Source: TSIA Service Revenue Generation Benchmark Study 2015
© 2015 All rights reserved. Technology Services Industry Association (TSIA)
www.tsia.com/srg | @tsiacommunity
Maintenance and Support Revenue Waterfall
There are three major areas where you can pull levers to grow revenue.
$100M $103M
3% UP
9% down 4% down 5% UP
10% UP
$95M
100%
PRICE
INCREASE
CROSS-SELL
OUTCOME
SERVICES
CUSTOMER
ATTRITION
DOWNSELL
UPSELL
But, watch out
for attrition
and downsell!
AVAILABLE
TO RENEW
Renewal & Upsell
Upsell rates must be higher
than downsell and attrition
rates or your revenue
will decline.
Value-Added Services
Change the trajectory to growth by
cross-selling value-added services
with compelling value propositions.
Pricing Action
Small, annual price increases
on a large revenue base
translates to big dollars.
INITIAL
CONTRACT VALUE
TOTAL
RECURRING REVENUE
ADJUSTED
CONTRACT VALUE
LEVER 1 LEVER 2 LEVER 3
$105M

[Infographic] Maintenance and Support Revenue Waterfall

  • 1.
    Source: TSIA ServiceRevenue Generation Benchmark Study 2015 © 2015 All rights reserved. Technology Services Industry Association (TSIA) www.tsia.com/srg | @tsiacommunity Maintenance and Support Revenue Waterfall There are three major areas where you can pull levers to grow revenue. $100M $103M 3% UP 9% down 4% down 5% UP 10% UP $95M 100% PRICE INCREASE CROSS-SELL OUTCOME SERVICES CUSTOMER ATTRITION DOWNSELL UPSELL But, watch out for attrition and downsell! AVAILABLE TO RENEW Renewal & Upsell Upsell rates must be higher than downsell and attrition rates or your revenue will decline. Value-Added Services Change the trajectory to growth by cross-selling value-added services with compelling value propositions. Pricing Action Small, annual price increases on a large revenue base translates to big dollars. INITIAL CONTRACT VALUE TOTAL RECURRING REVENUE ADJUSTED CONTRACT VALUE LEVER 1 LEVER 2 LEVER 3 $105M