SaaS businesses today are looking for ways to do more with less. And while maintenance and subscription renewal services retain a significant portion of their profitability, businesses are still looking for better, smarter ways to build this critical annuity pipeline.
Here’s Why You Should Automate Maintenance Renewals:
1) Increase Renewal Revenue While Improving Customer Satisfaction
Because Renewal Management Software allows you to interact with more of your customers, it is assumed that your bottom line will improve your customer base. However, you might be surprised to learn where those increases will come from. Not all maintenance renewal and subscription renewal notices result in high renewal rates.
Many resellers and SaaS companies are seeing an increase in net new hardware and software revenue as a result of the notification that machines are no longer under warranty. End-user customers also perceive increased value from resellers and channel partners who have invested in automation such as renewal management software, which leads to increased customer satisfaction.
2) Connecting with a Larger Portion of Your Account Base
The 80-20 rule applies to the vast majority of businesses. Because 20% of your top customers drive 80% of your business, many resellers lose sight of the revenue renewal rate associated with the majority of their account base. Also, with fewer employees and fewer feet on the ground, how do you free up your sales teams to focus on higher-profile accounts, and strategic opportunities and prevent customer churn?
By automating your maintenance and subscription renewals, you will be able to easily touch and market to 100% of your account base and to those customers who renew. As a result, your retention rate increases without increasing your effort or headcount. Many software solutions now allow you to customize the messaging associated with automated renewal notices.
3) Allow Your Administrative Staff to Concentrate on Strategic Opportunities
Not only does automation help you reach more customers, but it also frees up time for your valuable resources back at headquarters. Your administrative and inside sales teams may be focusing too much on researching and calculating renewals rather than driving the strategic deals that your sales teams are working on. This constant customer churn can cause long-term stress and wasted cycles for your internal teams.
When considering ways to increase your organization’s visibility, customer satisfaction, renewal revenue, customer retention and cost of sales, remember to think outside the box and consider ways to automate some of your key functions.
Maintenance and Subscription Renewal – How it Works
The step-by-step process of Automated Renewal Management of Dalos.