As many large B2B organizations look for ways to re-energize slower than planned revenue growth, too often they focus on the symptoms and miss the root cause of the problem. Commercial contracts, which contain a majority of customer relationship terms and details, often lack organization and accessibility—so businesses mistakenly think this is a process or workflow issue. Not realizing if they dug a little deeper, they would find the real problem—their sales ops team and account execs are missing critical contract, amendment and prevailing terms, and the data they do have is subject to individual interpretation.
In addition, previous orders that changed relationship terms are often overlooked, and available pricing terms usually lack all the conditional logic governing entitlements, discounts or other incentives. In other words, these teams have access to some but not all of the needed commercial relationship data to do their jobs and maximize revenue moments.
This relationship data often resides in a separate system or format from related transactional data, and sales teams simply do not have the time to do forensic research each time they need to analyze a customer account. It’s a real mess, and all the organizing and workflow efficiency in the world can’t solve it.
Many forward-thinking organizations have made the leap—or “crossed the chasm” if you will—to see that in fact, it’s not a process or technology problem but first and foremost a data problem. One such company is global pharmaceutical leader Allergan, who after careful analysis determined they needed to solve a revenue leakage challenge based on access to synthesized commercial relationship, not just a contract management challenge.
Complexity breeds billing inaccuracy and therefore, revenue leakage
When we began partnering with Allergan in 2017, they cited rapid growth and complexity of commercial relationships as catalysts for seeking an automated solution to enhance contract management capabilities and revenue control. That’s something we see all the time—the more complex and custom (non-standard) these large B2B relationships become, the more difficult it is to maintain accurate data as the relationship evolves and the more difficult to access and interpret the right data. This leads to revenue leakage in billing, ordering, compliance and negotiations.
One particularly common point in the customer lifecycle where this leakage occurs is in the billing stage. As my colleague and Pramata’s Chief Product Officer Justin Schweisberger recently wrote, “Some conscientious billing teams attempt to piece together critical pricing variables from dozens of negotiated contracts, amendments and order documents. But it’s usually a thankless and futile effort that takes forever to accomplish, only to have the information quickly expire.”
Our Billing Accuracy solution targets this extremely valuable revenue moment, where Billing Teams are often spinning their wheels trying to cobble together critical commercial terms and coming up way short on completeness and their ability to create a bill that accurately reflects the current state of the commercial relationship with that customer.
A clean, complete commercial relationship system of record
By using Pramata, Allergan is relieved of this massive and unrewarding time-suck. But more importantly, the commercial relationship information they access now is always up-to-date, complete, accurate and actionable by the teams who need it most. As a result, Allergan sees significant value in dramatically improved billing accuracy, better managed customer pricing variables, and better assurance of account alignment.
Michael Richardson, Executive Director at Allergan, summed up a key Pramata benefit like this: “Since we've gone live with Pramata, our team is seeing huge strides in our contract reporting capabilities. Pramata enables us to retrieve specific information within customer contracts in minutes or a few hours, compared to the many hours it took before implementation.”
Imagine the impact for billing team members tasked with the monthly or quarterly responsibility of capturing as much revenue as is available within a relationship and knowing without question you’ve done just that.
For me personally, it’s exciting to see Allergan using Pramata to bring their complex relationships into a clearer, more actionable view for their finance teams and to witness real results so quickly. I look forward to being a part of their continued success.
Read more about Allergan’s success in our recent press release.