Revenue Leakage a Digital Life & Death Issue
Avangate, a digital commerce solution for software, cloud and online services, recently unveiled its Summer '15 release and introduced several new features and capabilities to help enterprises address a major challenge in the new 'services' economy - revenue leakage.
As consumers increasingly expect frictionless interactions with vendors and merchants at every possible point of engagement (online, in-store, in-app, call centers, etc.), optimizing the digital transactions that must occur to maintain the optimal state of revenue performance for the enterprise becomes exceedingly important.
"The New Services Economy represents the next rapidly expanding trillion-dollar market and is reshaping how companies should view Digital Commerce. It's no longer a hit-and-run, one-time transactional economy. The proliferation of pay-as-you-go business models and the explosion of revenue moments across the activation, upsell/cross-sell, renewal and retention stages require companies to focus beyond just upfront customer acquisition," said Carl Theobald, CEO of Avangate.
"Each revenue moment is an opportunity for digital businesses to build long-term relationships with their customers. Otherwise, it can be a point of failure that drains revenue. How companies navigate these moments and points of revenue leakage across the Commerce Lifecycle are life or death for digital businesses."
Avangate's newest release focuses directly on the current challenges of client retention (from upgrades and downgrades to early renewals), presenting several new and enhanced solutions to recover potentially impacted revenue and convert those transactions directly to revenue uplift. Avangate users are now able to control these often elusive revenue moments through new campaign types, interaction controls, and conversion dashboards to drive proactive account engagement and cancellation prevention.
The new release also provides users the ability to engage in rapid experimentation with retention templates, expanded A/B testing scenarios and statistics, and retention reporting. And to focus directly on authorization and conversion rates, Avangate has expanded its localized payment methods, introduced an optimized payment flow and conversion process, and enhanced global failover and payment authorization.
Avangate conducted a survey recently which illustrates the increasing interest in and demand for online services as well as consumers' preferences for how they purchase or subscribe. For example, 97 percent of consumers surveyed prefereed flexibie purchasing options when selecting premium online services. , suggesting that companies should adapt their retention strategies to take advantage of revenue moments outside of the intial acquisition phase. The survey revealed .
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