Go-to-Market Strategy and Routes to Market Mapping

Services group for leading hardware vendor increases attach rates, grows sales force 40% based on NewGrowth business case


Situation

An IT hardware vendor with dominant market share saw attach rates for its services group falling below the industry average. The client was unclear as to the cause of the low attach rates and asked NewGrowth to investigate.


Solution

NewGrowth reviewed the client's sales and marketing strategy for its services offerings, including analysis of services attach rates for the client's sales force and channel partners across all product lines. Meetings were held with key stakeholder groups to map out direct and indirect routes to market used by the client's services group and assess their effectiveness in growing sales revenue.


Results

NewGrowth's assessment of the client's routes to market uncovered a number of gaps in services sales coverage at crucial points in the hardware sales cycle. NewGrowth's revenue estimates for the services group, based on optimizing go-to-market strategy with existing customers, enabled management to authorize a 40% increase in the client's direct sales force. As a result, service attach rates are coming into alignment with industry standards and profit per customer has increased substantially.