Find New Revenue with Existing Customers
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The document discusses strategies for increasing recurring revenue from existing customers through improved data quality and analytics, highlighting Servicesource's expertise in this area since 1999. Key presentations from Johnson Controls emphasize the importance of data governance, identifying customer needs, and enhancing service contracts to boost sales and customer loyalty. Furthermore, it outlines the potential financial impact of better data management, including up to $30 billion in losses due to overlooked opportunities.
Find New Revenue with Existing Customers
- 1. Finding New Revenue From Existing Customers Presented by ServiceSource and Johnson Controls
- 2. Today’s Moderator Peter Hegyi Director, Industrial Systems ServiceSource ServiceSource Confidential Information
- 3. We are the market leader Focused exclusively on recurring revenue since 1999 Software Hardware LOCATIONS WORLDWIDE: Networking Healthcare & Life Science New Markets (XaaS and Industrials) $14.5B Recurring Revenue under management 47 seconds A renewal is closed 200+ Engagements worldwide 3 ServiceSource Confidential Information
- 4. Multiple paths to Recurring Revenue Complexity More complex Less complex Service Contracts Hybrid/Multi-Service Support or Preventative Maintenance Agreements Fixed Fee Revenue Model ServiceSource Confidential Information Pay to Use Usage or Subscription
- 5. Today’s presenters Joy Medved Sr. Director Data Quality & Governance, ServiceSource Buddy Saucier Vice President, HVAC Service and Security & Fire Operations, NA Johnson Controls Kelly Bremness Program Manager Johnson Controls Glenn Johnson Director, Industrial Systems ServiceSource ServiceSource Confidential Information
- 7. $30 Billion Lost Because Companies Simply Don’t See the Whole Picture. ServiceSource Confidential Information
- 8. Access Real-Time Data Comparative Analytics More Strategic Insights Identify Trends ServiceSource Confidential Information Proactively Correct Issues
- 9. Where is the product installed? What is the annual maintenance price? How many service calls on the product? 10110101001 10110101110 01101000110 10001001110 01101011010 00010110001 11001110101 00110001100 When did the warranty expire? Have there been parts replaced? Who is the correct point of customer contact? Is there an opportunity to upsell or x-sell? ServiceSource Confidential Information
- 10. CRM ERP OM Company Product Pfizer Inc A5000 SKU Support lvl A243210.1 Bronze 8x5 Entitlement System ServiceSource Confidential Information Exp. Date 12/31/13 Price Contact Phone # $10,500.00 Bob Greene 615.442.1212 Installed Base
- 11. Data Governance Map & Assemble Enhance Validate Data Quality ServiceSource Confidential Information Resolve
- 12. Data Quality & Governance Sales Revenue growth • Execution • Improve customer intimacy • Product and service innovation Customer Feedback ServiceSource Confidential Information
- 13. What if… You could intelligently generate the right service offers for the right customers… You could get real time market insight to inform new pricing and consumption models… You could improve customer loyalty and ensure they buy from you again… ServiceSource Confidential Information
- 14. Buddy Saucier Vice President, HVAC Service and Security & Fire Operations North America Kelly Bremness Program Manager, Enterprise Accounts, North America
- 15. Industry challenges Data quality and reliability Multiple sources of data KPIs & reporting Data governance Leveraging big data 15 Johnson Controls
- 16. Installed base data project DATA QUALITY GOVERNANCE • Consolidate multiple tools into one • Ongoing quality enforcement • Clean up of existing installed base data • Process improvement More sticky, linkage & attachment = MORE RECURRING REVENUE 16 Johnson Controls
- 17. Key benefits of installed base data improvement Increased upsell & cross-sell Targeted tech refresh campaigns Incremental recurring revenue and project pull through Business Insights 17 Johnson Controls Competitive displacements Database Improvement Improved customer satisfaction
- 18. Project Workstreams PHASE 1 • Sponsorship PHASE 2 PHASE 3 18 Johnson Controls • Sustain through governance • Identify a captain for each branch • Customer site creation monitoring • Engaging customers directly for asset verification • Set and track quantitative goals • Rollout plan for all 120 NA branches • Ongoing Executive audits
- 19. Expected results from growth initiatives for 2014 Controls and governance $12M Reporting and analysis Process improvements 19 Johnson Controls incremental services revenue
- 20. Glenn Johnson ServiceSource Director, Industrial Systems
- 21. Why does data matter? High Complexity Expired Business Pay Per Use Service Contracts Warranty Conversions Support Agreements Subscriptions Preventive Maintenance Agreements Low Traditional 21 ServiceSource Confidential Information Delivery Model Usage
- 22. How we can help Increase renewal rates and efficiency Optimize subscription revenue throughout the customer lifecycle Optional Maximize performance with our experts in customer success and renewal sales 15pt improvement in renewal rates* 20% increase in sales productivity** Best practice process & industry benchmarking *Based on internal studies, companies who worked with ServiceSource reduced churn by an average of 9 points **ServiceSource internal study comparing sales productivity before and after using Renew OnDemand showed an average increase of 20% 22 ServiceSource Confidential Information
- 23. Engagement model Service Performance Analysis (SPA) Solution Design Solution Deployment Gather needs and requirements Jointly design solution to meet your goals Rapid deployment • Sales & services strategy • Collaborative workshops • Training and On-boarding • Business case • Scope of engagement • Baseline performance vs. industry benchmarks • Solution design • Communication / change management plan • Policies, processes & practices • Metrics, reporting & systems 23 ServiceSource Confidential Information • Cloud application deployment plan • Build business case • Team alignment • Cloud app configuration, deployment & roll-out
- 24. Key Takeaways Understand the opportunity for improvement Leverage benchmarks to identify recurring revenue performance upside as well as qualitative process improvement opportunities. Develop a strategy specific to your needs Leverage knowledge from other industries to capitalize on revenue improvement opportunities. ServiceSource Confidential Information
- 25. Thank you! 25 ServiceSource Confidential Information