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Anyone out there calculating Product Pull Through for your Professional Services?

MelanieCarlson Founding Analyst | Scholar ✭✭


We are working on calculating Product Pull Through that is created by our Professional Services Teams. Anyone else doing this? How are you defining and marking? Are you using all data with averages and ratios where Professional Services is involved with other products, if not how are you marking which ones?


Melanie Carlson


  • StevenForth
    StevenForth Founding Partner | Expert ✭✭✭

    Yes, and this is in fact a core part of our business model. While many VCs (OpenView for example) advocate product led growth we feel there is an alternative, service led growth. In service led growth the professional services function is expected (and carries a number) for generating subscription revenue. I have attached an image of what we refer to as the Service Led Growth Flywheel.

    There is a risk here though. The professional services function can't be put in the position of pushing a subscription the customer does not want. We get around this by delivering the professional services through our software platform where ever possible.

  • PatrickCarmitchel
    PatrickCarmitchel TSIA Administrator | admin

    @Melanie Carlson would you please clarify? Are you more focused on the impact of Professional Services on product adoption or expanding a customer to other products in the process of project based implementation?

    @Dave Young would be great to loop into this discussion.

  • MelanieCarlson
    MelanieCarlson Founding Analyst | Scholar ✭✭

    @Patrick Carmitchel we are interested in the first one. How professional services is creating product adoption/accelerting time to value for the customer.

  • PatrickCarmitchel
    PatrickCarmitchel TSIA Administrator | admin
    edited November 2020

    Thanks for clarifying, @Melanie Carlson. I'm sure @Bo DiMuccio or @Dave Young will have some good insights on this topic for you.

    In the State of Professional Services 2020 report, Bo refers to the Professional Services Organization (PSO) maturity model and for the "Optimizing" or "Optimized" PSO, there is certainly a focus on outcome based implementation. For as a service business models (whether born in the cloud SaaS, hybrid, in the process of a digital transformation, etc.), the impact of professional services on LAER and the customer journey is more important than ever, especially as it pertains to initial adoption through effective implementation, onboarding and integration of a solution. The correlation of Professional Services on annual recurring revenue (ARR) for instance, is referenced in a post on "Where Professional Services Fit into the Customer Journey":

  • steve tennant
    steve tennant Member | Scholar ✭✭

    Hi Melanie -

    With my clients I've seen a couple things:

    1) Mark the leads for each product sold by professional services with the "lead source" indicated as professional services.

    2) Compare gross and net retention rates between like-sized customers who have, and don't have professional services.

    Hope that helps.


  • Bo DiMuccio
    Bo DiMuccio Member | Guru ✭✭✭✭✭
    edited November 2020

    @Melanie Carlson, this is certainly something that we think about, benchmark, help our customers with. I'd be happy to get on the phone with you to discuss what we're seeing. Let me know. Feel free to message me directly.

  • Hi @Bo DiMuccio , has there been any documentation on this topic? Came across this thread and very keen to learn more about measuring the impact/effectiveness Professional Services has on renewals, upsells, etc. Thank you!