Creating a frictionless renewal landscape is vital to ensuring recurring revenue growth. Here’s a look at the top 3 renewal friction points to avoid and the top 3 capabilities you can adopt to set your renewals in motion.

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How to Make Your Renewals Frictionless
Service Revenue Generation

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Creating a frictionless renewal landscape is
vital to ensuring recurring revenue growth.
Here’s a look at the top 3 renewal friction
points to avoid and the top 3 capabilities you
can adopt to set your renewals in motion.

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Key Research Trend #1
of benchmarked companies execute an
effective AutoRenew program.
23%
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017

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Friction Point #1: Never Ending Contract Negotiations
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
Why This Matters…
Over 75% of companies leave themselves
open to term and price negotiations with
their customers every year.

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Key Research Trend #2
of customer payments utilize purchase
orders.
94%
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017

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Friction Point #2: Inefficient Payments
Why This Matters…
Purchase orders are slow and
expensive for your company and
your customers.
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017

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Key Research Trend #3
Source: TSIA Service Revenue Generation Benchmark Studies, Q1 2017
16% 26%
On-premise Cloud
of SMB customers are not contacted prior to
contract expiration.

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Friction Point #3: Renewal Coverage Gaps
Source: TSIA Service Revenue Generation On-Premise Benchmark Study, Q1 2017
Why This Matters…
Renewal coverage models are
sub-optimized, resulting in
revenue erosion and/or customer
attrition.

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To take the friction out of your renewal
process and reduce customer attrition,
TSIA research provides prescriptive advice
on adopting 3 frictionless renewal capabilities.

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Capability #1: Implement Standard, Perpetual Terms
Source: TSIA Service Revenue Generation Benchmark Study, Q1 2017; N = 66
 Transition customers to perpetual terms to achieve higher
renewal rates and lower customer attrition
 Automate quote generation
For a $300M recurring revenue business:
• 1.2 pts of renewal rate improvement is $3.6M
• 5 pts pf renewal rate improvement is $15M
Did you know?

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Capability #2: Efficient Customer Payment Methodologies
Source: TSIA Service Revenue Generation Benchmark Study, Q1 2017; N = 66
 Offer purchasing card payment options (B2B credit cards)
 Allow customers to renew online
Purchasing card usage is growing exponentially, accounting
for:
• $245B of transactions in North America
• 12% growth for B2B purchasing card transactions
Did you know?

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Capability #3: Optimize Coverage Models For Renew & Adopt
Source: TSIA Service Revenue Generation Benchmark Study, Q1 2017; N = 66
 Increase customer-facing resources
 Pivot to customer adoption & business outcomes
• Reducing investment in back office functions can free up
investment for customer-facing activities
• Creating value is your best shot at making the renewal a
non-event
Did you know?

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Set a goal to decrease
your customer attrition rate
by 2 to 5 points…
…let TSIA’s Service Revenue
Generation show you how.
www.tsia.com
© Copyright 2016 Technology Services Industry Association
Source: 2016 TSIA Service Revenue Generation Benchmark Study

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Find out what other trends
are impacting your annual
recurring revenues in 2017.
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