An increasing number of business-to-business (B2B) service firms have transitioned to recurring revenue-based solutions. These subscription B2B solutions are becoming increasingly common, yet offer challenges for long-term renewal if value is not consistently realized by the customer. To address this concern, customer success (CS) management has emerged. CS management is based on regular proactive action taken by the seller to (a) educate, prepare, and engage customers for value co-creation; (b) demonstrate the value delivered by the solution; and (c) provide a channel for advocacy on behalf of customers within the service-providing firm. Our findings highlight the under-researched topic of CS in B2B settings. Specifically, we propose the CS function and role as a structural alternative to within-person (i.e., cross-functional) ambidexterity and emphasize the ability of a CS focus by service firms to complement existing firm operations in value creation efforts. Our case study analysis provides a multilevel perspective (i.e., executive, functional role employees, and customers) via in-depth interviews that offer unique insights on “how parts of the service-sales system work together.” Overall, CS is growing as a practice that propagates value to the customer via ongoing success with solutions while improving service-firm renewal and growth of subscription business.
Purpose
Despite the recent growth of the do-it-yourself market, very little is known as to how or why individuals actually choose to engage in prosumption behavior. The purpose of this study is to specifically examine the decision process of actors when determining the level of resource commitment and integration necessary to prosume or consume a service, thus offering insights to both managers and academics alike.
Design/methodology/approach
A multi-method study using both qualitative and quantitative research examines the decision of actors to consume or prosume a service. A conceptual model is presented and tested.
Findings
The results identify the primary drivers individuals considered when evaluating the resource commitment necessary for a make or buy decision. This research offers empirical support for the application of transaction cost analysis as an appropriate theoretical explanation of how actors decide to prosume or consume a service. The authors further suggest, based on these findings, that transaction cost analysis is a viable middle-range theory to explain the commitment and sharing of resources between actors engaged in co-production within the perspective of a service-dominant logic.
Research limitations/implications
Future research is needed to identify opportunities for hybrid models that consider the appropriateness of these findings within larger service networks, as well as potential moderating or mediating influences of the direct effects identified and investigated.
Originality/value
This study offers an initial attempt to provide a theoretical explanation for the resource integration decisions (e.g. make or buy) faced by individuals in a growing segment of the economy. The findings enable better informed strategies to be identified by both service providers and retailers.
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