Unleash the power of the installed base: Identifying cross-selling opportunities from solution offerings

Cross-selling for solution offerings in the post-deployment phase is under-researched. This study posits that although providers of solution offerings have more opportunities to expand their business through enhanced cross-selling opportunities, three mechanisms determine to what extent cross-sellin...

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Published inIndustrial marketing management Vol. 108; pp. 122 - 133
Main Authors van der Borgh, Michel, Nijssen, Edwin J., Schepers, Jeroen J.L.
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.01.2023
Subjects
Cross-selling
Product-service solutions
Sales-service cooperation
Servitization
Solution modularity
Value tools
Sales-service cooperation
Cross-selling
Product-service solutions
Solution modularity
Value tools
Servitization
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Abstract Cross-selling for solution offerings in the post-deployment phase is under-researched. This study posits that although providers of solution offerings have more opportunities to expand their business through enhanced cross-selling opportunities, three mechanisms determine to what extent cross-selling opportunities materialize: solution modularity, sales-service cooperation, and value assessment tooling. Using data collected from 220 US firms, we test our conceptual model while correcting for potential endogeneity. The findings confirm that two of these mechanisms help firms leverage their solutions in the post-deployment by contributing to customer satisfaction and financial performance. Sales-service cooperation has a strong positive moderating effect, whereas value assessment tooling shows a substitution effect together with solution offering, in driving cross-selling opportunities. We also find diminishing returns of cross-selling opportunities on customer satisfaction, implying that an optimum level of cross-selling opportunities exists. •Examine cross-selling for solution offerings in the post-deployment phase•sales-service cooperation has important role in cross selling solution offerings•value assessment tooling substitutes effect of solution offering in driving cross-selling opportunities
AbstractList Cross-selling for solution offerings in the post-deployment phase is under-researched. This study posits that although providers of solution offerings have more opportunities to expand their business through enhanced cross-selling opportunities, three mechanisms determine to what extent cross-selling opportunities materialize: solution modularity, sales-service cooperation, and value assessment tooling. Using data collected from 220 US firms, we test our conceptual model while correcting for potential endogeneity. The findings confirm that two of these mechanisms help firms leverage their solutions in the post-deployment by contributing to customer satisfaction and financial performance. Sales-service cooperation has a strong positive moderating effect, whereas value assessment tooling shows a substitution effect together with solution offering, in driving cross-selling opportunities. We also find diminishing returns of cross-selling opportunities on customer satisfaction, implying that an optimum level of cross-selling opportunities exists. •Examine cross-selling for solution offerings in the post-deployment phase•sales-service cooperation has important role in cross selling solution offerings•value assessment tooling substitutes effect of solution offering in driving cross-selling opportunities
Author Schepers, Jeroen J.L.
Nijssen, Edwin J.
van der Borgh, Michel
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Keywords Sales-service cooperation
Cross-selling
Product-service solutions
Solution modularity
Value tools
Servitization
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Snippet Cross-selling for solution offerings in the post-deployment phase is under-researched. This study posits that although providers of solution offerings have...
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StartPage 122
SubjectTerms Cross-selling
Product-service solutions
Sales-service cooperation
Servitization
Solution modularity
Value tools
Title Unleash the power of the installed base: Identifying cross-selling opportunities from solution offerings
URI https://dx.doi.org/10.1016/j.indmarman.2022.11.010
Volume 108
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