In today’s competitive business world, the company with the most money in its pocket is generally considered the victor. While profits within a business are derived from several sources, recurring revenue streams are often considered among the most important, as they are more predictable as well as ongoing.
A new report by InformationWeek highlighted the importance of effectively gathering and using data to generate recurring revenue, as missing or incomplete information will hinder a firm’s ability to make ongoing sales and turn a profit. By leveraging big data analytics, however, decision-makers can eliminate some of these problems and create more holistic client profiles.
“We estimate that in two years’ worth of data that we’ve seen across 50 global companies, about $1.4 billion dollars in recurring revenue have been lost because of incomplete data, missing data, wrong asset information and things like that,” recurring revenue expert Ganesh Bell said, according to InformationWeek.
How big data contributes to recurring revenue streams
Data is the key to success, especially in today’s highly competitive private sector which requires companies to go head to head. By leveraging real-time analytic solutions, decision-makers can compare operations to rival firms and assess if they are doing all in their power to keep clients happy and coming back for more, the news source noted.
This is an important aspect of any recurring revenue stream, Bell asserted, as it allows executives to see how they are doing compared to another service provider in the same industry.
“Many companies with large installed bases of renewal customers struggle to maintain an accurate view of who buys their products and services month after month and [they] battle with complex spreadsheet-based systems,” according to analysts from research firm Gartner. “And they increasingly have to capitalize on every customer opportunity to meet and exceed their revenue targets. In such an environment, revenue from existing customer relationships represents a frequently undervalued asset.”
Since subscription offerings can be a major contributor to recurring revenue streams, decision-makers looking to generate more ongoing, predictable profit should consider leveraging a subscription management platform that provides analytics. In doing so, an organization will be able to quickly make important internal changes to keep customers satisfied and loyal to the company.