When it comes to capturing customer lifetime value (LTV),
what you don’t know can absolutely hurt you.
Hundreds of people across your organization are making critical decisions without an understanding of your commercial relationships. That means millions in revenue may be lost—on inaccurate bills, missed price uplifts, weak sales offers, slow deal approvals and poorly executed renewals.
Without a Commercial Relationship Baseline, billing errors lead to widespread revenue leakage, and deal and renewal delays fail to optimize the full revenue potential of your installed base.
The Commercial Relationship Baseline: Critical for LTV, Impossible to Manage
The Commercial Relationship Baseline is the essential foundation in eliminating revenue leakage and driving revenue optimization. The Baseline is derived from the terms you have agreed to with your customer—the products they agreed to purchase, key renewal or termination dates, related and in-effect contractual pricing, special terms and conditions.
Today, this information is both trapped and scattered across highly negotiated and changing MSAs, amendments and order forms. The products listed don’t match your product naming conventions and there’s no account hierarchy to indicate current state. Every single day, your teams tasked with key billing and sales functions must track down the correct commercial relationship documentation, interpret inconsistent legal language and compare it with internal standards—all in an attempt to recreate the essential Baseline so they can accurately bill a customer or perform vital sales activities.
Solutions to Solve both sides of the LTV challenge
FOR REVENUE LEAKAGE
Eliminate any deviations from the baseline and stop
chronic under- and overbilling. Ensure every customer
bill reflects the contracted terms and pricing.
FOR REVENUE OPTIMIZATION
Maintain and improve the baseline, and grow revenue by applying the right terms at the right time. Identify prime white space, negotiate stronger renewals and accelerate profitable deals.
Pramata gives you the “impossible”
Only Pramata can create and maintain the Baseline related to each of your customers with ongoing precision. Our solutions are updated daily as new transactions, account changes and product changes take place, so your teams are making decisions based on what is true right now for each of your customer relationships.
With the Baseline you will always know for each customer:
This is how we do it
Pramata creates and maintains the Commercial Relationship Baseline with our unique purpose built AI-technology stack deployed by a managed services team of data scientists, commercial experts and attorneys.
It works like this:
Pramata’s solutions take in the entire history of customer relationships (MSAs, orders, contract amendments, SOWs and more), remove duplicates, split files, identify missing documents, and convert into an OCR format
Organize the changes, amendments and other actions in a logical hierarchy to determine the order of precedence, and extracts the most up-to-date information
Identify and normalize nomenclature and language inconsistencies across the commercial relationship documentation into a common interpretation and format.
Transform contractual information into a commercial baseline by mapping products to commercial terms, related entities and pricing.
Organize the information into a hierarchy of customers, entities, products and services owned, and product and service level pricing, operational, and legal terms.
The Baseline is then mapped to the actual transactions within your billing system to help you stop losing revenue to billing errors. Or mapped to your sales CRM to identify whitespace opportunities, accelerate deals and improve renewal strategies.