A small percent of any company's customers is typically responsible for the majority of its revenues. Combine this concept with the knowledge that many companies are leaving large quantities of renewal opportunities unprocessed and you begin to get a picture of the immense potential of maximizing renewals management.
If you are considering implementing a renewals platform, one of the first questions is often, "What is the expected Return On Investment?" So I thought we should address the question in a blog post.
First off, it's impossible to provide an ROI number for every customer. It will differ greatly from one company to the next. But the statistic I can provide is that most iasset.com customers achieve ROI within three months, and all customers within 6 months, from their go-live date.
Increased Efficiencies by Streamlining Renewal Management
The staff hours required to review and approve a traditional renewal quote in the channel are excessive, especially given the tight margins they are working on. Beginning with manually searching price books or a vendor portal for current pricing and product data, a rep manually makes price adjustments to 132 line items, writes up a quote and sends it to the customer. If the customer wants to make a few changes, the rep makes the adjustments to the quote and emails it to the distributor for review. The distributor makes an adjustment and sends it up to the vendor. The vendor reviews the quote, approves it, returns it to the distributor who approves it and sends it back down to the reseller. The reseller shares the quote with the customer and hopes that they accept the revisions.
This process can take weeks. In addition to the high cost of staff hours, often the long delay in quote review and approval will result in the loss of a customer who got tired of waiting.
A renewals management platform streamlines channel communications and quoting dramatically. It allows renewal reps to process a quote and revisions in seconds based on established business rules that govern the types of changes that can be made without review. It establishes a central location for all customer data, product and pricing information so that all channel members can access the same data at any time.
When renewal teams spend less time entering data into spreadsheets and emailing with channel partners and customers, they have more time to process renewals. Automation can quickly and easily:
- Identify contracts that are coming up for renewal
- Distribute standard notifications to customers
- Update quotes with current pricing and product data
- Share sales data with channel partners
- Approve or reject quotes based on established business rules
Less time spent on laborious manual processes allows renewals teams to address a much higher percent of opportunities with more accurate data and a more efficient process that increases customer satisfaction—resulting in increased revenues.
To achieve an optimal return on investment from implementing a renewals platform, it is helpful to come to the implementation with a full understanding of your renewals issues and challenges. Clearly defined goals for improving your renewals management will allow you to identify your own ROI. For additional help preparing for a successful renewals management platform implementation, download our free eBook, "Implementing a Renewals Platform: What You Need to Know."