Returning guest Eisha Armstrong is the co-founder of Vecteris and author of books like "Productize" and "Fearless", which talk about that tricky journey from a professional services to product organisation. She's back to talk about her latest book, "Commercialize", which gives us the skinny on how to monetise, sell, and market productised offerings in transforming B2B professional services firms.
Episode highlights:1. Product strategy is the heart of successful commercialisation
A successful product commercialisation strategy needs five key elements: Clear market understanding, monetisation approach, marketing strategy, sales process and plan for renewability. More than anything, company leaders need to think about this stuff upfront and not just wing it.
2. Selling to existing customers is often the most effective strategy for B2B services companiesThe data shows that selling products to existing service customers, especially as bundles, is typically more successful than trying to enter new markets. It's tempting to try to go downmarket with cheaper, standardised offerings, but this is challenging due to lack of brand recognition and relationships.
3. Packaging is more critical than pricing for successMany leaders focus on pricing, but packaging is often the bigger challenge. Packages should be designed around market segment needs rather than defaulting to simple "good, better, best" tiers without clear rationale. There must be a clear story for why customers would upgrade from one package to another.
4. Companies need to invest in new capabilities for product successA common mistake is trying to commercialise products using existing service-oriented sales and marketing teams. Organisations need to plan and budget for different kinds of capabilities and talent, rather than expecting current staff to develop new skills while maintaining their existing responsibilities.
5. Moving to recurring revenue requires organizational changeShifting from one-time service engagements to recurring product revenue requires changes in how companies measure success, moving from annual revenue targets to customer lifetime value. This transition typically takes several years and requires sustained leadership commitment to stay the course.
Buy "Commercialize""More and more professional services firms are “productizing” their services to grow and scale. But successfully marketing and selling standardized services or products is very different from marketing and selling traditional professional services. Commercialize, a follow-on book to Productize, explores why commercializing new ideas is the most significant stall point when B2B services organizations productize. The book then outlines how the most successful firms commercialize packaged services and new products and get to revenue impact fast and efficiently."
Check it out on Amazon or the book's website.
Contact EishaYou can find Eisha and learn more on the Vecteris website or connect with her on LinkedIn (mention you heard her on the podcast when connecting!)
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