Complex commercial relationships exist in a number of large B2B organizations. But for colocation services and data center real estate companies, managing these relationships brings its own kind of chaos. These are massive operations, providing services to hundreds or even thousands and tens of thousands of customers. And within those accounts exists myriad assets and service entitlements.
When I talk to colocation companies, I’m amazed at the amount of manual heavy-lifting they do just to keep tabs on the basic terms of these complicated contracted agreements. Does the CRM align with the asset management system info and what about billing, and how does it all map back to the actual contracted terms?? It’s overwhelming to even try to generate a clean, accurate bill—let alone seek out additional revenue dollars.
Revenue leakage happens
Like so many other companies, colocation service providers allow fragmented sources and systems to leave them wide open to revenue leakage. Siloes of contract and billing information leave teams with an incomplete view of each commercial relationship when they need it most, like during potentially lucrative renewals.
Missed service activation dates, overlooked price increases, over-servicing customers—these are just some of the additional gaps where sizable revenue escapes every quarter. Without complete, accurate, up-to-date information, companies can’t capture every drop of current revenue commitments, let alone optimize upsell and expansion to grow customer lifetime value.
Calming the chaos
Best-in-class colocation companies have found a way to automate how they compile, organize and access the commercial relationship data they need to capitalize on big revenue events. By knowing product renewal tails, applying cost pass-throughs and ramps when appropriate, and understanding current SLAs with complete certainty, they’re taking huge steps to:
- Improve renewal management and execution
- Maximize contracted pricing variables
- Simplify entitlements management and billing reconciliation
- Boost sales process productivity
For colocation companies that thrive on complex, multi-faceted relationships, targeting and eliminating revenue leakage automatically reaps big time rewards.