Contract Attach and Renewal Rates – The Keys to Increasing Revenue
The financial contribution of support and maintenance revenue continues to grow in significance. With support and maintenance margin performance in the 70% to 80% percent range and revenues accounting...
View ArticleThe Value of Strategic Accounts
It’s the same formula that characterizes product sales: The majority of technical support and service revenues comes from a minority of customers — highly profitable customers. On average two-thirds of...
View ArticleStemming Maintenance Revenue Attrition
Over time, the implication of achieving only industry-average renewal rates will result in significant customer attrition and lost revenue. Industry-average renewal rates show that nearly one-fifth of...
View ArticleHow Customer Preconceptions Affect Maintenance Contract Sales
A lack of perceived value doesn’t necessarily mean customers won’t purchase a support contract, but your sales team better be ready to offer evidence to justify an investment All the time, effort and...
View ArticleStemming Maintenance Contact Attrition
When achieving industry-average renewal performance the percent of customers under contract erodes to 46% of the original relationships at the end of a five-year period. Here are suggestions for moving...
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