54% of customer non-renewals in EMEA are due to an inability to connect with customers. The combined effects of bad data and a lack of loyalty is hitting the region harder thancompeting markets.
Globally, these ‘non-responsive’ customers are the top reason for customer loss, accounting for 45% of non-renewals. However it seems this is an issuefelt most strongly in the euro-crisis zone.
The report from ServiceSource analyses over $1.4 billion in lost revenue from more than 50 companies, globally over the last two years. Estimates from industry research firm, Gartner put the total figure lost due to inadequate data management and processes as $30 billion.
Martin Moran, managing director, EMEA ServiceSource commented “With potential revenue of $30 billion up for grabs, if EMEA businesses focused on implementing strong data systems, and building loyalty through effective relationship management they would outperform competitive regions in almost every area.”
When it comes to keeping in contact with customers, Asia outperforms EMEA by 14%, resulting in customers being four-times more likely to upgradethrough a current vendor than to a competing product.
Asia does however have its own regional issues, including weaknesses in communicating cost-benefit propositions to existing customers. The region loses approximately 24% of business through ineffectively communicating a service’s value. EMEA stands at 14%, outperforming both APAC and the US.
Martin Moran added: “Whilst businesses in EMEA should be undoubtedly concerned about the effects of bad data, the real worry here is the lack of focus on identifying why customers leave. Whether through bad data, competitive pressures or lack of customer satisfaction, access to real-time, analyticaldata is the key to unlocking these streams, worth billions.”
“At ServiceSource we have launched the first cloud application, Renew OnDemand, to address this problem and to maximize revenues.”
The two-year global research programme, undertaken by ServiceSource, analysed over $1.4 billion in lost revenue from more than 50 software, hardware, industrial systems and healthcare companies.