Success Story - "Reviving Flat Service Growth"
$2B Computer Reseller
Company Situation and Problem
Service sales revenues flat for 5 years, before and after the acquisition of a large national computer service company. Service sales were not integrated into Product sales. Management perceptions that service sales personnel were lazy "prima donnas" who should probably be terminated. Analysis revealed key strategic differences within executive management on role of "services". 500 Product sales people were "blocking" 25 Service sales people from "their" accounts due to perceived service quality issues. Service sales reported to Product sales managers. Comp plans encouraged infighting and obscured accountability; no Service sales reporting existed; Service quotas were too low; Service sales calling too low.
Paladin Actions & Recommendations
Recommended clarification of Services strategy, separating Service sales reporting from Product sales management, and development of a program to identify, address, and communicate perceived Service quality issues. Detailed Service sales measurement, reporting and accountability, and increased quotas. Cross-trained Product and Service sales on the benefits of cross-selling both into their accounts, and developed comp plans that drove cooperation.
- Within a year, Service sales had grown 25% and were growing at a 50% rate.
- Four of the original service salespeople had resigned, but the remaining 21 were all performing above their new, higher quotas.
- Large numbers of the Product sales force were now also selling services.