Recurring Revenue: It’s Not All About Payment

San Francisco, Calif.Feb. 18, 2014Aria Systems released a new e-paper entitled “Why Recurring Revenue Success Is All About Customer Relationships,” which outlines how businesses can develop a recurring revenue strategy that drives repeated sales and rapidly expands their markets by looking at the customer experience in a new way.

The advent of the recurring revenue sales model for 21st Century business success is fact, not fad. And the latest e-paper from Aria Systems underscores the fact that this new business model is revolutionizing markets and creating new opportunities for businesses large and small. The model is one that puts the customer front and center for all ongoing sales and interactions.

The publication is the latest in a series published by Aria to better inform business management about how to select the right recurring revenue management solutions for financial success in today’s digital economy.

“When deploying a recurring revenue solution, management typically focuses on billing and payments. However, our latest e-paper explains how management must also develop a new mindset about the customer to take full advantage of the opportunities for increased sales and profits using this model,” said Jon Gettinger, senior vice president for marketing at Aria Systems. “Satisfying the customer over the life of the relationship is the key principle for success in recurring revenue. Thus, managing each and every customer’s experience should be the most important consideration.”

The e-paper notes that industries that pioneered the use of the recurring revenue model, such as retail and travel, are adept at driving repeat sales and rapidly expanding their markets. “Using loyalty programs, as well as targeted marketing and discounts, these industries mastered the art of enticing customers to come back and buy again,” the paper notes.

Creating personal connections with the customer is required to realize the full value of the recurring revenue model, according to Gettinger.

“The takeaway from this paper is that the interaction with the customer should no longer be looked at as only a series of transactions. The revenue can flow for a long period of time, years if the relationship is managed correctly,” added Gettinger. “You sell once, but enjoy the revenues and profits from the relationship over a long period of time. We call this concept ‘Repetitive Prospect-to-Cash,’ but with a new mindset to go beyond conducting transactions over and over again.”

The paper outlines the steps to take in setting up a recurring revenue model, which doesn’t have to be a daunting task. It guides the reader through the process of choosing a vendor, and notes the value of selecting one well-versed in software as a service (SaaS) and cloud technology over traditional on-premise systems that are not designed for recurring revenue management. The paper concludes by noting that the best solution is one that provides a balance of function, flexibility, reliability, and deployment options required to meet and maintain customer satisfaction.

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