29 Aug Higher close rates and bigger deals with the right technology
We hear a lot about how technology can help us in many facets of business, specifically how it can reduce complexity and streamline operations. But can it really grow revenue? Many companies wonder that. Amy Cook, CMO at Simplus, sat down with Pete Shelton, Vice President of Sales at Simplus, to talk about how Simplus has helped companies grow their revenue streams and achieve results such as 40% higher close rate and 100% increase in deal size through technology.
“So there are two main trends that we’re seeing. And they are both in the business to business and business to consumer segments. Every company in the world right now is looking for ways to find recurring revenue streams,” said Shelton. “Most commonly in high tech. Every high tech company that sells software is putting that in a recurring revenue model. There are also some examples that have been around for a while that we don’t even really realize are subscription models, such as subscription for music and auto leasing.”
If you think about recurring revenue, it is the easiest way to grow your business. It’s much easier to grow annually that way. When you already have a book of business or recurring revenue model, you’re building on that versus having to start over every year. It makes predicting revenue so much easier, and then customer retention rates are higher. “It’s so much easier for a customer to stay once they’re on a subscription,” said Shelton.
“Another trend is bundling. Look at all the things that we buy as consumers. Technology like Microsoft Office is a bundle of different products together. Fast food kind of invented that with combo meals. Satellite TV is another example. It’s a whole bundle of all kinds of different stations. We may or may not care about those stations, but they’re all there. When we go out to buy travel, it is so easy on travel sites to bundle your hotel, flight, and a rental car.” Bundle payments are so common and so valuable to the customer, but also very valuable to the business.
So, how are companies utilizing technology to grow revenue? There’s a technology in the marketplace that’s gaining momentum very quickly because it helps both manage recurring revenue as well as enable a sales team to sell their solutions in a bundle. “So, one way that Simplus is helping our customers increase revenue with technology is with Salesforce CPQ. Salesforce CPQ is a technology that handles recurring revenue models and streamlines the sales process in multiple ways. Even more importantly, Salesforce CPQ gives your business control of how your products are sold, which is a powerful lever to increase revenue.”
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