Don’t be the One-Hit Wonder 5 steps to reduce churn

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Who sang “Macarena”?

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Who sang “I Can’t Get No Satisfaction”?

5 steps to reduce churn

1. Do the math

2. Use data to empower your team

3. Accelerate with analytics

4. Sell and execute with scientific precision

5. Build a loyal fan base through channel partners

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Step 1: Do the math

For a $100M Company

40% of $100M is $40M

70% renewal rate=$28M

80% renewal rate= $32M

$4M gap

40%

$100M $40M

70% 80% $60M over 5 years

#DF13 insight: @ServiceSource says due to the power of compounding, a $4M increase in #recurringrevenue translates to $60M in 5 years

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Step 2: Fuel up with renewal-ready data

Data

5-7

45

40

Systems typically accessed for a single renewal

Time spent selling by sales people*

Business initiatives that fail to meet objectives due to poor data quality*

*Source: Gartner

%

%

#DF13 insight: @ServiceSource says renewals sales reps spend < 50% of their time selling due to time spent gathering and prepping data

Renewal Ready Data - Piecing it Together

SFA (n) QUOTE ORDER ENTITLEMENT

Company License Key Support Level Price Exp. Date

Pfizer Inc A243210.1 Bronze 8x5 $10,500 12/31/13

9

#DF13 insight: @ServiceSource says renewals data is typically managed on 5-7 different systems, resulting in many overlooked opportunities

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Step 3: Accelerate with analytics

Churn Risk Analysis

Decreasing Usage Increasing Usage Heavy User Low Adoption

In-Quarter Renewal Rate

Carryover In-Quarter Future

KPIs that Drive Performance

1. Renewal Opportunity

2. Renewal Results

3. Sales Process

4. Performance Drivers

5. Customer Success

Conversion Rate

Original Estimated

Opportunity

Booked Value

of Closed Contract

Conversion Rate: 110%

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Step 4: Sell and execute with scientific precision

14

Precision Culture – Setting Up for Success

Role

specialization

Did you know? Only 21% of

companies have a dedicated renewals

team*

Transparency Forecasting Automation

#DF13 insight: According to @ServiceSource, only 21% of companies have dedicated renewals sales teams. #recurringrevenue

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Step 5: Give the channel a seat at the table

Channel Sales

1/2 <1:5 12 pt.

30

20

10 Channel Direct

#DF13 insight: @ServiceSource says on average, direct renewals sales teams outperform #channel sales by 12% #recurringrevenue

Channel portal

Compare Partner

performance

Forecasting

Analytics

History

Quotes

Deals

Benchmark Industry Renewal Rates

Hardware Software XaaS Healthcare/ Life Sciences

Industrial/ Manufacuring

71.8%

90.1%

71.8%

92.8%

73.5%

84.9% 75.8%

88.3%

78.8%

93.5%

Before After

Opportunity for 18% improvement

Delivering Results

20% Faster Revenue Growth

25% Higher Profit Margins

ServiceSource Fortune 1000 customers compared to their peers

$14B

47 Seconds

#DF13 insight: @ServiceSource says companies that reduce #custchurn & increase #custloyalty have 25% higher profit margins than their peers

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