KPIs (Key Performance Indicators) are essential for measuring the success of not only your business, but the overall health and efficiency of your operations and sales processes. A pitfall we have seen in the Service Revenue Generation industry is that companies tend to be too myopic in what measurements and areas they focus on for their KPIs. Most Service Revenue Generation organizations mainly focus on Renewal Rate to measure the health of the business. While renewal rate is a critical KPI, it should not be the only KPI used. Likewise, digging deeper into how renewal rate is calculated will also shed a good deal of light on the state of your Service Revenue Generation business. It is imperative that organizations with a focus on Service Revenue Generation keep in mind that not all KPIs should be company-wide. It is just as important to create and measure KPIs for each [...]
Why Organizations Within the Channel Should Consider Staff Augmentation to Grow Their Maintenance Practice
Once an IT provider sells a piece of IT equipment, it’s tempting to simply close the door and move on to the next sales opportunity – especially when that product is already under warranty. But warranties expire, which quickly leads to maintenance contracts, which can ultimately lead to profitable relationships with customers. And failure to address and nurture opportunities as they expand ultimately results in hundreds and thousands of dollars in lost revenue. A successful maintenance practice looks beyond the final point of sale and instead focuses on the lifecycle of the contract and the opportunity to build long-term customer relationships. The challenge most channel organizations face, however, is the lack of resources and expertise to create a successful nurture program. Internal sales teams, for example, may not have the marketing and reporting expertise needed to develop a sustainable growth plan or the technology used to manage service lifecycles may [...]
To put it gently, IT providers have a lot on their plate. From different levels of service to varying contract lengths and unique reporting needs, these companies have their hands full staying on top of service renewal lifecycles. Despite this immense complexity, a surprising number of companies continue to use rudimentary contract management solutions that slow business operations and exacerbate workplace inefficiencies. Managing a multidimensional service ecosystem with disparate data sources can leave IT providers struggling to make sense of their service and product lifecycles. A global hardware manufacturer, for example, will quickly discover that antiquated applications or CRM systems alone can’t process high volumes of data or deliver the business insights they need. Complex problems are rarely solved by simple solutions. Ironically, many IT manufacturers and providers are hesitant to upgrade their toolkits. A recent survey found one in four technology providers don’t have tools to manage their product and service [...]
The IT channel is in a state of flux. New competitors and shifting customer behavior are redefining the game for manufacturers and each of their downstream partners. Amazon, for instance, recently entered the managed services arena, signalling a paradigm shift on-par with what the technology behemoth did to traditional bookstores. As enterprise software vendors trend toward as-a-service delivery models, resellers are shifting their focus from products to services (as well as proprietary IP). Recently, vendors from Dell EMC to Kaspersky Labs and Google have unveiled new or improved partner programs to maximize their revenue potential. Confronted with this widespread change, technology manufacturers are quickly realizing they can’t phone in channel partner relationships. As hardware and software become more commoditized, maintenance and support are one of the few remaining areas that drive healthy margins. For manufacturers to maintain this critical annuity revenue, they need to put the right tools in the [...]
Is Your Contract Lifecycle Management Software Allowing You to Address 100% of Service Revenue Opportunity?
If so, you are definitely in a class of your own! In fact, data suggests that technology providers are missing out on up to 36% of the service contract revenue available to them. For many manufacturers and their channel partners, this missed opportunity is the end result of failing to properly implement and utilize contract lifecycle management software to manage and renew upcoming (often low-dollar / high-volume) contract renewals. Fortunately, new best practices are emerging centered around utilizing SaaS contract lifecycle management software for more effective service contract management. What is a “Low-Dollar” Contract? A low-dollar contract is typically a contract with a 1:1 ratio, meaning that it represents just one piece of equipment or service per contract. These types of contracts typically come in high volumes, with total contract values of less than $25k. These contracts must be renewed by the customer in order to continue service protection for assets or products that they already [...]