Furthering Amy’s theme of knowing your customer better through the use of analytics, let’s explore fiscal planning for 2011. Many of our MLS industry partners are meeting right now with their finance committees, reviewing the current number of subscribers, the current year’s revenue numbers, and working on 2011 budgets. Tough decisions on programs, events, staff, new investments, etc. are made in conjunction with the revenue forecast.
Looking back at 2010, many organizations have not only met, but far exceeded their revenue targets. High-fives all the way around! This defines ultimate success for an organization, doesn’t it? Does this mean next year’s forecast should follow the same model? Should the forecast be increased or decreased? Consult the crystal ball or even flip a coin? Neither method has historically created an accurate prediction.
With all of these questions, analytics are more important than ever to help separate the signal from the noise, the wheat from the chaff. Our Scout for SAFEMLS solution uses rich analytics to identify revenue and cost reduction opportunities by recognizing shared subscription accounts. Revenue assurance is the formal name for ensuring everyone is paying for services received and is a very important part of revenue forecasting. Easily understood is the straight line drawn between a shared subscription and a lost revenue opportunity. Which begs the question – “Why budget for a 10% revenue loss when more than 25% of your subscribers are sharing access to services?”
As your organization heads into this 2011 budget season, please ask the tough question – ‘are we maximizing the revenue for all users of our services vs. just the current paying subscribers?’ If the answer falls along “we don’t know” or “it’s unclear” or “what??” please drop us a line to discuss our proven track record of maximizing our customers’ revenue and how we can create success for you.
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