With the new possibilities of automation and artificial intelligence for revenue assurance and customer lifetime value.
Revenue Assurance highlights revenue that has been delivered or performed but not billed to customers.
Companies are usually focused on marketing their products and services, making them known and selling them to an interested target group. However, they do not always succeed in getting the most out of the revenue generated: be it mistakenly granted discounts, errors in invoicing, or conditions granted to the customer without the prerequisites being met; the list of possibilities for why a euro earned may not necessarily have the real equivalent value of a euro is long. Although nominal sales are recognized, these are eaten up to a not inconsiderable extent by the transactions described above.
This phenomenon is referred to as "revenue leakage", which translates into German as Revenue leakage or Seepage losses means. Just like a leaky pipe that constantly loses a little, it is the same with sales: The losses caused by the leaks are quite substantial and over a longer period of time they add up to considerable amounts. This means that hard cash is lost. Money that your company is missing elsewhere: for investments, for reserves, for better wages.
To identify revenue leakage, management must first develop an awareness of the possible sources. Because as the name suggests, leakage losses occur unnoticed. They occur because rapidly changing market needs and business models cannot be mapped without loss in software systems. The ongoing evolution of these systems and processes is complex. Over time, errors or suboptimal configurations creep in. There is always too little time for documentation. The knowledge in the heads gets lost. The software logics continue to exist - with real financial consequences.
The more complex the customer relationship and the sales process for a product or service, the greater the risk of leakage losses. For example, they arise when services are provided to the customer on special terms, but a different fee would be due under the contract. Subsequently changed terms and conditions that were not recorded as part of the standard process can also cause revenue leakage if favorable terms and conditions were incorrectly assumed for the customer and billing was carried out on this basis.
Revenue leaks can be found primarily in the software and data used. Today's software and IT landscape makes software engineering and analytics practices increasingly necessary for revenue assurance to detect leakage in real data and processes.
Revenue Assurance highlights revenue that has been delivered or performed but incorrectly billed to customers. This is done by analyzing the processes - especially the order-to-cash process - and the data and systems. To find and close revenue leaks, the IT and software solutions used, the information flows between them, and the business logic they contain are examined in depth.
The result of this is a validated list of revenue leaks, deep insights into true customer profitability, transparency into how customer relationships actually play out, and levers to increase customer value.
Ensure that every euro of revenue sold flows. Get unprecedented insights into customer profitability and order-to-cash execution. Get new tools to increase customer lifetime value.
Make process quality transparent. Eliminate inefficiencies in reconciliation and revision. Reduce the time spent on reviews and error correction. Identify new levers to increase profitability.
Counter rising costs, pricing pressure, profitability pressure and economically challenging times. Ensure transparency and compliance in operational processes. Minimize the risk of process instability through brain drain and churn.
To detect revenue leaks faster and more accurately than previous methods, we use specialized analytics and AI (artificial intelligence) tools. These enable us to scan domain-specific data sets and processes in an automated way so that leakage is identified more quickly. This "scanner" can optionally remain active on an ongoing basis to proactively prevent the reoccurrence of revenue leaks. With this automation and deep insights into customer profitability, we can help you increase customer value quickly, efficiently and sustainably.
Previous methods attempt to detect revenue leaks through sampling or aggregate comparison of accounts, balance sheets, contracts, and other business reports. In doing so, discrepancies can only be detected at the aggregate level or selectively. Accounts or balances provide a pure accounting and reconciliation perspective and do not cover business models and product logics deeply enough.
That's why, to identify revenue leakage, we use Revenue Leakage Analytics based on Artificial Intelligence (AI). These techniques can systematically examine large amounts of data in a very short time and detect anomalies.
AI examines contract content, interfaces between IT systems, and relevant data sets (conditions, price lists, deliveries, etc.) and detects indications of revenue leaks with a new level of precision.
Revenue assurance should not be understood as a pure audit or compliance initiative. Revenue assurance is a much more customer-oriented process: it involves a comprehensive analysis of customer profitability, the design of contract and product conditions, and thus, at its core, an examination of a company's value creation. We start at the order-to-cash process, i.e. where your company provides services to customers and where services subsequently manifest themselves in cash.
In doing so, we identify leakage losses such as incorrectly granted special conditions and discounts, deviating contract regulations, deadline overruns or process errors. The analysis of customers also reveals revenue potential from follow-up business (such as up- and cross-selling), customer retention measures (churn prevention), price sensitivities, next best actions or product recommendations. Revenue Assurance therefore not only eliminates revenue leaks, but also supports your company in sustainably increasing customer value.
Let's talk about how you can Stop seepage losses and Sustainably increase customer value.
Current Insights on the comprehensive revenue protection. The Flowtap Newsletter ensures you the decisive competitive advantage.
We provide in-depth knowledge from hundreds of projects. Our award-winning solutions add value for customers every day.
In our work we use proven methodologies. However, we know that major breakthroughs also arise from creative ideas.
Digitization and technology do not exist in a vacuum. We understand the many different views and needs of various stakeholders.
It is very important to us that our customers knowhow and solutions that are well integrated and always expandable.
We don't lump anything or anyone together and always strive for finding the specific USPs of people and organizations.