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Case Studies

How Do You Stop a Disastrous Service Pricing Practice?

A ServicesRevenue Business Case

Edith Wise is gravely alarmed as she listens to a couple of business analysts who tell her how the account teams plan to price support to the customer based on the customer’s call volume. As the services marketing manager, she is meeting with analysts associated with the company’s large Technical Assistance Center (TAC) to build the case for including service features in upcoming product design plans. Instead, she shifts her focus to the service pricing disaster at hand.

Allocating Scarce Resources Between Existing Customers And New Opportunities

A ServicesRevenue Business Case.

A light on Frank Akamura’s phone is blinking persistently. On another line, Frank listens as his division vice president asks him to assign his lead consultant to a new project with a new client in a new market. As soon as his boss pauses to breath, Frank explains Jimmy Fiche, the lead consultant is holding on the other line with a request from a long-time client to initiate a new project. Keeping this client satisfied is such a high priority that both men instantly recognize the problem they now face.

Can Professional Services Deliver 40% Margin in First Year? Diane Sharrock's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links

Jim has his hands full and is probably a little over-optimistic. But I do think he has a chance of getting to 40% margins. Getting there within a year is the difficult part. His situation may be a familiar one to all of us.

Can Professional Services Deliver 40% Margin in First Year? Ken Carnes' Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links

If Jim can get senior-management support and they are willing to invest in the short run, then he may have a 70% chance to deliver the margin target of 40%. Jim is going to have to migrate to a more leveraged business model and take action on a number of fronts.

Can Professional Services Deliver 40% Margin in First Year? David Alvarado's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Relevant Links

Jim is in no position to commit to such a high-margin target. The most critical pitfall many organizations encounter when entering the professional services field is not having a well-defined scope and a proven methodology. Any services organization must be certain of what it can credibly offer to its customer base without overextending its delivery capabilities.

Can Professional Services Deliver 40% Margin in First Year?

A ServicesRevenue Business Case

Leaving the CEO’s office following his regular one-on-one meeting, Jim Kemper wondered why he didn’t just resign on the spot! He presented what he thought was a good argument for why it is unrealistic for his boss to expect him to deliver 40% margin in year one. As he staggered back to his office, he replayed in his mind the entire meeting and the arguments he just presented. He was hoping he could catch errors he may have missed.

Does a Technical or Product Marketing Background Make a Good Service Marketer?

Six months prior, Frank Akamura’s company, IT Utility Corp. (ITU), began offering its services to the airline industry. ITU now has a handful of clients. Frank learns from ITU’s vice president of sales that the time is right to dedicate a small sales team to focus on growing the business in the air transport segment. “Who on your marketing team can be assigned to support this new sales team?” asks the top sales person. “We’re short-handed right now. My only marketer is on maternity leave. The only other person is really a marketing communications person who puts together the literature we use to support our traditional service sales people,” replies Frank.

Is Advertising Effective for Marketing Professional Services? Tatiana Svec's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Case Studies or Relevant Links The answer should be “yes”, if: 1) the media is suitable. Since each sector of professional services is very niche, the campaign must be precisely targeted. Context and readership demographics must fit. Potential clients need to be predisposed to buying the advertised service. Example: If you are targeting executives, Forbes magazine may be attractive at first glance, since executives make up the majority of its readership. However, for a specialized service firm, the context is too broad to lock audience into the right frame of mind. Publications by professional associations may work better.

What Can You Cut When Your Budget is Slashed? Tom Schlick's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Case Studies or Relevant Links Kevin is a leader who faces a challenge. But the last thing he wants to do now is whine about his predicament. He has credibility because of his past performance. Yet, if he sits back and allows Barry to make a decision, Barry will do just that. He should begin by meeting with his team to discuss alternative options and develop a strategy that includes not only cost reduction but also revenue enhancement – ways to better serve customers while still cutting costs.

What Can You Cut When Your Budget is Slashed? Dennis Gershowitz' Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Case Studies or Relevant Links This is a scenario that we frequently see in our current economic environment. Tough times demand managerial flexibility. One test of the strength of a company’s management team is their ability to react to change quickly.
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