Unlock lost topline opportunities.
Are you capturing all the revenue you should be from your existing client base? Missed renewals or poor renewal planning, as well as inability to respond quickly to changing events to maintain customer satisfaction, result in lost clients. On top of that, inaccessible payment terms mean that most companies aren’t charging customers accurately. Structured contract data can help you keep your existing customers, identify growth opportunities, and stem leakage.
Improve customer retention.
Customer retention is critical to the health of your business – so much so that by Bain estimates, a 5% increase in customer retention can yield up to 25% in increased profits. Taking a portfolio view of your customer contracts is a pivotal way to unlock that value. You can view at-a-glance the upcoming contract expirations, divided by renewal type, to better plan your renewal strategies. Contract data also helps you maintain high levels of service for your customers in disruptive times, allowing you to look across all your customer arrangements and understand where you can manage supply chain disruptions by proactively identifying opportunities to subcontract or reassign work to match your supply, or renegotiate.
Plug up revenue leakage.
McKinsey analysis estimates that on average, 9% of revenue leaks out from an organization’s top line. Much of that leakage derives from organizations not receiving the correct payment for their services; through scope creep, incorrect or outdated pricing, late payment, or excessive rebates. At the heart of each of these problems is contract data:
- ambiguity regarding the scope of activities.
- contracts renewing at old prices or without resetting volume discounts.
- minimum purchase commitments not enforced; payment terms not enforced.
- unintended discounts caused by unforeseen most favored nation clauses.
Taking a portfolio view of your customer agreements enables you to take immediate action to ensure you are following and enforcing your policies. The best part? Almost all found revenue has no associated cost, so it goes straight to your bottom line.
Find sales opportunities across your customer contracts.
Contract data can also illuminate opportunities for cross-selling and upselling to your existing client base. Your contracts give you a clear insight into which clients have bought which products. By assessing the products you’ve already sold into specific clients, you can develop clear strategies regarding complementary or additional products that may be relevant. You can also identify untapped geographies, or related entities that may benefit from your products, bundling products together to expand your reach within a client while providing volume benefits to your customers.