commodities business development

Service sales strategies

PROBLEM

CompoundCo. a global operator in the commodity industry provided services bundled with its products as competitive differentiator. Therefore services were mentioned but not charged separately. Now CompoundCo. sought to monetize its services along with its products, thus they wanted to identify successful service-sales implementation strategies.

Outcomes

10 Service sales opportunities recommended
5 Pricing models assessed for each service opportunity

“In order to gain customers’ trust, we need to prove that we are capable of providing the complete service package and that it will have benefits.”

Senior Executive

QUICK SUMMARY

CompoundCo. an established supplier of commodity goods to incumbents in the industry sought to shift its offering. CompoundCo. currently offers services bundled with its products, which is an industry norm. But CompoundCo. seeks to change this by separating pricing for products and services, as this will provide opportunity for higher monetization.

The key topics in the project were:

Q1. What are the Service sales strategies used by peer companies?

Q2. What are the obstacles encountered in the service sales process?

Q3. What are the coping mechanisms to counter obstacles in service sales?

The SITUATION

The services provided by CompoundCo. were bundled with products, are currently not separately as a line item. To shift from this, CompoundCo. needed to operationally understand key aspects of service sales such as service categorization methods, sales and pricing strategies. Therefore CompoundCo. conducted a benchmark study inorder to successfully define its services catalogue and launch service sales.

OUR APPROACH

CompoundCo. utilized SCG’s on-demand workforce for a time-boxed sprint for this benchmarking study.

Phase 1: Key research topics and insight source identification

The SCG's agile workforce began the process by identifying the key sources for insight collection. Next, along with CompoundCo. team a list of key topics were identified, these included sales organization structure, information flow tool capability, and demand identification.

Phase 2: Service sales market entry and pricing strategy

Based on above the SCG's agile workforce identified entry level strategies for CompoundCo. Additionally, insights on resource allocation and service categorization along with case studies from peer companies were provided. Next the SCG's agile workforce identified the various pricing models used by peer companies and the packaging strategies.

Phase 3: Service packages concept creation

Based on the above analysis, the SCG's agile workforce developed customized service packages with specific values required by CompoundCo. In addition, the SCG's agile workforce provided a roadmap for service categorization and practices for effective service sales implementation

RESULTS

SGC’s on-demand workforce provided CompoundCo. a framework to build service offerings that are monetizable and measurable. Through this project, CompoundCo. acquired strategies for transformation towards a service organisation that can further impact their revenue potential and increase it by over 20%.

“I was happy with the work and the insights were valuable.”

Senior executive

Have a similar requirement?

Contact us today to learn more about on-demand workforce and accelerate development on your most pivotal projects!

Book a meeting

  • Share this case-study
  • Facebook share icon
  • LinkedIn share icon
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Scientifically substantiate product sustainability value claims

Scientifically substantiate product sustainability value claims

construction industry agile deep dive data analytics sustainability

ConstructionCo. needed to find relevant case examples where their customers had been able to achieve both sustainability targets and cost savings using similar products. ConstructionCo.’s potential customers had many alternatives to choose from, and its product had yet to prove its value to the customer from a cost point of view.

Read more →
Emerging digital facility-management needs

Emerging digital facility-management needs

facility management agile deep dive business development

The facility management industry is a fragmented and complex industry. Their customers consist of incumbent construction industry players who inherently are risk-averse, due to long lifecycle of their buildings. Thus in order for the FM industry to grow, they have to prove that their solutions are well-founded in customer needs and a have strong business case.

Read more →
Reduced equipment failures upon delivery to customers

Reduced equipment failures upon delivery to customers

manufacturing current state analysis current state analysis

About 1% of EquipmentCo.’s deliveries lead to out-of-box failures (OBF). This resulted in customer dissatisfaction and increased delivery costs. Therefore, EquipmentCo. sought to identify the root cause of these failures, identify solutions together with KPIs to measure OBFs.

Read more →
More case studies →