Why Investing in Business Software Is the Key to Better Revenue Management

The key to unlocking growth lies in understanding — and addressing — lost revenue. George Deeb from Red Rocket Ventures explains businesses typically close only 20% of their leads while losing the remaining 80%. Lost revenue can be linked to a variety of issues within a business, including product, pricing, sales, and marketing. In other cases, it can be caused by outside factors like competition and economic conditions.

To effectively address lost revenues, businesses must understand the performance of their marketing campaigns, evaluate sales team effectiveness, monitor competitor activities, and gather customer feedback.

This is where investing in business software comes in. The right business software can serve as a comprehensive tool that allows companies to consolidate and analyze this data, providing valuable insights for informed decision-making. Still unconvinced? Keep reading to learn more about the key to better revenue management. 

Why Investing in Business Software Is the Key to Better Revenue Management

The increasing variety of business software

A diverse array of software solutions have emerged in response to growing demands for better revenue management. Each of these plays a unique role in optimizing operations, and it’s the business’ prerogative to determine which software solution will best address their needs.

For starters, customer relationship management (CRM) tools help fortify customer relations. CRM juggernauts like Salesflare and Salesforce offer fundamental features crucial for small businesses, ranging from seamless contact management to improved task management. The core objective is to elevate customer satisfaction through personalized interactions and streamlined workflows, laying the foundation for increased customer retention.

Meanwhile, billing software helps streamline revenue collection, ensuring businesses extract the rightful value for their services, regardless of cumulative or band-tiered pricing models. Softrax has consumption billing features that include meticulous tracking of minimums, overages, and tiers, ensuring that businesses have a centralized hub for effortlessly monitoring usage levels.

All the while, its multi-tenant, cloud-based platform maximizes task delegation. The software ensures day-to-day tactical functions and compliance with ASC 606 and IFRS 15 standards are executed accurately, allowing team members to focus on strategic analytical tasks.

Lastly, marketing automation can ensure effortless data governance and provide detailed analytics and reporting on campaign performance, especially when paired with artificial intelligence. This helps businesses gain deeper insights into customer behavior and preferences, thereby refining marketing strategies for better revenue outcomes.

More businesses investing in business software 

Notable partnerships and software upgrades in recent years confirm the increasing importance of business software in revenue management. In 2021, multinational automobile manufacturer Ford made a strategic move by partnering with Salesforce to launch VIIZR, a subscription software service that digitizes paperwork for contractors, repair technicians, and other tradespeople.

This collaboration aimed to provide Ford with a source of steadily recurring subscription revenue that can help hedge economic downturns or disruptions, such as shortages of semiconductors — showcasing how CRM tools are essential for businesses of all sizes.

Similarly, Telestream took a significant step forward in late 2023 by choosing Softrax to automate its revenue recognition processes. Controller Jennifer Fehrmann expressed how the robust reporting capabilities, high-security standards, and scalability of the billing software were additional factors that appealed to Telestream.

This investment has already helped the privately held computer software company reduce its close process timeline by three to four days while eliminating manual activities, thereby improving controls, reducing audit scrutiny, and minimizing audit costs. 

These partnerships illustrate how strategic investments in apt software align businesses with the ever-shifting demands of the market. With that, we can expect more companies to recognize the transformative impact of strategic software partnerships on driving revenue success.

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