This is a continuation of our blog series on recurring revenue management for OEMs. Check out the first post, Why Effective Recurring Revenue Management is Essential for OEMs, for more on why an effective recurring revenue management program is essential for your OEM’s growth.
Recurring revenue is essential to the life force of an equipment manufacturer (OEM). It can be a more predictable and dependable way to maintain the company’s bottom line than finding new sources of revenue, as it involves maintaining relationships with customers that you have already put the work into engaging.
But that doesn’t mean it doesn’t take work. In practice, recurring revenue – and renewals in particular – require effective management in order to remain impactful. This is especially true for OEMs, which work with a long channel – distributors, resellers, customers – to keep their renewals moving down the pipeline.
If you want your OEM’s renewal management program to be effective in enhancing the bottom line, make sure you are focusing on both numbers and relationship-building. Without one or the other, you could end up overlooking renewals and upsell opportunities, and ultimately, could miss out on valuable revenue.
Check out these 5 tips for enhancing your renewal management program:
1. Pay attention to the numbers.
- If your renewals cycles are slow, churn rates are high, and revenue numbers are not where you want them to be, it may be time to revamp your renewals program.
2. Develop the right enablement program to fit your renewals managers’ needs.
- This could range from technical knowledge around products and tools, to soft skills trainings centered on building and maintaining positive relationships; a crucial skill for maintaining healthy channels and keeping renewals cycles moving.
3. Focus on quality.
- Invest in the resources to prioritize delivery excellence. Quality relationships lead to happy stakeholders, more buy-in, enhanced engagement, and ultimately, faster renewals cycles and increased revenue.
4. Offer discounts to your more engaged distributors and partners.
- This type of positive reinforcement will provide even more incentive for your most effective and engaged distributors and partners to continue to be engaged and bring their renewals to a quick and efficient close.
5. Consider outsourcing your renewals function.
- Companies specialized in renewal management focus on your renewals so that you can focus on core business and higher-priority goals. These companies provide the specialized teams, tools, and processes to help you find those parts of your renewal business that are being left on the table and to ensure that you aren’t missing out on any revenue opportunities.
Our next blog in this series, Assess Your Current Recurring Revenue Management Program for Effectiveness by Addressing These 6 Questions, focuses on how to assess your recurring revenue management program to ensure it is working for you – and not the other way around.
Contact RAY ALLEN today to learn how your company can benefit from RAI’s Recurring Revenue Management (RRM) solution. (RAI’s RRM solution is designed to meet the needs of OEMs, Service Providers, and Value-Added Resellers).