contract lifecycle management (CLM) has proven to be wanting, because guess what? No two contracts are the same, and rarely will contracts have the same details
My daughter Chloe’s soccer team, Palo Alto High Girls Varsity (@PalyGirlsSoccer), has been on a winning streak this season. And yes, you can predict what I will say next: I am a proud-standing-taller-these-days-soccer-Mom because her team is winning. But what if I could predict a win for her and her teammates at the upcoming CCS championship game by prescribing what actions they should take? (By the way, for you women soccer fans, you can follow Chloe’s career on Twitter @ChloeJapic and YouTube. You won’t be disappointed.)
Prediction tells you what will happen, but better yet, prescription tells you what to do to make something happen. The face of soccer would change in an instant if that was the case for sports, but alas it's not. The good news is that the face of business is changing because you can use prescriptive analytics to drive future revenue growth and avert risk.
In my new role as CMO at Pramata, my goal is to spread the word far and wide about this hot customer digitization company. We do a lot of thinking about the power of being able to prescribe what to do to get the best outcomes for our customers. To be prescriptive you must create a constant cycle of actionable data, outcomes, and feedback to help refine and hone in on how to best achieve your desired goals. And, that’s exactly what Pramata does for our customers.
Pramata CEO, Praful Saklani, mused a few weeks back about the irony of predictive analytics and its role in perhaps the most unpredictable election outcome in U.S. history. What if party strategists had gone one step further into a truly prescriptive mode? What could they have predicted then? I guess we’ll never know.
Even though the political world didn’t use this approach, businesses can apply a more prescriptive model to optimize a number of processes and operations. The most broadly relevant—and arguably the most valuable—is optimizing and prescribing actions to grow revenue. In fact, a Pramata customer recently shared that the actionable insights he derived from Pramata was the difference between making his number and not making it.
Why settle for prediction when we can make hitting your goal so much more achievable with prescriptive analytics? Here’s hoping for a win at the upcoming CCS Championship for Chloe and the Paly team. And, here’s to prescribing a revenue win for Pramata customers.
Calling all tech dinosaurs. You know who you are.
Or do you?
I was talking to some colleagues last week, and the topic of “tech dinosaurs” came up. The first thing most of the group thought of were examples of technology products that weren’t keeping up with the Jones’ (or Jetsons’ as it were.) Tech companies who find their products closer to the blunt end versus the bleeding edge of innovation. A Kodak moment, anyone?
And while an aging product certainly impacts tech business success, the particular dinosaur I’m thinking about isn’t threatened with extinction because of a lack of product innovation, but rather a lack of customer relationship innovation. Specifically, with respect to a company’s existing customer base.
We’ve all read the studies about the cost of acquiring new customers versus retaining the ones we have—that it’s anywhere from five to 25 times more expensive to acquire new accounts. Harvard Business Review talks about the value of keeping and growing the right customers, and the dreaded churn rate. While losing customers altogether to churn can cause a hit to revenue numbers, so can an idle customer with a complex—and potentially lucrative—relationship that you simply aren’t tapping into.
Large B2B technology business leaders know 80 percent of next year’s revenue will come from this existing customer base. Yet many haven’t addressed the significant gaps within their customer lifecycle that leak millions of dollars in profits every quarter.
Evolving your product is critical, but if you aren’t also harnessing and acting on the rich revenue value sitting within complex customer relationships, you could soon find yourself on the edge of extinction.
Learn more about revenue leakage, profit threats and how other B2B leaders have evolved to overcome them by finding hidden revenue opportunities within their existing customer base. Download our ePaper, Traditional Tech Dinosaurs Face Extinction.