Systems for Selling Recurring Revenue Products

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing

Recurring revenue gives the company several sales opportunities.

Here are the key systems to install for selling recurring revenue products.

New logos -- this process finds new prospects and acquires them as an initial customer.

New logos represent an expansion of the customer base by bringing in new users.

This customer acquisition system must generate awareness among new prospects.

Renewals -- this process seeks to retain existing customers by increasing renewals.

Maintaining existing customers comes from the successful use of the product.

The renewal process tracks the customers' usage of the product and looks to maintain the customers' engagement through customer success.

Customer retention comes from strong customer support.

Customer expansion -- this process seeks to sell more services to existing customers.

Recurring revenue companies have multiple products to sell.

This system proposes additional products to existing customers.

A good, better, best product offering helps with the upsell and cross-selling.

There are three systems for selling recurring revenue products: find new customers, renew existing customers, or sell more to existing customers.

Consider the system for each one of these for your startup.

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Let’s go startup something today.

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How To Add Recurring Revenue

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In addition to turning your core product into recurring revenue, there’s also adding additional services for recurring revenue.

Not every business can turn the core product or service into recurring revenue.

The next best thing is to add recurring revenue products into your business.

Here are some key add-ons to consider:

Support -- consider moving your support process into recurring revenue.

By charging a monthly maintenance fee you build recurring revenue and maintain contact with the customer.

This gives you the opportunity to upsell the customer to new products and maintain a relationship with them.

Training -- consider setting up a series of training sessions that continually train the customer.

This works well for enterprise customers who must continually bring new hires up to speed on your product.

Since this is an ongoing process, it can be set up as a recurring revenue sub-unit.

Upgrades and updates -- consider selling the upgrades on a recurring revenue basis so the customer receives new updates regularly.

Since products are often upgraded, this provides an opportunity to charge on a recurring basis.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
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How To Integrate Recurring Revenue Into Your Business

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In transitioning your business to recurring revenue you’ll need to make changes to your processes.

Here are some key steps in integrating recurring revenue into your business.

Reconfigure your product offering so it can be used on a recurring basis.

Update your marketing to promote the new product offering.

Highlight the benefits of subscription with additional values such as always available and unlimited usage if appropriate.

Set up commissions and incentives in the sales team to encourage selling the subscription products.

Update your website to integrate the purchase and subscription management into it.

Give the customer the ability to control their level of participation and ability to opt in and out online.

Set up product usage tracking so you know how customers are using the product.

For those who haven’t used it in a while you can reach out with promotional offers to regain their participation.

Set Up an online support process to handle customer requests through the website.

Move to automated payment systems using online services.

By automating the support, payment, and customer services, you can create a more efficient business process.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.