The CXO and the VP of Services often bemoan the low attach rates of services in the deals sold to customers. The issue is not only a loss of short term corporate revenue but perhaps, more importantly, the long term impact on customer success and satisfaction – which impacts renewals and upsell opportunities.
Sales compensation is frequently cited as the root cause. If the salesforce is not comped on services sales (or there is a lower commission) versus product sales, then the expectation is that sales will not put much emphasis on selling services. While this is certainly a valid argument, it is a self-inflicted wound that can be addressed through modifying the compensation plan. Perhaps the tougher reason for low attach rates is that the services were not positioned effectively during the sale. In this blog we’ll explore a simple, but effective way to better position services as well as products.