According to research firm IDC, today’s businesses waste 80 percent of their customer data. And by failing to leverage existing insight that they already have, these organizations can experience a damaging disconnect with their customers, not only falling far short of their full potential in sales, but also in building brand loyalty.
When it comes to service renewals, for example, tapping into customer data is essential to drive success. But without properly leveraging that data, most manufacturers will feel the effects of revenue leakage, which means they’ll miss out on a huge ongoing revenue opportunity.
While all types of service renewals suffer from data revenue leakage, low-dollar service renewals take the hardest hit. Often ignored because businesses just don’t want to expend the time and resources to pursue them, these renewals also represent low-hanging fruit. However, today’s top manufacturers and distributors have recognized their value and they’ve put the power of smart data to work to uncover what were once lost opportunities and turn them into significant review.
Common Service Revenue Data Issues
What are the most common issues impacting the value of an organization’s installed base data? They include data that hasn’t been collected, data that’s not meaningful, data that’s trapped in an information silo or data that’s simply outdated. It’s doubtful you’ll meet and exceed your sales quota with low-dollar service renewals if these issues are creating roadblocks in your business. To hit the fast-track to success and cash in on these missed opportunities, try these four quick fixes for service revenue leakage:
- Improve Data and Aggregation Practices
To jumpstart a service revenue program, start by eliminating the information silos that prevent you from aggregating the customer data you need to fuel service renewals and upsell or cross-sell opportunities. Integrate important customer information that exists across your data sources including ERP, order processing, CRM and other platforms, and create a single system of record for complete visibility into the data and the opportunities that exist. With a single pane of glass approach to your data, you’ll also be better set up for high-impact, highly targeted sales automation.
- Cleanse and Enrich Data
Filling in essential service contract information that might be missing, such as current customer contact data, product and service serial numbers, and contract expiration dates, will make your data more accurate and comprehensive and, in turn, a more valuable resource for your service renewal campaigns.
- Uncover and Identify Upcoming Low-Dollar Renewals
Spend time uncovering and identifying upcoming low-dollar renewals and other opportunities that your sales team can take action on. Organize upcoming opportunities quarter by quarter or month by month, and present them in a convenient and centralized way such as a dashboard, portal or mobile app. By spending time organizing the data, you’ll not only be empowering your sales team to reach out to the right customers at the right time with the right offers, but you’ll also reduce the cost of sale.
- Use Automation
If you’re running a large operation, service renewals can number into the thousands each month. Make it easy on your sales team and impress your customers at the same time by using best practices such as automated email campaigns to send out renewal notices. Add in the option for customers to purchase the renewal with a single click and watch your sales take off.
It’s clear that organized and effective data management and enrichment is key to a successful service renewal program, which is why staying on top of existing and new incoming data should be your top priority. Once you’ve implemented these four quick fixes for service renewal leakage, there’s nothing that can hold your business back from reaping the financial rewards.