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820-605 · Question #18

In a cloud implementation scenario, what does the sales professional must take into consideration regarding the revenue of a business outcomes selling?

The correct answer is C. Revenue from this model is realized over a longer period of time. In cloud and business outcomes selling, revenue is typically realized gradually over an extended period, reflecting the ongoing nature of services and value delivery.

Customer Success Industry Trends and Drivers

Question

In a cloud implementation scenario, what does the sales professional must take into consideration regarding the revenue of a business outcomes selling?

Options

  • ARevenue from this model could increase in a 25%.
  • BRevenue from this model is immediate.
  • CRevenue from this model is realized over a longer period of time.
  • DRevenue from this model is three times bigger than in the traditional product selling.

How the community answered

(40 responses)
  • A
    3% (1)
  • C
    95% (38)
  • D
    3% (1)

Why each option

In cloud and business outcomes selling, revenue is typically realized gradually over an extended period, reflecting the ongoing nature of services and value delivery.

ARevenue from this model could increase in a 25%.

A specific percentage increase like 25% is an arbitrary number and not a general characteristic of revenue realization timing.

BRevenue from this model is immediate.

Revenue in outcome-based or cloud models is rarely immediate; it's typically spread out as services are consumed or outcomes are achieved over time.

CRevenue from this model is realized over a longer period of time.Correct

Business outcomes selling often involves recurring revenue models like subscriptions or consumption-based services, which means revenue is recognized incrementally over the contract term as services are delivered and value is realized. This contrasts with traditional product sales where revenue is often recognized upfront.

DRevenue from this model is three times bigger than in the traditional product selling.

A specific multiplier like 'three times bigger' is an arbitrary claim and not a general characteristic of how revenue is realized over time.

Concept tested: Revenue realization in outcome-based selling

Topics

#cloud implementation#business outcomes selling#revenue realization#subscription model

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