Stronger data and relationship management could improve revenues
A study from a recurring revenue management company has suggested that bad business management and mishandling of customers could be costing firms as much as $1.4 billion.
Over two years, ServiceSource looked at more than $1.4 billion in lost revenues from over 50 software, hardware, industrial systems and healthcare companies. Analyst house Gartner estimated the total lost revenues figure was at $30 billion.
In EMEA, a lack of loyalty and bad data is leading to the region suffering more than other markets, according to the survey. It claims 54 percent of customer non-renewals are down to an inability to connect with their customers.
This is most present, the survey says, in the Euro crisis zone, and non-responsive customers are cited as the top cause for customer loss, leading to 45 percent of non renewals. By contrast, businesses in Asia are outperforming EMEA by 14 percent, and this lead, ServiceSource says, means customers are four times more likely to upgrade through a current vendor than going to the competition. But the region does lose roughly 24 percent of business through failing to communicate the value of a service, whereas EMEA loses just 14 percent in that area.
According to managing director for EMEA at ServiceSource, Martin Moran, if companies in Europe focused on strong data and relationship management they could outperform competitive regions in almost every area.
“The real worry here is the lack of focus on identifying why customers leave,” Moran said. “Whether through bad data, competitive pressures or lack of customer satisfaction, access to real time, analytical data is the key to unlocking these streams, worth billions”.