40 minutes | Mar 18th 2020

Peter Wolf: How to Build Services-as-a-Service

There’s a lot of talk about moving from traditional on-premise selling to the as-a-service model. This remains a big challenge for traditional vendors and partners alike. I’ve always thought of this as shifting the sale of technology (software and hardware) from a big upfront sale to a much smaller recurring revenue stream. But as I learned in this conversation with Peter Wolf, founder of Azamba Consulting Group, partners also have a huge opportunity to shift from fixed time and materials service contracts to selling services-as-a-service. Listen to Peter as he shares the challenges and benefits of transforming his CRM services business to the subscription as-a-service model. 

KEY TAKEAWAYS

Peter shared some great tips for partners looking to make this transformation. Here are my favorites:

  • While transitioning to a subscription services model, keep your old business fixed price model going to help soften the cash flow impact of adjusting to recurring revenue.
  • Aligning your services pricing to your vendors’ subscription pricing that your customers understand will be well received. 
  • Today’s customers are very demanding. If you’re not serving them the way they want around their results, they will find someone who can.
  • In this new customer experience economy, you need to provide a consistent high quality services experience.
  • Charge a small up-front fee to prove customer commitment and continue adding more value to your service packages. 
SHARE THIS

It's easier for a customer to understand my subscription services model when they're buying the software the same way. @CRMWolf
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Today's customers are very demanding. If you're not serving them the way they want around their results, they will find someone who can. @CRMWolf
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Where all this transformation is coming from is not a desire for vendors or people like myself to shift. It's because the customers are leading us on this journey. @CRMWolf
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LINKS & RESOURCES The post Peter Wolf: How to Build Services-as-a-Service first appeared on Channel Journeys.
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