News and Events
ServiceSource Helps NEC Corporation of America Optimize Service Revenue Performance and Increase Customer Satisfaction
Company Sees 35% Increase in Service Renewal Rates Over 6 Month Period
27 April 2010 (SAN FRANCISCO) - ServiceSourceŽ, the global leader in technology-based service revenue solutions for the high-tech, healthcare and life sciences industries, today announced it has driven a 35 percent increase in NEC Corporation of America’s renewal rates for Cisco Performance Metrics Central (PMC) over a six month period. Because of its engagement with ServiceSource, NEC also was able to avoid the costly investment of adding staff and developing new tools to accurately track and improve its service revenue.
NEC Corporation of America is a leading provider and integrator of advanced communications solutions for service carriers, Fortune 1000 companies and SMBs across multiple vertical industries and delivers one of the industry’s broadest portfolios of technology solutions and professional services. Prior to engaging with ServiceSource, NEC had a small team of support services specialists who were responsible for renewing Cisco SMARTnet service contracts. NEC found the lack of visibility into renewal performance to be challenging and engaging directly with customers to be extremely labor-intensive. The price was too high for investments in staff and new tools to address issues with data incompatibility and visibility. NEC turned to ServiceSource to improve its data’s performance and drive service renewal performance.
“Before our relationship with ServiceSource, we didn’t have sufficient resources to cover our whole Cisco customer base effectively, making it difficult to get renewals done on time, achieve Cisco’s PMC renewal rates, and most importantly, keep our customers happy,” said Paul Lopez, general manager of NEC corporate operations and planning.
ServiceSource provided NEC with an end-to-end service revenue solution that included a dedicated, incentive-based sales team powered by the ServiceSource suite of cloud computing applications and service revenue technology platform. And, the ServiceSource pay-for-performance revenue model was critical to NEC’s decision to partner with the company, as ServiceSource required no upfront investment from NEC.
“If we’d made the significant investment in additional service renewal staff, we wouldn’t have achieved the quality of results we’ve seen with ServiceSource,” said Lopez. “You can’t replicate the combination of their specialized technology platform, data services, and trained sales professionals – it’s those critical assets that have generated such stellar results for us.”
As a result of NEC’s partnership with ServiceSource, the company has seen additional success in:
- Improving visibility into PMC performance with accurate, real-time information to manage business proactively
- Achieving Cisco PMC rebates to improve profitability
- Increasing up-selling of NEC’s own branded Cisco shared support service, NEC Secure
- Increasing multi-year contracts
- Improving customer relationships and loyalty across the board
“Organizations like NEC are no longer willing to leave significant gross margin on the table because of reduced internal resources,” said Mike Smerklo, chairman and CEO of ServiceSource. “We are extremely proud of the results NEC has achieved over this brief period of time. Our success depends on our clients’ success, and we are confident that NEC will continue to achieve outstanding results as they fully leverage the ServiceSource technology platform and suite of cloud computing applications for service revenue performance to better manage their Cisco SMARTnet business.”
About ServiceSource
ServiceSource is the service revenue performance company. We partner with technology, healthcare, and life sciences companies to maximize maintenance, support, and subscription revenue while optimizing customer loyalty. We increase contract renewal rates for clients on average by 10–25 percentage points — and in some cases by up to 40 points. These dramatic results are achieved via a purpose-built service revenue solution, including a suite of cloud applications and managed services built on a proprietary technology platform, which combines the industry's most robust data management engine and a unique service revenue master, leveraging our deep knowledgebase of benchmarks and best practices. Our solution delivers proven results through a 100% pay-for-performance business model that enables a success–driven, shared–risk partnership. Headquartered in San Francisco, ServiceSource has $5 billion in service revenue under management.
For more information on ServiceSource, visit www.servicesource.com or call: 415.901.6030.
About NEC Corporation of America
Headquartered in Irving, Texas, NEC Corporation of America is a leading provider of innovative IT, network and communications products and solutions for service carriers, Fortune 1000 and SMB businesses across multiple vertical industries, including Healthcare, Government, Education and Hospitality. NEC Corporation of America delivers one of the industry's broadest portfolios of technology solutions and professional services, including unified communications, wireless, voice and data, managed services, server and storage infrastructure, optical network systems, microwave radio communications and biometric security. NEC Corporation of America is a wholly-owned subsidiary of NEC Corporation, a global technology leader with operations in 30 countries and more than $42 billion in revenues. For more information, please visit www.necam.com.
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Media Contact for ServiceSource:
Sabrina Cook
Horn Group for ServiceSource
415-905-4013
sabrina.cook@horngroup.com