Increase in On-time Renewal Rates
covering 5 Global Sites and 22 Languages
Account Growth Between 2018 - 2020
Modern customer loyalty is positioned on extremes. On one hand, exceptional experiences, personalized touch points and meaningful connections build a community of powerful advocates, fierce in their support of your business. On the other, an increasingly competitive landscape mean that customers are hyperaware that they have options elsewhere.
For businesses seeking healthy and long-term growth, developing existing customer relationships is equally as important as forging new ones, if not more so. With a keen understanding of customers’ organizations, sales leaders can identify new opportunities for partnership, while ensuring the long-term renewals cycle that businesses rely on.
Fostering these relationships not only leads to greater goodwill, but it has a direct impact on the bottom line. But how can businesses prioritize relationships and deliver the data driven approach to a renewals strategy?
In 2009 when Red Hat software began its relationship with ServiceSource, its needs were relatively simple: it needed a partner to help manage and grow its revenue retention and renewals strategy. Given ServiceSource’s unique approach and industry-leading expertise, the relationship quickly blossomed, leading to renewals growth and a strong, transparent dialog. ServiceSource team members worked via Red Hat email address and collaborated internally on shared systems – The team worked as a single, cohesive unit. This dialog would be vital as Red Hat’s needs changed so ServiceSource could pivot and deliver the right value at the right time.
This included experimentation with different strategies and sales motions. In 2018, however, the Red Hat team realized its own operational limitations in certain motion areas, and found that a reset was needed to effectively chart a path forward. It needed to get back to basics, focusing on the rocksolid renewals foundation that ServiceSource had built from the start.
Under this new direction, ServiceSource and Red Hat partnered to expand its renewals strategy around the globe with a primary focus on Small to Medium Business (SMB) customers. They also used this new partnership as a catalyst to
uncover and capitalize on upsell and cross-sell opportunities. Using a predictive model and proactive renewal programs for direct and channel customers, ServiceSource delivered a detailed assessment and recommendation based on key renewals data and metrics. There was now realtime visibility into the key performance indicators of the revenue lifecycle of Red Hat customers.
The result was a 20% boost in renewal rates. Simultaneously, it provided the opportunity to better understand customer needs, and grow relationships. Ultimately, this led to a 15% overall account growth over a 2-year period.
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