ServiceSource Finds Billions Of Dollars In Service Revenues
ServiceSource is in a sweet spot in that the move to cloud computing and sofware as a service drives a growing need for tools that help companies manage recurring service revenues such as maintenance contracts.
Ganesh Bell Executive VP of Products, says companies are neglecting service revenues when his company's software can help them achieve a 10 to 25% improvement in revenues.
"This is a 159 billion market and only 5% of it is using our software, we have tremendous opportunities ahead."
ServiceSource analyzes client data and spots new revenue opportunities based on historical data from all of its customers. It says that it has managed to increase revenues by more than $5 billion for its clients. The company gets paid based on the money it makes for its clients.
"IMost companies do a bad job at managing their recurring revenues. We use predictive analytics to figure out where revenues can be increased."
While much of ServiceSource work is based mostly on maintenance contracts the growth of SAAS companies means that the same platform can be used to manage those types of recurring revenues too.
ServiceSource offers various tools, such as its Revenue Leakage Detector, that enable companies to calculate renewal rates and to pin point opportunities for new revenues. It estimates that every year there is more than $30 billion in annual service revenue that is left on the table.
"Tough economic times means there is a greater need for companies to squeeze as much revenue from their clients as they can."