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Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.

Business outcomes-based customer success-driven pricing is imminent – ready or not

In 2017, 11% of small businesses and 14% of midmarket firms preferred business outcome-based, customer success-driven pricing from their channel partners and cloud solution providers. In 2021 the percentages have doubled to 22% and 28%, respectively. On the managed services side of the equation, SMBs have a very definitive view of managed services pricing. From a current payment method on a per-device/per-seat basis, they want to transition to a company-wide, fixed recurring fee. This type of payment takes the uncertainty out of the picture. However, similar to outcome-based cloud solution deployment pricing, 29% of SMBs prefer incentive pricing tied to performance levels guaranteed by the MSPs. Data also shows that 78% of SMBs want to work with suppliers who can connect business challenges with technology and design, architect, deploy and manage technology solutions that deliver business outcomes. The data speaks for itself. Contracts will need to specify the anticipated benefits resulting from technology implementations. Supplier rewards, at least above some nominal run-rate level, will need to be tied to achievement (or extended via over-achievement) of these objectives.

Writing is on the wall. Business outcomes-based, customer success-driven pricing is imminent.

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