Addressing the Challenge – Intelligent Contract Management Solutions

Savvy companies are beginning to capitalize on the maintenance contract opportunity by employing intelligent contract management solutions. These unique tools gather critical service and asset data from all applicable applications, databases, spreadsheets and reports in a repeatable, predictable process and provide a consolidated view of that data to users. To turn this information into true business intelligence, leading contract management solutions such as Managed Maintenance Inc.’s OneViewapplication will notify users of impending service opportunities based on pre-defined criteria. For instance, a sales person may elect to be notified of all warranty or contract expiration’s in the next 90 or 120 days – criteria that can be modified by individual customer. Typically, users are also able to sort the data with filters including customer, manufacturer, impending expirations, and type and model to find the precise information they need quickly.

When leveraged effectively with a solution such as Managed Maintenance Inc’s OneView, contract data yields significant benefits for businesses including:

• Generation of intelligence about the customer’s buy cycle – Most VARs start their sales cycle when the client calls. With a contract management solution, they can act as a trusted advisor when the buying cycle starts. Intelligent contract management solutions enable the channel partner to recognize action points for customers and approach them at the appropriate time with options for service renewal, technology refresh and/or disposal. By engaging customers during their buy cycle – or even alerting them that their buy cycle is starting – the VAR can drive the decision-making process and position its company as a trusted advisor. Rather than being reactionary, the VAR is able to proactively make recommendations and inform customers how to budget appropriately for those decisions, thereby increasing customer satisfaction and revenue generation.

• Creation of a “sticky” customer interface – By providing proactive communication to end customers around their asset’s lifecycles, a VAR is able to deliver a competitive differentiators for its business. Recognizing the value of theasset tracking service, end-users may request that the VAR track additional assets obtained through other vendors. With this competitive information in hand, the VAR is able to generate cross-selling opportunities when those assets approach the time for refresh or renewal. VARs may also have access to end-of-life or disposal business that they wouldn’t have been able to capitalize on previously and can truly serve as a “one-stop shop” for customers.

• Improved productivity and efficiency – With a contract management solution in place, sales and service teams no longer spend time searching for customer contract data. Self-service access to the tool ensures rapid retrieval of data and efficient use of time.

• Improved customer satisfaction – With end customers able to accurately plan and budget for expenses, satisfaction with the reseller soars. These tools also enable VARs to consolidate numerous maintenance contracts for the customer at a cost savings, further solidifying relationships in the account.

• A recurring, revenue stream of maintenance contracts – VARs, VADs and manufacturers alike are able to capture a previously neglected market and establish a steady stream of income based on maintenance contract revenue, which yields one of the highest profit margins in the business. One Managed Maintenance Inc. client estimates that it has created more than $30 million – a 150% increase in new revenue – from marketing and management of long-term contracts with its contract management solution in the first 18 months alone.

• Better business management – Contract management tools enable the channel to forecast maintenance annuities effectively and promote more informed decision-making. In addition, the tools can provide visibility into the sales team and help leaders quickly identify extremes in performance.

Additional Benefits for VADs and Manufacturers

In addition to implementation by individual VARs, many VADs and manufacturers are electing to implement contract management solutions as a value-added service to their partners. Beyond increasing revenue potential by pushing opportunity data to their VARs, these tools provide other specific benefits for VADs and manufacturers, including:

• Better visibility into the channel – VADs and manufacturers implementing contract management solutions can easily determine which VARs are capturing the service maintenance renewal opportunity and which are not. This intelligence allows companies to further entice partners to manage service opportunities and/or enables them to close gaps themselves.

• Ability to track service needs – With better tracking of contract data, manufacturers can more accurately budget and staff for technology support, ensuring the best quality service at the least possible cost. VAR’s are able to better manage and stock technology inventory at just-in-time levels.

• Improved brand loyalty – With maintenance renewals captured more effectively, manufacturer products remain in customer accounts longer. The positive customer association with the VAR extends to the manufacturer, creating brand loyalty.

**For more information visit www.managedmaint.com**