Service Renewal Findings and Statistics from 50 Technology Hardware Companies

The advancement of technology combined with the importance of service revenue generation has led to a shift in the way companies organize contract renewal. In fact, according to a recent survey of 50 technology hardware companies, most organizations (72 percent) have a dedicated team with one job: to handle service contract renewals. Below are a few additional statistics published by Maintenancenet that focus on aftermarket service revenue generation in VARs:

Service Renewals Coverage

  • Service renewals are handled by an in-house team(54 percent)
  • Sales force IS compensated for renewing service contracts. (72 percent)
  • Large customers are contacted 90+ days prior to contract expiration most of the time to always(74 percent)
  • Medium sized customers are contacted 90+ days prior to contract expiration most of the time to always(61 percent)

Sales Force Communication

  • Renewal sales and marketing activities are tracked and documented sometimes(53 percent)
  • Sales management has visibility when reps initiate the renewal process with each customer, most of the time to always(61 percent)

Service Renewal Technology

  • Most companies do NOT have a dashboard in place that tracks renewal status or customers and upcoming service expirations. (91 percent)
  • Renewal quotes are NOT automatically delivered to the channel partner. (70 percent)
  • Renewal quotes are NOT automatically delivered to the end customer. (91 percent)

As you can see, most VARs do not have software in place to automatically track and renew ongoing contracts. If you're experiencing any of these problems and would like to correct the situation, call CloudCover. CloudCover provides the tools necessary to gain control of your maintenance portfolio and maximize its value to the bottom line. Contact us today to schedule a demo.


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