This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

IT Buyers To Vendors: “It’s Complicated”

Stocks in this article: SREV

ServiceSource® (NASDAQ:SREV), the global leader in recurring revenue management, today announced the findings of its “2013 Customer Loyalty Survey,” a survey of more than 200 IT decision-makers about their relationship with hardware and software vendors.

When asked to describe their relationship with their top IT vendor, “’til death do us part” was far from most respondents’ minds. Fewer than 18 percent described their relationship as “married.” More than half were open to playing the field, with 66 percent defining their relationship with their top IT vendor as either “single,” “open” or “it’s complicated.”

Most IT departments feel neglected and ignored, with 57 percent of respondents only hearing from their vendors at renewal time, if at all. It’s hard not to see why these decision-makers flirt with other suitors. Fifty-two percent of respondents received sales calls or emails at least once a month, with 60 percent of respondents taking sales calls with their vendors’ competitors at least once per quarter.

Other key findings from ServiceSource’s “2013 Customer Loyalty Survey” include:

  • 52 percent defined their relationship with their top IT vendor (the one they spend the most on) as either "open" or "it's complicated."
  • 52 percent of respondents received calls or emails from their vendors’ competitors at least once per month.
  • 42 percent take sales calls from their vendors’ competitors at least once per quarter; 20 percent take them at least once per month.
  • Over 25 percent of respondents participate in competitor webcasts every quarter, with 69 percent at least once a year.
  • Nearly half of respondents (49 percent) have used competitive intelligence from a sales meeting to renegotiate a current contract.

ServiceSource Customer Loyalty Survey

  • Sixty five percent of on-premise software respondents view SaaS as a potential suitor to replace existing systems.
  • Of those with a preference, respondents were twice as satisfied with their hardware vendors as their software vendors, indicating that loyalty is harder to maintain as you move up the technology stack.

“Our survey highlights that customer relationships and loyalties are constantly being undermined by outside forces. Sadly, most businesses have no idea,” said Christine Heckart, Executive Vice President of Marketing, Strategy, People and Systems at ServiceSource. “It’s no wonder that customer churn is top of mind for every company. As businesses focus more and more on recurring revenue, they can’t afford to win customers just once and expect fidelity for life. They need to win them over and over again.”

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs