webinar: 5 steps to maximize recurring revenue
TRANSCRIPT
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Today’s presenters
Glenn Johnson Director, Industrial Systems ServiceSource
Ashley Stirrup SVP, Product & Solution Marketing ServiceSource
Cathy Langlois Director, Remote Support Services Rockwell Automation
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The 5 secrets for recurring revenue success
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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
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Profitability
Year
Recurring revenue
New sales
Recurring sales
Strategic
Enterprise SMB
Company trajectory Segments addressed
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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
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Renewal ready data– piecing it together
Company Product License Key Support Level Price Contact Name Begin Date Exp. Date
Pfizer Inc A5000 A243210.1 Bronze 8x5 $10,500.00 Bob Greene 12/31/13 1/1/13
Theatre Territory Business Line
+ 12
SERVICE PRM SFA (n) QUOTE ORDER
ENTITLEMENT
ASSETS
NALA ABC Business Unit Strategic
Opportunity in Renew
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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…
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In-Quarter Renewal Rate
Carryover In-Quarter Future
The KPIs that drive performance
1. Renewal Opportunity
2. Renewal Results
3. Sales Process
4. Performance Drivers
5. Customer Feedback
ü Frequently not tracked because it is often lower than the total renewal rate
ü Where you can gain an understanding of true performance
ü Drive better performance
Conversion Rate
Original Estimated Opportunity
Booked Value of Closed Contract
Conversion Rate: 110%
ü Track value selling and service upgrades
ü Ensure all assets are covered under the contract
ü “What If” Analyses to find potential
Cancellation Reason Analysis
Product EOL
Delay Processing Order Competitive Replacement
ü Understand why customers are deciding not to renew
ü Visibility into purchase trends
ü Ward off attrition with better marketing and value-selling
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Precision culture – setting up for success
Role specialization 3 key roles • Sales manager • Sales rep • Ops
Did you know? Only 21% of
companies have a dedicated renewals
team*
Transparency Metrics to let others know how they’re performing against targets and daily performance
Forecasting Top down and bottoms up for greater accuracy (+/- 3%)
Automation Of cumbersome tasks, built in task management, KPI roll ups
*ServiceSource benchmark study
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Channel portal All renewal info in one
place
View comparative performance
Compare Partner
performance
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Industry renewal rates*
Benchmark
Opportunity for
18% improvement
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).
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Cathy Langlois Rockwell Automation, Inc. Director, Remote Support Services
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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.
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How do we grow the business?
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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
We did really well here!
We did ok here!
We didn’t do well here!!
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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.
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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.
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Glenn Johnson ServiceSource Director, Industrial Systems
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We are the market leader Focused exclusively on recurring revenue for 13 years
Software Hardware Networking Healthcare & Life Science Industrials
$9B Recurring Revenue under management 47 seconds A renewal is closed
LOCATIONS WORLDWIDE:
145+ Engagements worldwide
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Evolution of ServiceSource
we do it for you we enable you
Cloud Application
First purpose-built cloud app designed to increase recurring revenue Hybrid solution that includes selling & enablement services
Pay for Performance Selling on behalf of customers
Renewals Data & Technology Applications, & data management tools
Best Practice Business Process Scalable Expertise • Data management & opportunity generation
• Sales strategy and execution
• Insight & optimize
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Recurring Revenue
Management
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)
Value Proposition
and Entitlement
Sales: Direct
and Channel (Planning & Execution)
Sales Enablement
and Automation
Performance Management,
Analytics, and Systems