A broadcasting hardware provider needed to launch a services offering. Partnering with Waterstone, the company successfully launched a services program, built a backlog equaling 5% of total revenue in less than a year and is projecting to triple in 3 years.

The Issue

A hardware provider for the broadcasting industry had little services revenue. The majority of services were given away with the initial sale and were therefore having a negative impact on the company’s overall revenue. The management team wanted to create a source of recurring revenue, to align themselves more with industry standards, and create a revenue stream not directly tied to product sales.

The Approach

Waterstone partnered with company leadership to develop and launch a standardized maintenance offer and other services. Waterstone conducted an in-depth market sizing analysis, comparing the company with its competitors to determine the value proposition and TCO being offered to the customer. Waterstone worked with the executive team to develop the initial offering model, developing the packaging and pricing. Waterstone assisted in re-organizing the company’s service resources into one function and selecting a case management tool. Throughout the pre-launch phase, the client engaged Waterstone in forecasting and managing the financial model, creating several pricing scenarios. In rolling out the new offering, Waterstone was critical in crafting the Go-to-Market strategy as well as the service delivery model. Finally, Waterstone helped the company integrate the services offering into their overall business.

The Results

The new services offering was successfully launched in three months. The client immediately began building a significant services backlog from a very modest base; after less than one year that maintenance backlog had grown to 5%+ of annual revenue. This is projected to triple by in 3 years with a potential 50% impact on shareholder value.