Growing or Maintaining Renewals
Business Structure Support renewal business
Very few variables
Limited flexibility in working with customers
Customers are aware of the limits
Fixed Pricing
Support Team
We manage a set of customers
Regional coverage in India (geography)
We work in any area, not fixed to an industry
His Team does $65M in revenue
Amit has 10 years experience in this area
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Success Factors
Hunting new Customer is not what works for us
Defined contracts
Defined customers
100% of base = a good job
Retaining Customers
Retaining Conrtacts
Timing - must happen before contracts expire
Prevent Cancelations
Leaving on the table
Customer wants to renew but not in our time frame (Exit Past Due)
Challenges
Pricing - though globally known
Increase on a contract due to inflation
Customer reduces products from the order and wants to reduce price in proportion
Internally replacing one product over another (selling a new product to replace an existing product that is already working)
Competition - selling similar services that are not authorized
Price is associated to the contracts. Inflation is the only change (4%) this year
Customers feel they need exemption
Amit explains the cost of inflation in detail (time zones, exchange rates, not passing the full cost)
How do you communicate improvements to customers?
If you buy a product 22% of dollar is going to be service
Sometimes Managers waive the inflation fee
We have premium level service: we don't fluctuate
We show customers how they are consuming our services
Products & Services
Customers get all new products and services when new versions come out (68% of support costs)
Customers can raise unlimited costs in resolving these issues
Upgrades: Nudge customers to move to the new upgrades at a higher costs
How often they have used our knowledge base to prevent problems
Sessions on how to work with customers
Every year, every customer will insist on it
Is it general ask? is it a negotiation
Is it a genuine need?
Have the customers faced a lot to issues
Customer pays ie $100 and each product costs $10
Though customer wants to remove 5 of them and pay $50
Customer got volume discounts to get the initial price
Products get removed and the price doesn't change due to our model. Customers get dissapointed
Indirect Taxes - shifted from Taxes charge at the point of product sale. After GST implementation only 3 products remained in that system. The load on the system dropped 90% overnight. customers don't understand the impact on I.T and believe support costs should drop by 90% as well.
Customers don't pay on time
Amit has an example of how this was resolved. How widely is this known?