Maintenance and service contract management is becoming an increasingly important business function for service providers. The benefits are obvious, from the freedom to focus on core business value propositions and maximizing staff time to generating reliable recurring revenue streams. Maintenance and service (M&S) contracts enable the growth of strong partnerships and create opportunities for future upgrades, retrofits, and new equipment or software and hardware installations.
According to a recent study by Aberdeen Contract Management in the Quote-to-Cash Cycle: More Revenue, Less Leakage, 83 percent of survey respondents said contract lifecycle management is “essential” or “important” to the quote-to-cash cycle.
Transitioning long-term customers to M&S contracts may require a rethinking of your business model, but, small- to mid-sized businesses that have mastered best practices and used technology to digitize and automate their contract lifecycle management (CLM) processes have realized these benefits.