service marketing as a strategic element
TRANSCRIPT
Service Marketing as a Strategic Element
Al HahnExecutive Director503-668-9004, ext.2
© Copyright 1995–2014 Hahn Consulting, Inc.
The Association of Support Professionals• Mostly managers, directors and VPs of service and support
organizations• Approximately 1200 members worldwide• Approximately 300 members in Europe• Started as all software companies in 1995, now about 30%
hardware or combination hardware/software• Over 6,500 in our LinkedIn group, very active discussions• Inexpensive, individual membership is only $95• Get access to 4 Reports per year
– 2014 - Salary Survey, Social Media in Svc &Support, Virtual Agent Report
• Annual Top 10 Best Web Support Sites Competition & Report• Discounts for other organizations events, such as this one
Copyright2012-2103, Association of Support Professionals
Where To Get Services Strategic Thinking• Lack of strategic thinking is often our biggest
weakness• Service operations unlikely because of reactive
thinking, but common promotion path• Service Marketing backgrounds often different• More women in service marketing• Can balance the organization
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Not strategic StrategicPromotion Product
(Service)
Place(Channel)
Price
TargetMarket
© Copyright 1998–2011 Hahn Consulting, Inc.
Software Support
%
Product
List
Premium
Basic
Standard
20-40%
12-20%
6-12%
Automated7 x 24
5 x 12Phone
7 x 24Phone Assigned
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Service Offerings Portfolio
Premium
Basic
Standard
SelfService
PremiumSelf
Service
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Service Pricing & Buying Behavior
• Best Practice: Design packages to meet target market needs
90%
10%
Buy on perceived need
Buy on price
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Service Pricing & Buying Behavior
• < 1% of reasons to choose product are price of service
• < 1% of reasons for vendor loyalty are price of service
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Service Pricing & Buying Behavior
• It takes a 20 – 25% price difference to impact buying behavior in a consistent & measurable way
• The market leader is allowed (and expected to take) a 20-25% premium
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Common Service Pricing Methodologies
• Cost-plus• Percent of product price• Market-Based• Value-Based
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Value Pricing – A Best Practice, Where It Fits
Locally-GrownFree Range Fresh Chicken
“Fresh”Chicken
FrozenChicken
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Value-Pricing Process• Design high-value package, based on user
research• Select model or technique to establish value • Set price based on the model• Check margin against cost-plus• Perform market test• Fine-tune • Finalize price• Send (sell!) model to sales to use with
customers
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Mix Pricing Methods forMaximum Revenues &
Profits
Premium
Basic
Standard
SelfService
PremiumSelf
Service
Cost-plus Pricing
Market-Based Pricing
Value-BasedPricing
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Gross Margins100%
50%55
35Typical
30
60
40Typical
15
85
55Typical
10
85
45-65Typical
0
3523
Typical15
Professional On-site Depot S/W Spare TrainingServices Repair Repair Support Parts
85
55Typical
0
Look for the High Margin Opportunities© Copyright 2012 ASP
Thank You• I can be reached at
[email protected]• We’re on the Web at www.asponline.com
© Copyright 2012 ASP