End to End Revenue Management

If B2B Tech companies want to grow profitably, then how you manage revenue is important.

The current end-to-end revenue management process is broken

It’s fraught with errors, and example of just a few of those are:

• Copy/Paste errors
• Takes too much time to generate accurate proposals, order forms, and invoices
• Sellers make up new products, prices, and terms on the fly
• Invoices and Order Form details don’t match delaying payment with large enterprise customers
• Opportunity Values don’t split one-time revenue, annual recurring, or multi-year term. No one knows the deal construct to forecast accurately
• Precious ARR data is living in a spreadsheet
• Upsells aren’t co-termed to existing renewal dates causing invoicing issues
• Renewals are generated as invoices which is too late to impact retention

An Integrated Approach to Revenue Management

B2B Tech companies can dump the manual processes and generate revenue automatically.  The benefits are significant.

Reduce Revenue Leakage: B2B tech companies have recurring revenue from subscriptions, and one-time revenue from services or hardware.  It’s not uncommon for revenue leaks to occur between quoting, service delivery and invoicing.  End-to-end revenue management simplifies billing processes and ensures that all generated revenue makes it to an invoice in a timely manner.

Pricing Optimization: B2B tech companies often have complex sales processes, involving multiple products or services, pricing models, and customer segments. Without an integrated approach pricing, your deals are more prone to price variation and discounting.  Sellers should be able to generate quotes in minutes using standard products and prices.  Renewals should be automatically generated in advance of the renewal date.

Gross Margin & Profitability: Effective revenue management can improve profit margins by identifying opportunities to increase prices, reduce costs, and maximize the lifetime value of customer relationships. It helps companies make data-driven decisions that impact the bottom line.

Data-Driven Decision-Making: B2B tech companies deal with data from various sources. An end-to-end revenue management approach drives data from one source, enabling better decision-making, forecasting, and performance measurement.

Deal Attribution: B2B tech companies often face challenges in aligning sales and marketing efforts. An integrated approach to revenue management ensures that all customers and opportunities have accurate attribution, so when you are making marketing and sales investments, you know where to spend them.  The result is better demand capture and conversion for every dollar spent.

Cross-Selling and Upselling: Effective revenue management helps identify opportunities for cross-selling and upselling additional products or services to existing customers, increasing the average deal size and customer lifetime value.

Forecasting and Planning: B2B tech companies need accurate revenue forecasting to make informed decisions about resource allocation, hiring, and strategic planning. End-to-end revenue management provides the tools and processes necessary for accurate revenue projections.

Compliance and Governance: Some B2B tech companies report to a board comprised of investors.  Those investors expect revenue compliance and accuracy.  Having your most important revenue type, subscription revenue, generated from a single system ensures this.

Competitive Advantage: Pricing (and deal terms) are a first principle of marketing.  Implementing an end-to-end revenue management strategy can provide a competitive advantage. It allows companies to implement price changes immediately to respond to market demands.

In summary, end-to-end revenue management is essential for B2B tech companies to optimize revenue, improve profitability, and maintain a customer-centric approach. It involves aligning pricing, sales, marketing, and data-driven decision-making to drive growth and competitiveness in the tech industry.

TekStack’s approach to Integrated Revenue Management

TekStack is the only platform that brings all revenue functions into one system:

• Simplifies the experience for sellers
• Gives marketers the information they need to drive important decisions on where to invest spend
• Provides accounting accurate deal information and automatically generates invoicing for recurring software, hardware, and services
• Drives service invoicing from one-time upfront, milestone delivery, and time sheets
• Creates visibility on customer lifetime value and profitability
• Generates all the important Net Retention Rate and ARR reporting needed to impress stakeholders

Most CRMs need add-ons like:

• Marketing Automation
• CPQ
• Accounting and Invoicing
• Professional Services Automation (Time Sheet Billing)
• Subscription Management
• Reporting

Not TekStack, everything comes as one, in one source of truth, so that you can improve your revenue management process to squeeze the juice a little bit more.