Model N: The New Imperative – Align Partner Engagement with the Customer Lifecycle
Various market studies have forecast that the global “everything as a service” (XaaS) market will grow at a CAGR of 25.5% between 2021 and 2026, with the expectation of reaching over $350 billion. by 2023. With this rate of growth, there are fundamental changes in the channel that are occurring and will continue to pose challenges for you and your business partners.
With the shift to a recurring revenue model, actions that support customer success gain in importance from the initial transaction. Influencers (who may not transact), implementation partners, post-sales support experiences, and a focus on renewals require a shift in your partner’s engagement.
In Deloitte’s 2021 study, Everything as a Service (XaaS), 83% of respondents believe that XaaS has improved their customer experience and 53% believe that XaaS is better for their customer experience than traditional computing.
While these responses highlight the many benefits that XaaS adopters experience in ensuring operational efficiency and business agility, there are persistent challenges that prevent a higher level of adoption and satisfaction:
Data security and privacy concerns
Insufficient IT skills to deploy and manage XaaS
Concerns about unpredictable costs
Difficulty integrating with other systems
Adopters do not feel comfortable with their current providers and only three out of 10 adopters are happy to stay with their current XaaS vendors and only four out of 10 declares to be extremely satisfied with the ability of its current suppliers to guarantee reliability and performance. Vendors and partners are missing an opportunity to strengthen relationships with their customers and help them resolve issues that materially affect customer satisfaction: 82% of adopters agree that their organization could achieve better results if their XaaS vendors behaved more like advisory partners.
Vendors should ensure that their partners are engaged beyond the initial XaaS offering sales event. In the “everything as a service” world, you need to build your partner incentive programs around the customer journey and lifecycle. Traditional programs usually deal only with transactions. By adopting hybrid incentive programs, you can support business across the entire customer lifecycle – from pre-sale to after-sale to renewal.
Model N explores the five steps you need to take to scale your incentive programs to succeed in the new era of XaaS in e-book, Transform your channel’s incentive programs for today’s new business models. Download the e-book to learn how to create relevant and effective incentive programs; help your partners increase adoption and usage which leads to increased customer satisfaction and retention and reduced churn.