I frequently speak with tech companies who depend heavily on service revenues to push bottom line growth and believe they have fantastic processes in place for renewing contracts and services. They think they've got it covered and don't need to make any changes to the status quo. Here's what they usually end up telling me:
"Our renewal rates are the BEST in the industry."
One VAR I heard from recently said exactly this just months before filing for Chapter 11 bankruptcy. Unfortunately, this vote of confidence is often a tell-tale sign of underlying challenges. If you've found yourself insisting that your renewal rates are the best, read on to make sure you're not falling into the same trap.
Automation is Vital (And if You're Not Doing It, You're Just Wasting Time)
As with any business that wants to expand market share and profit, a customer staying a customer is key to your survival. The next question is, which proactive measures are companies using to ensure they retain their recurring revenues? One answer—AUTOMATION! Automate what you can, where you can. Automation is the future and this simple change to your service renewals process can lead to:
- Reduced churn
- Limiting the chance that your customer jumps to a competitor
How Can Automating your Service Renewals Help?
So, we know that automation will keep you ahead of the curve and we’ve highlighted some of the benefits of automation, but how can automation help? Well, by sending proactive, automated email notifications to your customers, you can:
- Accelerate the sale
- Increase your revenues by an average of 30-40% and increase your profits by an average of 50%
These automated email notifications serve two purposes:
- Getting your customer to act EARLY and renew well before the end-date of their contract service
- Fend off any of your competitors or 3rd party providers (who circle like sharks just waiting to get their foot in YOUR customer's doors!)
Automation is a simple way to really "have it together" and can help you achieve "the BEST renewal rates in the industry."
Looking for ways to automate your contract service renewals? Request a ONEview demo and see if our contract renewal and quoting application is the right solution for you.