Welcome!

Blog Feed Post

Increase Recurring Revenue with Existing Customer Accounts

Did you know that 80% of current revenue comes from 20% of existing customers? This makes customer retention an integral part of recurring revenue success. So how can you maintain a positive relationship with current customers while simultaneously maximizing the revenue you can get from each one?

As the director of customer support, I’m in a unique position to know the ins and outs of a customer account’s lifetime (inside Aria’s ecosystem). With recurring revenue, an invoice is almost never just a simple invoice. There is a lot that goes on within an account every month –each customer event, or moment, providing an opportunity to win or lose revenue. The beauty of efficient recurring revenue management software is that it identifies these moments for you and then automatically sends appropriate notifications so your customer support team can focus on larger initiatives and building the customer relationship.

So what’s this all look like? Let’s look at a typical customer account over the course of a year and break it down to identify some of the various monetization moments.

Sally, a freelance film editor, needs to purchase editing software for a special project. The software has two versions, Standard and PRO, both of which are available via monthly or annual subscriptions and have recurring and usage-based charges. On the surface, it may seem that there are three simple steps: registration/activation, monthly/annual invoice, and deactivation. But in reality, there are various stages and scenarios the account can go through that should all be managed.

Back to our example: On March 8, Sally visits the website or contacts Customer Care to select a plan and create an account. Aria’s Active Orchestration triggers a welcome email with a link to download the software and activate the account. On March 10, Sally then activates her account which triggers a series of events, including creating an invoice for recurring charges, processing and collecting the payment, and generating a statement. All of this happens in the first few days and is vital to establishing a smooth relationship between customer and vendor.

Aria’s technology then takes note that Sally’s credit card expires on April 30th, and sends a credit card expiration notice on April 1st. On the 10th, Sally receives a bill and pays the monthly recurring charges along with usage from the previous month (March 10 – April 9). On April 15th, Aria sends another credit card expiration notice as the expiration date is just two weeks away and the payment information has not yet been updated. This second notice reminds Sally to update her information to continue service uninterrupted.

Oops! When Sally is billed on May 10th, the collection fails because she forgot to update her credit card payment information. Aria’s technology automatically generates a statement and sends her a dunning email. The next day Sally updates her credit card information (via calling customer care or through self-service on the web). Her account status is then reinstated as “active” and her service continues uninterrupted.

After Sally is billed on June 10th, she gets the news that the project is put on hold so she calls customer care and explains that she does not need the services for the upcoming months. No problem. Aria’s system will refund and reverse the recurring charges for the month, change her account status to “inactive”, and queue reactivation with an added welcome back message for Sally’s next statement upon return.

On September 1st, Sally informs customer care that her project is back on. This triggers Aria to change the status to active and create new charges along with a new billing period (starting the 1st rather than the 10th). Five days later, Sally decides to upgrade to the annual plan, which Aria prorates the invoice to begin billing September 5 – September 20th. Upgrading to annual from monthly triggers a handful of behind the scenes changes: recurring charge timeline is now yearly, a prorated credit is calculated for the previous monthly charge, monthly statements now only include usage information, Sally adds a new credit card, etc. Throughout her annual plan, Sally can choose to include one-time add-ons, like a training package, that can be charged on the next statement or collected right away.

In Sally’s case that there is a lot more to the lifecycle of a customer account than simple activation, monthly charges, and deactivation. It’s important to remember that we are dealing with people, not just processes. People forget things, they change their minds, projects are put on hold… As John Lennon said, “Life is what happens while you’re busy making other plans.”

When efficient recurring revenue management software automatically handles these customer moments (servicing, cross sells, expiration notices, dunning management, proration, etc.), your customer care team can focus on ensuring that Sally is always satisfied with her experience. The more satisfied Sally is, the more likely she is to continue her relationship with your company, guaranteeing recurring revenue for years, to come.

 

141219_ARIA_Mini_3

Meghan McGuire

The post Increase Recurring Revenue with Existing Customer Accounts appeared first on Recurring Revenue Blog | Aria Systems.

Read the original blog entry...

More Stories By Aria Blog

The Aria blog is the place for news, commentary and discussion on monetization, agile billing and IoT. We cover a variety of topics including forces of market disruption, the Monetization of IoT, billing best practices, trending news and what monetization will look like in the future. Our hope is that you’ll become better informed, be entertained and in turn share your thinking, ideas and comments.

Latest Stories
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effi...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that CHEETAH Training & Innovation will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CHEETAH Training & Innovation is a cloud consulting and IT training firm specializing in improving clients cloud strategies and infrastructures for medium to large companies.
"Tintri focuses on the Ops side of the DevOps, which basically is pushing more and more of the accessibility of the infrastructure to the developers and trying to get behind the scenes," explained Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that TMC has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo and Big Data at Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Global buyers rely on TMC’s content-driven marketplaces to make purchase decisions and navigate markets. Learn how we can help you reach your marketing goals.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organi...