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.
www.tsia.com
Key Research Trend #1
of benchmarked companies execute an effective AutoRenew program.
23%
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
www.tsia.com
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.
www.tsia.com
Key Research Trend #2
of customer payments utilize purchase orders.
94%
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
www.tsia.com
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
www.tsia.com
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.
www.tsia.com
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.
www.tsia.com
To take the friction out of your renewal process and reduce customer attrition, TSIA research provides prescriptive advice on adopting 3 frictionless renewal capabilities.
www.tsia.com
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?
www.tsia.com
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?
www.tsia.com
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?
www.tsia.com
Set a goal to decrease your customer attrition rate by 2 to 5 points…
…let TSIA’s Service Revenue Generation show you how.
www.tsia.com
© Copyright 2016 Technology Services Industry AssociationSource: 2016 TSIA Service Revenue Generation Benchmark Study
www.tsia.com
Find out what other trends are impacting your annual recurring revenues in 2017.
Download the State of Service Revenue Generation Today
Top Related