metrics-based performance analytics software manufacturer, I am constantly seeking ways to add value to the software, to increase the revenue per sale. I thought I’d share this with you, especially if you are on the look out for ways of adding services revenue.
I identified an opportunity to utilize existing personnel to spearhead the creation of a structured 1-day workshop, conducted over the internet, to help new users of the software identify the best set of metrics to use to reach their particular goals. This service was packaged as “Goal Achieving Metrics” using the talents of a customer service professional, who was already on our team and brought with him over 30 years of industry expertise.
The result was an increase from an average of only $5,000 per install to an average of $10,000 per install, using existing personnel, whose expertise we effectively branded and packaged as a key selling point of the workshops. Sales revenue increased and our in-house expert was able to develop a strong rapport with new customers that would help us improve the software and the method of delivery. The “Goal Achieving Metrics” branding would continue to help differentiate this software from competitors.
But the best part of Goal Achieving Metrics was the true win-win it brought with it. The customers were able to get a real professional helping them carve out a targeted set of metrics at a reasonable price. Our company was able to earn additional revenues and build a unique brand of services around a software product.
The truth is that most companies have “experts” who know the product and are particularly good at working with the customers. Do you have an “expert” on your team whose value is going unrecognized and un-monitized? If you do, you may be able to add significant revenue to each sale by adding distinctive value for the customer and giving an opportunity to a team member to shine.