Value-added resellers (VARs) rely on the same processes they have deployed for years, which is resource-intensive and manual. As a result, many fail to recognize the significance of the revenue generated by renewals. Worse: their customer's bottom line suffers for it too. In the age of digital transformation, it’s time to cast out the old safety net - for good.
Is Your Safety Net Causing You to Miss Out on Money?
The safety net is a metaphor for how some VARs still deploy outdated beliefs, systems and workflows to run their business. VARs need to look ahead at what's coming next, and we don’t mean shiny new sales.
The lack of focus on renewals has created a divide between good resellers and great resellers. VARs who have embraced automation, eliminating their safety net, understand that there are there are two valuable lines of revenue: net new sales and annuity agreements.
As the world increasingly moves to a subscription-based model, it's more important than ever for businesses to track when their customers IT asset renewals. This ensures that customers don't miss out on essential updates or features, but it also provides a, metaphorically, new safety net in case something goes wrong. After all, if a customer’s support contract expires and you've missed the renewal date, your customer could be left without critical services, support, and face a hefty return to service fee. It sucks to be the reseller who drops the ball.
Consequently, many businesses turn to automated solutions to help manage their renewals, hardware, software, subscriptions and licenses. These solutions make it easy to track when assets and support are up for renewal and ensure that you never miss a beat. As a result, they're an essential tool for any VAR interested in a sticky relationship with their customers.
As the market continues to change, businesses must adapt their beliefs and workflows to meet the demands of the new IT reseller landscape. One way to do this is fill in the holes in your safety net through digital transformation, enabling increased renewal volumes and antiquated processes to be automated.
All Aboard the Digital Transformation Train!
Digital transformation can mean different things to different organizations, but there are common themes. For example, many businesses are looking to automate manual processes, such as renewals, to improve efficiency, save their customers money and overall increase their bottom-line. Additionally, they may use certain analyses to understand customer behavior and trends better. Businesses may also use digital technologies to create entirely new products and services in some cases.
Ultimately, the goal of digital transformation is to use technology to create competitive advantages and drive growth. By understanding how digital transformation can be implemented, businesses can develop a strategy that meets their specific needs.
In our experience, a strong annuity management strategy is what separates the good resellers from great ones (and their respective profit margins). Specifically, with the ServTrax hybrid SaaS-PaaS, resellers can grow their revenue by identifying refresh opportunities, integrating renewals with aligned service offerings, and even capturing renewals for products they did not sell. Additionally, ServTrax allows users to create and manage service level agreements across all of their IT manufacturers in one portal, which contributes to the quality of your customer experience and strengthens the relationship.
ServTrax creates a competitive advantage for resellers and it’s measurable through operational effectiveness and customer retention. As a result, it is paramount for any VAR who wants to increase their IT annuity revenue.
Your New Safety Net
Automated, efficient annuity tracking that bypasses the old safety net, implementing the new, will streamline your business and put you in the category of reselling greatness.
At ServTrax, we understand that digital transformation can be a daunting process. That's why we offer a demo so you can see how our product will work for you and your customers before committing. You'll have peace of mind knowing that you're always up-to-date with industry trends.
Contact us today to learn more about how ServTrax can help you during your digital transformation journey.