The message surrounding the importance of building recurring revenues around service contract management and maintenance has been repeated so often that many have become numb to the opportunity. The reality is most manufacturers, distributors, and resellers understand the importance, but don’t know how to maximize their service revenue potential. The obstacles are most often very formidable.
- Simple systems (and spreadsheets) do not handle the complexity of service contracts.
- Getting data right is half the battle and your organization is probably losing this battle.
- Service and product data are often housed in multiple, disparate systems. Lacking key integrations features with internal CRMs or ERPs, companies are left without clear visibility of upcoming sales opportunities.
- The systems many providers use lack critical automation features, such as proactive notifications and alerts, and automated quoting, that would otherwise expedite service delivery lifecycles.
- Failure to provide downline customers access to critical contract and product data results in a lackluster customer communication and renewal strategy.
Many providers are missing the opportunity that proper contract management can afford them – increased renewal rates, identification of new sales opportunities, increased customer loyalty and retention, and new customer acquisition. These companies literally walk by millions of recurring revenue dollars each year.
Are you looking to implement a solution to maximize service revenue and opportunity? Here are a few tips. Best-in-class solutions should include the ability to provide robust reporting and support contract renewal notifications to your downline; accommodate a myriad of data requirements, seamlessly integrate with your billing system, CRM, and/or ERP systems and be flexible enough to work within your own business requirements. Does it need to be global? Multi-currency? Account for different contract requirements and/or billing options? Do you build it yourself or is there someone out there who can ‘tailor’ a contract management solution/engine to meet your needs?
Let MMI help you to develop a plan to overcome your service revenue challenges and put you on the path to increased service revenues and profit, higher customer satisfaction, and streamlined approach to service delivery.
Contact Scott Uttenreither at email@example.com to find out how we can help, or you can start off by taking our complexity survey. This will help you get a better idea of the complexity factors that are keeping you from maximizing your service revenue potential.