According to Gartner, there will be 21 billion connected devices worldwide by 2020. This growth is set to bring with it an increase in potential revenue from recurring revenue streams. In order to benefit from this increase, you need to ensure that you have an effective recurring revenue management or RRM system in place.
You need to make sure that you have a system in place which that enables you to monetize your business effectively, today and in the future. Here are the top requirements you need to consider when you are looking for an RRM system.
Product catalogue that works
An extensive and easy to manage product catalogue is an essential ingredient of any RRM system. You need to make sure that you support usage based charging, subscription and one off payments, or any combination of these. You also need to ensure that multiple currencies, languages and payment methods are supported.
Segmentation of customer base
This is a vital component of any RRM system that works well. You need to be able to segment customers in ways such as geographically and demographically. You also need to be able to offer individualised packages and pricing as a result of the segmentation.
One of the most off-putting things for a customer is if they cannot access a service as they wish to. You need to eliminate the potential for problems by employing an RRM system that manages customer information, knows what they are entitled to have access to and manages and changes any upgrades effectively and efficiently.
Access to current and correct data is vital in enabling you to maximise your recurring revenue stream. You need a system that stores all of the relevant customer information you need and enables you to identify patterns in usage when they occur.
High level of agility
You should always be able to interact easily and quickly with the market, which is why you need an RRM system that is agile. You need to have the ability to bring in new products, and make changes, seamlessly. You should also be able to offer discounts and vouchers for your products when you wish to.
Maximisation of revenue possibilities
In order to maximise your recurring revenue potential you need to get your product out there. You should be able to push potential revenue opportunities to other systems in real time, and with no complications. This includes having an RRM system that provides descriptions of such events so that external systems do not have to produce them.
Ability to manage recurring billing
You are never going to maximise your revenue potential if you do not have a recurring billing system that works. You need billing to be achieved seamlessly; including when a mid-period upgrade or downgrade is involved. Your billing system should integrate easily with payments systems and invoices and statements should be provided in different formats, including human readable text, PDF and HTML.
Enables excellent customer care
Customer satisfaction is a major factor in retaining customers and helping to maximise your revenue. You need an RRM system that integrates with CSR and CRM systems to ensure that customer issues are dealt with effectively and to manage contracts and upsells. You also need to give customers self-service options to enable them to manage their own accounts.
Close to real time usage data
It is vital that you know what your usage rates look like so that you can make necessary adaptations. Employing an RRM system that works in close to real time, when supplying data, aids in decision making and helps to improve and sustain usage figures.
Integrates with other platforms
An RRM system is not the only system you will employ, and you want them all to work together, in the most effective way possible. That is why you need an RRM system that easily integrates with systems such as CRM and ERP.
You can see there is massive potential for you as the Internet of Things continues to expand. Take a look at all the points we have made, and hopefully you will be on the way to satisfying that potential.