B2B companies that pay close attention to revenue lifecycle management (RLM) are more likely to be seen as market leaders and to experience revenue growth, according to a new study.
Revenue lifecycle management is a prescriptive, systemic approach to maximizing revenue throughout the lifetime of the customer relationship, according to the "Mastering Revenue Lifecycle Management: Customer Engagement Leads to Competitive Advantage" report from Forbes Insights and ServiceSource. The study polled of 334 C-suite executives and senior managers globally.
Forbes Insights found that respondents with the highest levels of RLM maturity are 46 percent more likely to be market leaders in customer revenue growth and 36 percent more likely to be market leaders in profitability than less mature organizations. In addition, more than 80 percent of respondents said customers are now more likely to expect vendors to engage with them.
"This report makes one thing clear: B2B companies have a window of opportunity to pull ahead of their competitors by investing in the area that benefits both their customers and their bottom line—Revenue Lifecycle Management," ServiceSource CEO Christopher M. Carrington said in a statement. "The research shows that a comprehensive RLM strategy can differentiate a company to its customers and represents a huge revenue growth opportunity. Companies, especially market leaders, are seeing this potential, and the ones that take a holistic approach to their revenue lifecycle will be ahead of the game."
The study found that more than 70 percent of respondents from mature companies believe that enhancing customer loyalty is their organization's primary goal, as opposed 39 percent of less mature companies; 34 percent of executives from organizations with mature RLM processes] believe that the future of customer engagement will likely be shaped by an increasingly educated and demanding customer base.
"The traditional roles of partners, vendors and customers are being disrupted," Bruce Rogers, chief insights officer and head of the CMO Practice at Forbes Media, said in a statement. "Yet this presents opportunities, and a focus on RLM can help maximize those."
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