When 80% of your future profits come from 20% of your existing customers, it’s no surprise that businesses are focusing on increasing customer satisfaction and retention. An increasingly popular strategy to achieve this goal is the implementation of a recurring revenue model, which allows businesses to cultivate and nurture long-term customer relationships while growing revenue for the company. In fact, studies show that 47% of US businesses have already adopted or are considering adopting recurring revenue models.
There’s no denying the positive impact a combination of positive customer relationships and recurring revenue models makes. According to Forrester, “CEOs recognize [a] shift toward business models that reflect the value of the relationship with the customer,” as “one-time perpetual sales or fixed monthly subscriptions [shift] to consumption models that blend one-time, subscription, and usage-based billing” (Forrester, 2015).
However, adoption alone doesn’t automatically equate to success. In order to truly achieve the maximum benefit of a recurring revenue model, you must maximize the value of customers over time. This process, though it may sound simple, is much more complex than a delivering a satisfactory customer service experience. A well-oiled recurring revenue business knows that success begins and ends with the creation and execution of a well-planned strategy – from the initial decision to make a switch to tackling the challenges of the model to the final system implementation.
Making the move to recurring revenue is a critical business decision. Implementing a solution that enforces positive customer relationships and increases customer retention is a game-changer. Future-proof your business by getting ahead now.
For tips, tricks, and best practices for getting your recurring revenue project started, check out Aria’s From One-time to a Lifetime webinar series featuring Andrew Dailey, Managing Director and MGI Research, and Bob Harden, former Director of Billing Solutions at Experian and an expert in recurring revenue strategies and implementation.
Sign up for the webinar and learn how to convert your most precious assets into customers who will pay returns for a lifetime.