Revenue Leakage Overview
How does revenue leakage affect my business? Revenue leakage is the result of lost invoicing or billing opportunities, such as not billing or under billing a customer. This may occur because billable products or services weren’t tracked or reported efficiently. Or it may be that a customer wasn’t invoiced per the terms of their agreement. Revenue leakage is defined as the unplanned loss of business-related revenue.
The problem with missing revenue billing opportunities is that you may never be able to recover the un-billed revenue. Many businesses could realize as much as five percent of their earnings due to revenue leakage. Once the missed opportunity has been discovered, it may be too late to bill per the terms of the agreement. And an invoice for a long-ago service or product will never produce happy or satisfied customers.
How to Prevent Revenue Leakage Over time, customers may wish to purchase additional licenses, or add-on a product or service, want an upgrade, or delay their service. When your manual spreadsheets or current software is not able to store, track, and correctly bill for these changes, you risk revenue leakage within your company and specifically within several of your business processes.
When using manual spreadsheets to track your recurring revenue business, you could be leaking revenue and not realize it at all. Which spreadsheet is the correct one? What happens when there is a data entry error? Manual spreadsheets mean more opportunity for errors and the greater possibility of revenue leakage.
With our team of experts at Foundry52, your ability to acclimate and account for changes will keep revenue flowing to your bottom line, not leaking out before you have the opportunity to capture the revenue. The latest cloud revenue leakage solution for products or services is to implement Salesforce Contracts with CPQ. Foundry52 has years of billing experience. Our business domain experts that will configure and automate Salesforce CPQ so it will know effectively what to bill, when to bill and how to bill – all on one platform, in the cloud.