Recurring Revenue

Monetizing Recurring Revenue Models

Recurring revenue business models, often deployed through subscription or usage-based revenue streams, have become popular among software and technology vendors in recent years. But this emerging revenue stream is also creating new opportunities across most industrial sectors, including manufacturing, financial services, healthcare, media, business services, transportation and logistics, and leasing. In fact, according to a recent CFO Research study, more than half of surveyed senior finance executives report that at least 40% of their current revenues are recurring, and even more finance chiefs
expect to reach the 40% level in five years.

To be successful, CFOs need to adapt and learn how to monetize recurring revenue models to drive business strategy and profitability. As companies adopt or expand their reliance on recurring revenue, they need a modern monetization platform that supports the entire order to cash process. When finance deploys a flexible monetization platform, they can help to promote experimentation with business models and pricing and allow the organization to operationalize successful practices and change their approach as they learn what works.

This white paper will explore:

  • The challenges of moving to a recurring revenue model, including the limitations of traditional spreadsheets and custom systems to handle multi-attribute pricing models.
  • Best practices for transitioning to a recurring revenue model, including changes to how the business is analyzed and how the CFO can lead the shift in mindset.
  • The benefits of a recurring revenue business model, including deeper customer relationships and a more predictable cash flow.