SOURCE: Aberdeen Group

Aberdeen Group

April 09, 2009 12:51 ET

Top Field Service Performers Use Contract Management to Increase Service Revenue

Best-in-Class Firms Leveraging Contract Management Report a 26% Increase in Total Service Revenue Over the Past Two Years

BOSTON, MA--(Marketwire - April 9, 2009) - In an intensifying competitive service landscape, Best-in-Class service firms look to learn from contract management as a tool for increasing service contract compliance, managing customers' expectations and increasing the percent of revenue derived from service contracts. As such, these firms are actively taking steps to automate their existing contract management functions, integrate them with service execution and outsource designated activities to qualified vendors, as indicated in "Service Contract Management - Winning Strategies for Managing Customers' Expectations," published by the Aberdeen Group, a Harte-Hanks Company (NYSE: HHS). To obtain a complimentary copy of the report, visit: http://www.aberdeen.com//summary/report/benchmark/5841-RA-service-contract-management.asp.

Aberdeen's benchmark survey of over 150 companies identified that compliance with Service Level Agreements (SLAs) and the mandate to increase service revenue were top of mind for most service firms, and the need to address these pressures with the proper mix of technology and strategic partners are the major drivers for these firms to evaluate contract management initiatives. In an attempt to meet these pressures, leading firms are also more than twice as likely as all others to benefit from the ability to automatically renew service contracts (46% and 21%, respectively).

"Our research shows that 80% 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%) for all others. This represents a significant advantage for leading firms to continue generating higher levels of revenue from this more predictable and manageable source," said Bill Pollock, Vice President - Principal Analyst at Aberdeen. "Coupled with a 90% contract renewal rate, the Best-in-Class service organizations have a double advantage over all others, both at the point of service origin, as well as at the end of each contract renewal cycle."

To support improved contract compliance, and increase contract-related service revenue as a percent of total revenue, leading firms were nearly two times as likely as all others to use contract management solutions to help place customers on contract and were able to attain a 20% higher contract renewal rate than Industry Average firms. As a result leading firms were experiencing:

* 90% contract renewal rate

* 28% improvement in SLA / contract compliance over the past two years

* 26% increase in total service revenue over the past two years

A complimentary copy of this report is made available due in part by the following underwriters: Encover and Metrix. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com//summary/report/benchmark/5841-RA-service-contract-management.asp.

For additional access to complimentary Service Management Research, please visit http://research.aberdeen.com/index.php/-service-management.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748.

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