Strategic Move — Convert Product+Service → Business-as-a-Service by Q4-2026
From one-off deals to recurring outcomes: package value, meter usage, automate delivery.
Power Statement
Package outcomes, not items: launch tiered BaaS with subscription + usage + gain-share, cut working capital, and lock in ≥70% recurring revenue with 65–70% gross margin by Q4-2026.
North Star & Targets (by Q4-2026)
| KPI | Definition | Target | Why it matters |
|---|---|---|---|
| Recurring Revenue Mix | % of revenue on subscriptions/usage | ≥70% | Predictable cash flow & valuation uplift |
| Gross Margin | (Rev − Delivery COGS)/Rev | 65–70% | Scales via automation & standard scope |
| Net Revenue Retention (NRR) | Expansion − churn | ≥110% | Grow existing accounts |
| CAC Payback | Months on GM basis | ≤6 months | Capital efficiency |
| Time-to-Value (TTV) | Contract → first result | ≤30 days | Sticky adoption |
| Churn | Gross logo churn | ≤1.5%/mo | Protects ARR base |
| ROCE | EBIT ÷ Capital Employed | +500–700 bps vs 2024 | Asset-light, WC reductions |
BaaS Offer Architecture
| Tier | Value Package | SLA | Commercials (Illustrative) |
|---|---|---|---|
| Essential | Core platform access, monthly advisory, KPI dashboard, email support | Resp <48h | €2–4k/mo subscription |
| Growth | + automation templates, integrations, 2 sprints/quarter, health reviews | Resp <24h • 1-day turnaround | €6–9k/mo + usage (€0.0X/unit) |
| Outcome+ | + dedicated success lead, telemetry, custom models, governance | Resp <4h • 8h turnaround | €15k+/mo + usage + gain-share (e.g., 10–20% of verified savings) |
Monetization = Subscription (access & cadence) + Usage (fair metering) + Gain-Share (verified outcomes).
Conversion Roadmap (Q3-2025 → Q4-2026)
Q3-2025 • Define & Pilot
- Map current offerings → 3 standard BaaS packages (scope, limits, KPIs).
- Stand up client portal (onboarding, tickets, dashboards, usage metering).
- Pilot with 3–5 existing clients; measure TTV & delivery effort.
Q4-2025 • Launch v1
- Publish pricing + SLAs; migrate 25–35% of eligible clients.
- Automate onboarding (checklists, data intake, standard configs).
- Case proofs (quantified ROI) for 3 lighthouse accounts.
Q1-2026 • Scale
- Implement health scoring & QBR playbooks; expansion add-ons.
- Partner channel (2–3 resellers/SIs) with revenue shares.
- Ops factory: SOPs, reusable assets, utilization ≤55%.
Q2-2026 • Optimize
- Telemetry → monthly value reports; surface upsell signals.
- Reduce COGS −10–15% via automation & templates.
- Content engine: weekly pillar, monthly webinar → CAC↓.
Q3-2026 • Expand
- Industry overlays (no custom code); localize legal & tax.
- Introduce outcome bands (gain-share brackets).
- Usage pricing refinement (tiers, caps, alerts).
Q4-2026 • Lock-In
- Renewals: index + expansion targets + exit terms.
- ISO-lite controls & data map for enterprise RFPs.
- Audit vs targets; publish 2027 BaaS growth plan.
KPI Trajectory (Illustrative)
| Quarter | Recurring Mix | Gross Margin | NRR | CAC Payback | TTV | Churn |
|---|---|---|---|---|---|---|
| Q3-2025 | 40% | 55% | 102% | 10 mo | 60 d | 3.0%/mo |
| Q4-2025 | 50% | 58% | 105% | 8 mo | 45 d | 2.5%/mo |
| Q1-2026 | 58% | 61% | 108% | 7 mo | 35 d | 2.0%/mo |
| Q2-2026 | 64% | 64% | 110% | 6 mo | 30 d | 1.8%/mo |
| Q3-2026 | 68% | 67% | 112% | 5 mo | 25 d | 1.5%/mo |
| Q4-2026 | ≥70% | 69–70% | ≥115% | ≤6 mo | ≤30 d | ≤1.5%/mo |
Tune to your baseline; use telemetry to drive expansion and early-warning churn saves.
ROCE Bridge (Illustrative, €m)
| Baseline | Δ EBIT | Δ Capital Employed | Result | |
|---|---|---|---|---|
| EBIT | €50 | +€30 (mix +18, COGS −9, scale +3) | — | €80 |
| Capital Employed | €600 | — | −€100 (WC −60, asset-light −40) | €500 |
| ROCE | 8.3% | Bridge via margin & capital release | 16.0% | |
Levers: standardize scope, automate delivery, reduce inventory/receivables, recycle non-core assets, index pricing.
Unit Economics Snapshot (Per Growth Tier Account)
| Item | Value | Notes |
|---|---|---|
| ARPU | €7,500 / month | Midpoint of €6–9k |
| Delivery Cost | €2,600 / month | People + platform + support |
| Gross Margin | 65% | Target steady-state |
| Avg Tenure | 18 months | With NRR ≥110% |
| LTV (GM basis) | €88k | ARPU × tenure × GM |
| Max CAC | €14–15k | To hit ≤6-mo GM payback |
Risks & Controls
- Scope creep → Tier SLAs + change-order menu + “what’s not included”.
- Delivery variability → SOPs, QA checklists, weekly ops review, playbook library.
- Churn risk → Health scores, QBRs, value reports, executive sponsor mapping.
- Cash strain → Quarterly prepay discounts, auto-billing, dunning policy.
- Enterprise blockers → DPA, security controls, data map, uptime reporting.
