As someone who works in the renewals business, which is often overlooked as sales people focus on capturing new sales, something dawned on me; working women are sometimes treated much like recurring revenue – they’re highly valuable yet often not on par with their male colleagues in the corporate world.

Consider this:

  • Just as women make up 47% of the workforce and are paid 77% of what men make, recurring revenue contributes 50% of most tech companies’ profits and receives only a fraction of the investment that new logo sales get.
  • The gaps get bigger over time – Over a 40-year working career, the average woman loses $431,000 as the result of the wage gap.   Likewise, $10 million in lost recurring revenue compounds to cost your company $150 million five years later.

Companies that get the most of their recurring revenue outperform their peers in a big way – they grow their revenue 20% faster and their profit margins are 25% higher.  Learn more about their best practices in the eBook “Recurring Revenue: 5 Secrets to Fly High and Fuel Growth.”

How can your company turn this under-valued asset into a growth engine that breaks your revenue glass ceiling?

One big key: you have to start giving recurring revenue the same resource and attention that you spend on new logos.  Here are a couple of ways that leading companies are doing just that:

Use big data to change the conversation with sales.
Symantec used extensive data analysis to discover that customers who have a service plan pull through twice the new product revenue that companies without service plans generate.  This completely changed the conversation with sales and Symantec added services into the premium compensation bucket for their new logo sales teams.  This grew the company’s highly profitable service business from $30M to $165M in just three years.

Get the channel working for you.
At BMC, renewals were being put on the back burner by channel partners as they focused on big new deals. By building a channel compensation plan with accelerators and rebates for one-time renewals, the BMC recurring revenue team worked with channel partner executives to ensure that the channel was being compensated in a way that drove BMC’s overall revenue objectives.

By focusing on profitable recurring revenue, you won’t break the glass ceiling; you’ll shatter it.

How can you turn undervalued assets into indispensable parts of your business?  As products move to cloud-based and subscription models, how do you need to change your renewal and retention strategy?