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.
- 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.
The Price of Infidelity? Billions.These findings come at a time when recurring revenue management is more important to a company’s bottom line than ever before. Recurring revenue from software and hardware maintenance and support and SaaS subscriptions account for between 30 to 40 percent of a company’s revenues and up to 50 percent of profits. In August, ServiceSource released the findings of its first annual Global Recurring Revenue Index. That study, based on analysis of $25B in recurring revenue under management globally since 2008, found that engaging customers on a consistent basis improved a company’s renewal rates by up to 14 percentage points. For Global 1000 technology companies, this value collectively represents billions of dollars in additional revenue. “Gone are the days when a company's chief concern was winning new customers,” Heckart continued. “This outdated approach results in businesses leaving significant revenue on the table. In fact, most companies make the majority of profits from the customers they've already won. This is a major mindset shift and requires new thinking, tools, and focus.” About ServiceSource ServiceSource International, Inc. (NASDAQ:SREV) is the global leader in recurring revenue management. Renew OnDemand™, the only cloud application built specifically to grow recurring revenue, automates a highly valuable but typically manual business process. By leveraging big data to give companies a complete view of their customers, Renew OnDemand and our proven services drive higher subscription, maintenance, and support revenue, improved customer retention, and increased business predictability. ServiceSource Customer Loyalty Survey With over a decade of experience focused exclusively on growing recurring revenue, ServiceSource's products and services are based on proven best practices and global benchmarks. Headquartered in the Cloud Corridor of San Francisco, ServiceSource® manages over $9 billion in recurring revenue for the world’s largest and most respected technology companies. ServiceSource renews a customer contract every 47 seconds through engagements in more than 150 countries and 40 languages. For more information, please go to www.servicesource.com. Forward-Looking Statements This press release contains forward-looking statements, including statements regarding the benefits of ServiceSource offerings, our managed services and our Renew OnDemand cloud platform and application. These forward-looking statements are based on our current assumptions and beliefs, and involve risks and uncertainties that could cause our results to differ materially from those expressed or implied in our forward-looking statements. Those risks and uncertainties include, without limitation, fluctuations in our quarterly results of operations; the risk of material defects or errors in the our software offerings or their failure to meet customer expectations; migrating customers to Renew OnDemand and the ability to integrate Renew OnDemand with other third-party applications used by our customers; errors in estimates as to the renewal rate improvements and/or service revenue we can generate for our customers; our ability to grow the market for service revenue management; our ability to protect our intellectual property rights; the risk of claims that our offerings infringe the intellectual property rights of others; changes in market conditions that impact our ability to sell the Renew OnDemand solution and/or generate service revenue on our customers' behalf; the possibility that our estimates of service revenue opportunity under management and other metrics may prove inaccurate; demand for our offering that falls short of expectations; our ability to keep customer data and other confidential information secure; our ability to adapt our solution to changes in the market or new competition; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our periodic reports and registration statements filed with the Securities and Exchange Commission, which can be obtained online at the Commission's website at http://www.sec.gov. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements. Connect with ServiceSource: http://www.facebook.com/ServiceSource http://twitter.com/servicesource http://www.linkedin.com/company/servicesource http://www.youtube.com/user/ServiceSourceMKTG Trademarks ServiceSource, Renew OnDemand and any ServiceSource product or service names or logos above are trademarks of ServiceSource International, Inc. All other trademarks used herein belong to their respective owners.