Insightful Resources for Service Providers - Rev.io

Boost Customer Retention with Modern Billing Solutions

Written by Rev.io | Oct 8, 2020 4:00:00 AM

Beyond the ability to design and launch a distinguished project and grow business through new sales consistently, the most successful companies focus on a core element that many organizations still overlook – customer retention. 

What is customer retention and how will an advanced billing solution help you keep your customers on board as long-term partners? We address these questions and more with a detailed look at effective revenue retention strategies that support profitable, sustainable growth.   

WHAT IS CUSTOMER RETENTION? 

NGDATA defines customer retention as the “activities and actions companies and organizations take to reduce the number of customer defections.” Simply put, customer retention serves as a strategic framework to keep your customer base satisfied with your products, solutions, and devotion to exceptional customer service. If those impressions become the standard expectation based on customers’ experiences working with your team, then you can expect these partnerships to prosper well into the future and your recurring revenue to remain strong with advanced billing.

The specific customer retention strategy you deploy will shape how employees in your organization conduct themselves, how your team collaborates with customers, and whether your business ultimately succeeds in meeting lofty expectations. 

WHY DOES IT MATTER? 

While it may feel natural to focus more on new revenue generation opportunities and promising sales leads, customer retention should always serve as the foundation for your business’s sustained growth and profitability. 

SmallBiz Genius’ Consumer Loyalty Statistics notes that 65% of a company’s business comes from existing customers. On the profit increase side, SmallBiz Genius found that an increase in customer retention by just 5% can boost a business’s profits between 25% and 95%. 

HOW DOES A MODERN BILLING SYSTEM REDUCE CHURN? 

Addressing a lackluster billing situation is a good first step in keeping your customers happy, reducing account churn (i.e. the loss of customers that drive recurring revenue), and reaching ambitious new revenue heights. With billing inconsistencies come billing issues – including missed recurring monthly payments and increased revenue leakage – that can motivate your customers to consider alternative software for modern billing.

By upgrading from a billing system riddled with errors to an advanced billing solution like Rev.io’s platform, you can impress with consistency and demonstrate to your customers that their success as a strategic partner remains your top priority. Rev.io’s configurable software delivers the industry’s most complete quote-to-cash financial processing experience, empowering customers to oversee subscription billing, usage-based billing, and taxation all within one streamlined instance. 

To learn more about how Rev.io helps telecom, MSP, and IoT businesses achieve efficient revenue growth and keep customer retention high, schedule a demo of our platform or contact us today.