Webinar: 5 steps to maximize recurring revenue


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Are you maximizing your recurring revenue performance?
Did you know $30 billion in recurring revenue goes unrenewed each year?

ServiceSource & Rockwell Automation share 5 proven best practices to help industrial system companies boost and retain more revenue.

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Webinar: 5 steps to maximize recurring revenue

  1. 1. 5 Steps to Maximize Your Recurring Revenue 1 ServiceSource Confidential Information
  2. 2. Today’s presenters Ashley Stirrup SVP, Product & Solution Marketing ServiceSource Cathy Langlois Director, Remote Support Services Rockwell Automation Glenn Johnson Director, Industrial Systems ServiceSource ServiceSource Confidential Information
  3. 3. The 5 secrets for recurring revenue success ServiceSource Confidential Information
  4. 4. The steps 1.  Do the math 2.  Fuel up with renewal ready data 3.  Accelerate with analytics 4.  Sell and execute with scientific precision 5.  Give the channel a seat at the table ServiceSource Confidential Information
  5. 5. Step 1: Do the math ServiceSource Confidential Information
  6. 6. Recurring revenue Company trajectory Segments addressed Profitability Strategic Recurring sales New sales Year ServiceSource Confidential Information Enterprise SMB
  7. 7. Step 2: Fuel up with renewal-ready data ServiceSource Confidential Information
  8. 8. Data 5-7 Systems typically accessed for a single renewal 45% Time spent selling by sales people* 40% Business initiatives that fail to meet objectives due to poor data quality* *Source: Gartner ServiceSource Confidential Information
  9. 9. Renewal ready data– piecing it together Theatre Business Line Territory ABC Business Unit NALA + 12 Strategic Company Product License Key Support Level Begin Date Exp. Date Pfizer Inc A5000 A243210.1 Bronze 8x5 1/1/13 12/31/13 Price Contact Name $10,500.00 Bob Greene Opportunity in Renew SFA (n) PRM SERVICE QUOTE ORDER ENTITLEMENT ASSETS 9 ServiceSource Confidential Information
  10. 10. Step 3: Accelerate with analytics ServiceSource Confidential Information
  11. 11. What if… You could see how often each sales rep and partner is contacting your customer for renewal… You knew exactly why customers leave… You could track how many days in advance of expiration you are renewing… ServiceSource Confidential Information
  12. 12. The KPIs that drive performance Conversion Rate Cancellation Reason Analysis In-Quarter Renewal Rate 1.  Renewal Opportunity 2.  Renewal Results 3.  Sales Process Product EOL 4.  Performance Drivers 5.  Customer Feedback Carryover Conversion In-Quarter Delay Future Rate: 110% Processing ü  Frequently Valuetracked Original Booked not Order Estimated of Closed often because it is Competitive Opportunity Contract the total lower than Replacement renewal rate ü  Track value selling and ü  Understand can Where you why ü  service upgrades gain an understanding of true customers are deciding ü  Ensure all assets are performance not to under covered renew the ü  Visibility into Drive ü  contractbetter purchase performance trends ü  “What If” Analyses to ü  find potential Ward off attrition with better marketing and value-selling ServiceSource Confidential Information
  13. 13. Step 4: Sell and execute with scientific precision ServiceSource Confidential Information
  14. 14. Precision culture – setting up for success Role specialization 3 •  •  •  key roles Sales manager Sales rep Ops Forecasting Transparency Automation Top down and bottoms up for greater accuracy (+/- 3%) Metrics to let others know how they’re performing against targets and daily performance Of cumbersome tasks, built in task management, KPI roll ups Did you know? Only 21% of companies have a dedicated renewals team* *ServiceSource benchmark study ServiceSource Confidential Information
  15. 15. Step 5: Give the channel a seat at the table ServiceSource Confidential Information
  16. 16. Channel tools ServiceSource Confidential Information
  17. 17. Channel portal All renewal info in one place Compare View comparative Partner performance performance ServiceSource Confidential Information
  18. 18. Benchmark Industry renewal rates* Industry Average Renewal Rate (before) Renewal Rate (after) Hardware 71.8% 90.1% Software 71.8% 92.8% Xaas 73.5% 84.9% Healthcare/Life Sciences 75.8% 88.3% Industrial/ Manufacturing 78.8% 93.5% * Rate calculated by (resolution rate * close rate * conversion rate). ServiceSource Confidential Information Opportunity for 18% improvement
  19. 19. Cathy Langlois Rockwell Automation, Inc. Director, Remote Support Services ServiceSource Confidential Information
  20. 20. A little about us….. §  About Rockwell Automation and Remote Support Services §  I will share with you…. §  Rockwell Automation’s view of the business problem. §  Why we were engaged with ServiceSource. §  Why the Service Performance Analysis benchmarking study was so beneficial to my business. COMPANY CONFIDENTIAL - Internal Use Only ServiceSource Confidential
  21. 21. How do we grow the business? Enterprise and Corporate Contracts •  Global and Corporate Accounts •  Large End Users •  Represents 20% of the Revenue but 5% of the Contracts Midsize - Contracts •  End Users and OEMs •  Represents 35% of our potential customers Small Contracts •  End Users and OEMs •  Represents 60% of the contract base •  Usually distributor/house accounts COMPANY CONFIDENTIAL - Internal Use Only We did really well here! We did ok here! We didn’t do well here!! ServiceSource Confidential 21
  22. 22. What did ServiceSource bring? §  Focused only on recurring revenue. §  Impressive list of leading technology customers. §  Extensive experience driving results through a channel model. §  Fast time to benefit. Live 60 days after contract signature. §  Service Performance Analysis benchmarking process. §  Ability to solve our specific problem by attacking deficiencies in data, analytics, sales methodology, and coverage. COMPANY CONFIDENTIAL - Internal Use Only ServiceSource Confidential
  23. 23. Service Performance Analysis (SPA) §  Why did Rockwell Automation invest in this analysis? §  What were the benefits to us? §  Provided a complete picture. §  Helped us understand how to invest. §  Created a fact based plan to drive change. COMPANY CONFIDENTIAL - Internal Use Only ServiceSource Confidential 23
  24. 24. Glenn Johnson ServiceSource Director, Industrial Systems ServiceSource Confidential Information
  25. 25. We are the market leader Focused exclusively on recurring revenue for 13 years Software Hardware LOCATIONS WORLDWIDE: Networking Healthcare & Life Science Industrials $9B Recurring Revenue under management 47 seconds A renewal is closed 145+ Engagements worldwide ServiceSource Confidential Information
  26. 26. Evolution of ServiceSource Best Practice Business Process Scalable Expertise Pay for Performance Selling on behalf of customers Renewals Data & Technology Applications, & data management tools we do it for you ServiceSource Confidential Information Cloud Application First purpose-built cloud app designed to increase recurring revenue • Data management & opportunity generation • Sales strategy and execution • Insight & optimize Hybrid solution that includes selling & enablement services we enable you
  27. 27. We analyze key areas of your business to pinpoint areas of the business which can be optimized to deliver more revenue Data Management (Opportunity Ready Data) Performance Management, Analytics, and Systems Recurring Revenue Management Sales Enablement and Automation ServiceSource Confidential Information Value Proposition and Entitlement Sales: Direct and Channel (Planning & Execution)
  28. 28. Thank you! For more information visit www.servicesource.com ServiceSource Confidential Information