Encover, a provider of technology and services for selling service contracts and software subscriptions, has announced that they have sponsored an Aberdeen Group study titled “Service Contract Management - Winning Strategies for Managing Customer's Expectations.”

 

According to the report, Best-In-Class companies leverage contract management to increase service revenue and improve customer satisfaction. The companies surveyed in the study were able to achieve a ninety percent contract renewal rate. The research firm informs that this represents a twenty percent jump from the industry average.

 

The report reveals that by focusing on service contract renewal and attach rates, leading service organizations benefit from a higher level of revenue stream predictability, as well as a stronger base of renewal revenue.

 

Technology also provides an advantage to these leading service organizations. The report shows that contract management automation enables these organizations to drive year-over-year contract renewals with minimal efforts.

Vice President - Principal Analyst at Aberdeen (News - Alert), Bill Pollock, explained that contract management enables service organizations to increase revenue and improve customer satisfaction.

“Our research shows that 80 percent of best-in-class firms presently use contract management solutions to help place customers on contract (i.e., attach rate), compared to almost half that percent (42 percent) for all others.”

Pollock noted that this will allow leading firms to continue generating higher levels of revenue from this more predictable and manageable source.

Encover made headlines last month for naming John R. Vitalie as president and chief executive officer. Vitalie most recently served as regional vice president of The NASDAQ OMX Stock Market, Inc., based in Silicon Valley. He will also serve as a member of Encover's Board of Directors.