When sales and billing are misinformed,
revenue is lost
Every quarter brings many revenue events across your existing commercial relationship portfolio.
Renewals, cross-sell or upsell negotiations, and billing activities should be the perfect time to revisit undesirable contract terms, evaluate pricing increases or apply cost pass-throughs that could hugely improve long-term deal economics and immediately grow customer margins and revenue.
Even after deploying the latest Q2C tools, most companies are leaking revenue to the tune of 2-4% per year. That’s the bad news. The good news is, this revenue gap can be filled by adding a simple turnkey solution to your quote-to-cash toolkit.
Unfortunately, your sales, finance and services teams are unaware of these critical performance indicators and revenue levers because they simply can’t see the complete, current state of their commercial relationships. Zero visibility into lucrative white space, pricing uplifts, or other valuable renegotiation leverage. The result?
Poor renegotiations and sub-par renewal revenue
Inability to increase or maximize pricing
Over or under-servicing your customers
Unmet customer purchase commitments or other obligations
Failure to identify and act on expansion (upsell) opportunities
How do you know you’re at risk?
the Most common ways Companies Leak Revenue Across The Customer Lifecycle
Relationship complexity breeds distraction and revenue leakage
Your sales and finance teams’ top priorities are growing revenue and avoiding customer churn, yet they spend countless hours trying to piece together a current view of the customer relationship. Products in use, pricing terms, discounts, expiration dates and commitments are spread across dozens or maybe hundreds of MSAs, amendments, order forms and more.
Their efforts not only waste active selling time, but what information is gathered becomes quickly outdated. It’s a complexity problem, and try as they may, large B2B companies haven’t managed to solve it.
Video: Why and Where Revenue Leakage Happens
Pramata and SiriusDecisions discuss why revenue leakage costs companies millions every quarter and the real challenge: knowing why and where it’s happening.
The more you know about revenue leakage,
the faster you can stop it. Read on!