webinar: 5 steps to maximize recurring revenue

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5 Steps to Maximize Your Recurring Revenue

ServiceSource Confidential Information

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


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


Step 1: Do the math


Profitability

Year

Recurring revenue

New sales

Recurring sales

Strategic

Enterprise SMB

Company trajectory Segments addressed


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


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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Step 3: Accelerate with analytics


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…


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


Step 4: Sell and execute with scientific precision


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


Step 5: Give the channel a seat at the table


Channel tools


Channel portal All renewal info in one

place

View comparative performance

Compare Partner

performance


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).


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.


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!!


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.


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


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


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


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


Thank you!

For more information visit www.servicesource.com