Put the Service Back in Technology

I meet with plenty of technology companies who sell to marketers and agencies and  I also meet with many marketing and advertising technology startups who are pitching for venture funding.  Sometimes they are one and the same.

I’ve been witnessing companies coming thru the door and telling me that they are a pure technology platform, not a service business.  Most of the time, their motivation to say this is to achieve a technology multiple (on sale) versus a service business multiple.

I think this is faulty and a mistake.

There is nothing wrong with wrapping services around a technology, especially in the early days of your company.

If your idea is new and unique, then most marketers or their agencies will have no idea how to build the assets necessary to deploy on your technology platform; thus a service business is needed.

If your idea isn’t overly unique, marketers and agencies still generally want help to get assets created or implemented.  A services group can help enable this to happen.

At the end of the day, as a startup or technology company, you want marketers or their agencies to have the best possible experience when using your platform.  I define experience by performance and service.  This will have a higher chance of keeping them back (and the dollars flowing).    By creating an organization that can enable this to happen (creating the right assets, trafficking properly, building KPI’s and metrics), you are at least starting off the relationship on the right foot.

Put the service back in technology.  It’s not such a bad thing.

 

  • Kip Voytek

    Agree and then some. Software AND a service is not only smart for early stages, it still makes a lot of sense for complex software, or platforms that can do many things in many different combinations. I attribute much of the bloated software of the 2000s (eg, CRM, CMS, community mgmt) to trying to build “lights out” programs that require no service.