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
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're focused on how to get some of the attributes that you would expect from an Amazon, Azure, Google, and doing that on-prem. We believe today that you can actually get those types of things done with certain architectures available in the market today," explained Steve Conner, VP of Sales at Cloudistics, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"The reason Tier 1 companies are coming to us is we're able to narrow the gap where custom applications need to be built. They provide a lot of services, like IBM has Watson, and they provide a lot of hardware but how do you bring it all together? Bringing it all together they have to build custom applications and that's the niche that we are able to help them with," explained Peter Jung, Product Leader at Pulzze Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2,...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...