Adapting Revenue Motions and Roles to Emerging XaaS Buyer Journeys

By: Ted Grossman Cloud Computing, Cloud Sales, Digital Transformation, Sales Strategy, Technology Sales

Part 1 of Alexander Group’s (AGI) XaaS Sales Strategy Market Study blog series revealed the five critical XaaS leadership priorities for XaaS model optimization. Part 2 takes a closer look at the first priority: Adapting revenue motions and roles to emerging XaaS buyer journeys.

XaaS is here to stay. Alexander Group’s recent study of over 60 high-tech companies shows that as a percentage of total revenue, recurring revenue now makes up approximately 90 percent of pure plays and over 20 percent of traditional Hybrid companies.

The XaaS business model centers on recurring revenue through either subscription- or consumption-based pricing. Because of this, recurring revenue business models require tech vendors to engage customers in a new way. Namely, in today’s world, tech companies need to have a continual, ongoing relationship across the entire customer life cycle. The relationship should feel seamless to customers whether they are dealing directly with vendor representatives, partners or digital interaction.

The question for XaaS vendors is, what are the optimal marketing, sales and service motions within XaaS environments? In addition, where and how should XaaS vendors focus their efforts in order to best meet customer expectations? The illustration below (click for larger image) attempts to map the customer life cycle with their vendor from two perspectives: The perspective at the top is from the buyer point of view; the bottom perspective is from the vendor point of view.

Ultimately, best practice is to ensure alignment between these two perspectives and verify successful execution of all roles and resources a vendor brings to bear. As a XaaS vendor, this means adapting outbound activities, processes, roles and coverage that meet the needs of XaaS customers and buyers. While most XaaS vendors are currently in the process of designing and executing their new ILAER strategies, many open questions remain, as do many choices regarding revenue motions, roles and coverage. It’s a discussion well worth having.

Ready to succeed in today’s XaaS environment? Visit our Technology Practice page to learn about our revenue growth methodology and how we can evaluate your go-to-customer model.

Curious to see if your firm is keeping pace with XaaS adoption? Schedule a readout of AGI’s XaaS Sales Strategy Market Study with a tech practice leader today.

Read other parts in this blog series:
Part 2
Part 3
Part 4
1. The Future Is XaaS
Hybrid and pure XaaS firms weighed in on the critical leadership priorities for XaaS model optimization.
2. Case Study: XaaS Buyer Journey
Discover how this high tech company developed an engagement model to span the entire customer life cycle as they transform to an aaS solution provider.

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Ted Grossman

Theodore (Ted) Grossman is a principal and regional leader in the San Francisco office. He co-manages the firm’s Technology and Channel Sales practices. Additionally, he is responsible for business development, management of key accounts and management for major consulting engagements. Ted has extensive experience in the areas of business strategy, business process re-engineering and organizational structure and design with a functional specialty in sales force and channel effectiveness. Ted’s industry background is extensive within the software, telecommunications and high tech manufacturing industries.

Ted has over 25 years of experience spanning both management consulting and industry line management primarily in the high tech and software vertical. Prior to joining the Alexander Group, Ted held positions in sales and channel management, corporate marketing and business and sales operations. In particular, he has successfully managed sales and services P&Ls and managed partner channels and alliances at two companies.

Ted holds a B.A. in philosophy from the University of California, Berkeley and an MBA from the Fuqua School of Business (Duke University). Ted is also a Certified Sales Compensation Professional.