The Path to Growth Through Revenue Lifecycle Maturity

The Path to Growth THROUGH REVENUE LIFECYCLE MATURITY The key to finding higher recurring revenue and better customer retention is engaging the right way with your customers from beginning to end -- and beyond. The Revenue Lifecycle helps businesses to retain and grow revenue from existing customers as they develop higher maturity. 曾 置 Opportunistic Emerging Disciplined Optimized Strategic (Lower Renewal Rates) (Higher Renewal Rates) ServiceSource conducted a survey on the relative maturity levels of global B2B companies in their efforts to address the Revenue Lifecycle. Survey Not Segmented by Business Unit or Customer Segment 25 GLOBAL B2B COMPANIES Including 10 of the Top 15 Global Software Companies Representing $130 blllon of global software revenue Including $10 billion of global Saas revenue HOW MATURE ARE THESE COMPANIES? Level 1 Level 2 Level 3 Level 4 Level 5 OPPORTUNISTIC EMERGING DISCIPLINED OPTIMIZED STRATEGIC 22 72 25 50 75 100 Lagging Company Average Leading Company Revenue Lifecycle Maturity is positively correlated with Renewal Rate. 7.9 POINT GAIN in customer renewal 98% rate for every step 90% 82% up in maturity level 74% 67% 31 POINT DELTA in customer renewal rate between the most mature and least mature Opportunistic Emerging Disciplined Optimized Strategic companies The two strongest drivers for overall Revenue Lifecycle Maturity. *** DATA TECHNOLOGY ol THE 3 KEYS TO INCREASED REVENUE AND RETENTION 1. Look at the entire Revenue Lifecycle picture Lagging companies focused mostly on selling While leading companies addressed both selling activities: activities and Customer Success activities: • RENEWALS • ONBOARDING • UPSELL • ADOPTION 2. Go beyond people and processes Most companies only focus improvement efforts on: But to drive Revenue Maturity advancement, these must be enabled by: • PEOPLE • DATA • PROCESS • TECHNOLOGY • KPIS 3. Experiment, innovate and embrace change 100% of leading companles have Injected a culture These companies also leverage the world's most of Innovation Into thelr approach, allowing for rapid, up-to-date data management and analytics to drive iterative evolution. business improvements and decisions in real-time. You can develop an effective retention and growth strategy through the Revenue Lifecycle Model, regardless of the size of your customer base or experience managing recurring revenue. Service Source