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  • Harvard Business Review

How to Shift from Selling Products to Selling Services

By: Doug J. Chung
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Abstract

Only a few years ago, most software companies sold seat licenses for their products, charging customers on the basis of head count. But today, software is typically provided using cloud-based software-as-a-service (SaaS) models that charge customers fees for consumption. Technology companies have spent billions on the innovation necessary to achieve this product shift. Now, they need to transform their sales organization and sales management practices accordingly, including an overhaul of the skills salespeople need, how they are trained and compensated, and how they interact with clients.

Keywords

SaaS Business Models; Sales; Management; Business Model; Salesforce Management; Applications and Software; Customer Relationship Management

Citation

Chung, Doug J. "How to Shift from Selling Products to Selling Services." Harvard Business Review 99, no. 2 (March–April 2021): 48–52.
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About The Author

Doug J. Chung

Marketing
→More Publications

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More from the Author
  • BTS & ARMY By: Doug J. Chung and Kay R. Koo
  • The Comprehensive Effects of Sales Force Management: A Dynamic Structural Analysis of Selection, Compensation, and Training By: Doug J. Chung, Byungyeon Kim and Byoung G. Park
  • Time Dependence and Preference: Implications for Compensation Structure and Shift Scheduling By: Doug J. Chung, Byungyeon Kim and Byoung G. Park
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