Recurring revenue in a digital world
"By 2020, all new [software] Participants and 80% of historical providers will offer subscription-based models "- Gartner
We are seeing a business trend via digital channels and associated with a subscription-type activity. We've seen it in the world of consumerism, where subscription-based e-commerce has grown more than 100% per year over the past five years, and in technology services, where all new entrants into software will be based on the SaaS mode by 2020. has clear implications on how activity planning and accounts is performed as users now have fewer barriers to entry and more choice, which leads to a decrease in customer loyalty. This means that customers, or more precisely users, expect to "try before you buy" and make additional investments over time compared to a major purchase (that is, ie in SaaS mode or on site).
In this world, development and extension strategies are common. Suppliers therefore rely more and more on the revenue generated after the initial transaction and on the expansion of the organic pipeline to increase their turnover. Gartner's research shows that 80% of a company's future revenue will come from 20% of existing customers. This clearly highlights the need for organizations to have a strategic account management plan to increase customer loyalty and maximize growth potential. Unfortunately, sales organizations face major challenges because they do not have the right technology to develop their organizational capabilities.
Account Manager | Challenges as strategic revenue generators
"Only 28% of sales managers say that account management channels regularly meet their cross-selling and account growth objectives" – Gartner
At InsideSales.com, we believe account managers need the industry's best tools to maximize their growth potential. New offers and customer acquisition are not enough to meet revenue goals. Today, account managers are facing a series of challenges to unlock the growth of their existing account base. "
Productive, efficient and structured account management
Our vision for the future of Account Management is an organization with technology that provides visibility into customer interactions, automates sales expansion games and maximizes customer lifetime value by discovering new growth opportunities. We believe that the account management team should clearly see the benefits of the tools it uses, such as:
- Smartly prioritized accounts
- Cadence and scope structured during future renewals
- Visibility in points of contact and customer activity
- Systematic and complete coverage of the account
- Increased upselling and cross selling opportunities
- Increased productivity and account coverage capacity
Our clients are able to generate more revenue from their existing accounts by knowing where and how to spend their time. Our unique platform uses IA optimized by collective intelligence[[[ help identify the right accounts to target and further assist representatives to engage those customers intelligently. Account managers also benefit from more relevant CRM data, based on the actual response rates of specific email addresses and phone numbers, which improves the overall productivity of the team. The combination of artificial intelligence through collective intelligence will allow Account Managers maximize their effectiveness and ultimately create a strategic income function.
[[[Collective The intelligence consists in using real results, inter-company, on our platform to guide our users via Machine Learning.
How do you think Account Management helps to generate recurring revenue? Share your thoughts in the comments section.
Up Next: The How and When of Sales Training for Sales Management
Suneal Rao is Director of Market Strategy at InsideSales.com. He is always happy to hear how business organizations are improving their effectiveness and would like to know what is working well (or not good) for you. Leave a comment below!