Digging for Marketing Gold: 6 Tips for Mining New Revenue Streams
The search for gold can be simplified if you know where to look. More often than not, it’s right under your nose. It's in your customer transaction data, point-of-sale systems and ordering platforms. It exists within the walls of your own organization and within your partners’ data repositories. It’s ripe with information that can lead to a successful warranty and maintenance contract initiative and millions of dollars in additional revenue. The best part is that these monetary rewards aren't only immediate and impressive, but they’re also ongoing. Service contracts provide a recurring revenue stream.
For most marketers, the challenge of warranty and maintenance programs lies in the time and labor required to find opportunities that can be turned into a revenue stream. For businesses that sell thousands of products each year, new cloud-based platforms and automation technologies that help companies dig deep into data and unlock the full potential of service sales are sorely needed. Why? Because they eliminate the hassle of mining and managing service contract opportunities attached to products sold while quickly improving profits and revenues at the same time.
How can you mine gold from your existing marketing data and play to win in 2012? Here are six tips to consider if you’re ready to reap the rewards of increased maintenance and service contract sales:
1. Know the issue. Maintenance and service contracts are attached to a high percentage of products sold. In the IT sector, experts say these contracts generate $60 billion a year in revenues in North America alone. Yet manufacturers fail to capitalize on up to 36 percent of the service revenue annuity stream in this market.
The problem is that service contract information is captured in different formats and systems — by manufacturers, distributors, channel partners and at various points in time. When contracts come up for sale or renewal, more often than not this information can’t be easily or accurately retrieved from internal systems, so the data and accompanying sales are lost.