How to Make Your Renewals Frictionless
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www.tsia.com How to Make Your Renewals Frictionless Service Revenue Generation
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Transcript of How to Make Your Renewals Frictionless
www.tsia.com
How to Make Your Renewals Frictionless
Service Revenue Generation
www.tsia.com
Creating a frictionless renewal landscape is vital to ensuring recurring revenue growth. Here’s a look at the top 3 renewal friction points to avoid and the top 3 capabilities you can adopt to set your renewals in motion.
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Key Research Trend #1
of benchmarked companies execute an effective AutoRenew program.
23%
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
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Friction Point #1: Never Ending Contract Negotiations
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
Why This Matters…Over 75% of companies leave themselves open to term and price negotiations with their customers every year.
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Key Research Trend #2
of customer payments utilize purchase orders.
94%
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
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Friction Point #2: Inefficient Payments
Why This Matters…Purchase orders are slow and expensive for your company and your customers.
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
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Key Research Trend #3
Source: TSIA Service Revenue Generation Benchmark Studies, Q1 2017
16% 26% On-premise Cloud
of SMB customers are not contacted prior to contract expiration.
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Friction Point #3: Renewal Coverage Gaps
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
Why This Matters…Renewal coverage models are sub-optimized, resulting in revenue erosion and/or customer attrition.
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To take the friction out of your renewal process and reduce customer attrition, TSIA research provides prescriptive advice on adopting 3 frictionless renewal capabilities.
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Capability #1: Implement Standard, Perpetual Terms
Source: TSIA Service Revenue Generation Benchmark Study, Q1 2017; N = 66
Transition customers to perpetual terms to achieve higher renewal rates and lower customer attrition
Automate quote generation
For a $300M recurring revenue business:• 1.2 pts of renewal rate improvement is $3.6M• 5 pts pf renewal rate improvement is $15M
Did you know?
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Capability #2: Efficient Customer Payment Methodologies
Source: TSIA Service Revenue Generation Benchmark Study, Q1 2017; N = 66
Offer purchasing card payment options (B2B credit cards)
Allow customers to renew online
Purchasing card usage is growing exponentially, accounting for:• $245B of transactions in North America• 12% growth for B2B purchasing card transactions
Did you know?
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Capability #3: Optimize Coverage Models For Renew & Adopt
Source: TSIA Service Revenue Generation Benchmark Study, Q1 2017; N = 66
Increase customer-facing resources
Pivot to customer adoption & business outcomes
• Reducing investment in back office functions can free up investment for customer-facing activities
• Creating value is your best shot at making the renewal a non-event
Did you know?
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Set a goal to decrease your customer attrition rate by 2 to 5 points…
…let TSIA’s Service Revenue Generation show you how.
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© Copyright 2016 Technology Services Industry AssociationSource: 2016 TSIA Service Revenue Generation Benchmark Study
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Find out what other trends are impacting your annual recurring revenues in 2017.
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