Overview
Our client is a leading provider of document scanning, imaging, information management and document storage solutions. It serves more than 100,000 B2B corporate customers across North America. Our client annually renew contracts of its customers while meeting financial, legal, and compliance requirements under the light of demographic circumstances.
Challenge
Our client’s business grew bigger, but so did their challenges. They had to keep track of respective customers and contracts were eligible for price renewals, and notify them in advance about the upcoming price changes. They also had to make sure that the revised prices were applied correctly to the work orders and invoicing systems on the scheduled dates.
While performing contracts renewal monthly exercise for eligible customers, it requires to take care various factors, such as contractual obligations, competitor prices, storage facility costs, ECI, and CPI. However, some contracts have limitations that make price renewals difficult. For example, some contracts have a fixed period of time where prices cannot change, while others have a maximum limit of price increase that cannot be exceeded, even if the market and competitor conditions justify higher revisions.
Additionally, the leadership needed to track customer engagement after contract and price renewals to ensure customer retention, satisfaction and than monitor revenue growth.
Our Approach
To overcome the challenges associated with contract renewals, the Data Engineering team took proactive steps to streamline the process by integrating contract details from the Customer Relationship Management (CRM) system and also integrated customer, pricing, and invoicing datasets from DHS Total Recall into enterprise data warehouse which allowed to gain comprehensive insights into the contracts, customers, existing prices, and geographical information.
The Data Engineering team developed a smart system to execute monthly for prices and contract renewals. The system automatically finds the customers who are eligible for price changes based on their contract dates. It also calculates the new prices using a custom engine that considers various factors such as contracts obligations, ECI, CPI, and price adjustments percentages defined at different levels as per Price Schedules, Price Schedules empower to match the unique needs and attributes of each segment, leading to effective and tailored price management.
Then, system sends personalized letters to the eligible customers every month, explaining the new services, offers, and prices at least 30 days before the contract dates, giving the customers enough time to review. Later on, system applies the revised prices efficiently into downstream, adhering to the predefined scheduled dates. This meticulous execution minimizes disruptions, minimizes human intensive efforts and errors which leads towards better customer experience.
The Data Visualization and Analysts team designed interactive dashboards explaining critical performance metrics explaining organic revenue and volume growth month over month at various levels such as Regions, Markets, Customers and Services for the leadership to highlight sources of revenue and volume growth, pricing at Industry, Markets, Branch and Customer levels. Armed with such level of information, the leadership became able to make informed decisions, identify trends, and adjust strategies as needed to drive the company’s revenue success.
Outcomes
Implementing this fully automated solution is resulting in highly positive outcomes for our client, demonstrating its effectiveness driving revenue growth, process simplification through automation, reducing human errors, and improving customer satisfaction through transparent communication and visibility.
The storage business is experiencing a remarkable organic growth rate of around 7%, while the services segment is demonstrating even more impressive growth, ranging from 8% to 12%, along with measurable KPIs. This significant increase in the storage segment’s performance is highlighting the positive impact of the solution on market competitiveness, leading to greater efficiency and customer satisfaction.
This system is not only enhancing customer satisfaction but also contributing to better customer retention rates. One of the key benefit our client achieved is to avoid of the implemented solution is its ability to prevent mistaken or higher price renewals by adhering to contractual obligations. By ensuring that price revisions are in line with agreed terms, the company is successfully reducing customer complaints and credits.
The system is improving customer satisfaction and retention rates and also helps our client to avoid mistakes or excessive price renewals by following contractual obligations and market circumstances. By making sure that price changes are according to agreed terms, the company is successfully lowering customer complaints and credits.
The outcomes demonstrated that the solution was a resounding success, fostering growth in both storage and service sectors while mitigating customer-centric challenges. Through this data-driven approach, our client started to make informed decisions, optimized its operations, and achieved remarkable revenue improvements.
Next Steps
Moving forward, the leadership plans to closely monitor and analyze the trends and patterns emerging from the implemented solution to ensure its reliability and effectiveness over time.
Moving forward, the leadership plans to closely track ongoing growth rates, customer satisfaction levels, and customer feedback under the light of regional circumstances to more focus on business.
The data engineering and analytics teams will continue to refine and optimize interactive dashboards to provide more detailed pricing insights. Additionally, they will collaborate with the sales and customer support teams to gain further insights into customer preferences and expectations, facilitating more informed decision-making.