2017 tsia "state of" reports | key trends
TRANSCRIPT
www.tsia.com
2017 “State of” Reports
Key Trends
www.tsia.com
The best practices & thought leadership your organization needs to succeed.
TSIA has the world’s largest vault ofboard-ready data insight in Technology Services.
www.tsia.com 3
SSSupport Services
ExSExpand Selling
SRGService
Revenue Generation
MSManaged Services
PSProfessional
Services
ESEducation Services
FSField
Services
CSCustomer Success
For 8 Key Disciplines
www.tsia.com
Get a Glimpse into our Vault
Here’s a look at 3 key trends from the 2017 “State of” report for each discipline.
www.tsia.com
The State of Customer Success Key Trends
• Trend #1: Sales Costs 36% of the time, technology companies utilize sales reps to sell renewal contracts.
• Trend #2: Services Portfolios49% of companies monetize some portion of their customer success portfolio.
• Trend #3: Service Organization Structure50%+ of the time, field, consulting, and technical services report into the global services or customer success executive.
5> Read the Report
www.tsia.com
The State of Education Services Key Trends
• Trend #1: Emphasis on Adoption 17% YoY increase in the percentage of education services orgs that identify adoption as their primary objective.
• Trend #2: Partnering to Drive Value56% of education services orgs partner with other service lines to help foster customer success.
• Trend #3: ES Subscription Revenue Growth8% YoY increase in the percentage of education services revenue from subscription offers.
6> Read the Report
www.tsia.com
The State of Expand Selling Key Trends
• Trend #1: The Quest for Profitable XaaS It’s 60-85% cheaper to acquire revenue from existing customers than it is to acquire revenue from new customers.
• Trend #2: Extreme Cost Optimization It costs 70-95% less to generate sales leads using services touchpoints compared to the cost of marketing or inside sales-generated leads.
• Trend #3: Declining Product Revenues Deals grow by 5-13x when companies apply business value consulting techniques with existing customers.
7> Read the Report
www.tsia.com
The State of Field Services Key Trends
• Trend #1: Being the Low-cost Provider 73% of field services organizations are struggling with profitable revenue growth.
• Trend #2: Automation is Critical75% of total service delivery costs reside in the on-site channel.
• Trend #3: Talent Management7x increase in field service engineer training hours for expand selling as organizations shift from a CapEx to an as-a-service model.
8> Read the Report
www.tsia.com
The State of Managed Services 2017
• Trend #1: Increasing Revenues42% is the average net-new revenue growth for managed services.
• Trend #2: Cloud or Bust96% of all managed services providers now offer a managed XaaS solution.
• Trend #3: Dedicated Sales27% of managed services orgs now have a dedicated MS sales team.
9> Read the Report
www.tsia.com
The State of Professional Services Key Trends
• Trend #1: Emphasis on Value162% YoY growth is realized for the percent of revenues from value realization or adoption.
• Trend #2: Larger Deals9% YoY increase in the average professional services deal size.
• Trend #3: Customer Focused17% YoY increase for professional services projects surveyed for customer satisfaction (CSAT).
10> Read the Report
www.tsia.com
The State of Service Revenue Generation Key Trends
• Trend #1: Frictionless Renewals Only 23% of benchmarked companies execute an effective auto-renew program; yet these programs contribute to higher renewal rates.
• Trend #2: Customer Success PlansXaaS companies are combining sophisticated support capabilities with adoption services in order to sell fee-based services.
• Trend #3: Premium Support Services$30 million of premium support contracts typically contribute $14 million of incremental gross profit dollars to a company.
11> Read the Report
www.tsia.com
The State of Support Services Key Trends
• Trend #1: Customer Experience71% of TSIA support services members are not tracking customer effort.
• Trend #2: Customer Engagement28% of the industry is routing new service incidents to the first available agent instead of the most skilled agent.
• Trend #3: Support Modernization17.6% of support reps are compensated for both new sales and renewals.
12> Read the Report
www.tsia.com
TSIA helps you make smart, calculated, and transformative business decisions.
Let’s talk about how you can gain direct access to our vast vault of resources.
www.tsia.com
13
© Copyright 2017 Technology Services Industry Association