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.
© 2009 AberdeenGroup, Inc., a Harte-Hanks Company
451 D Street, Suite 710
Boston, Massachusetts 02210-1928
Telephone: (617)854-5200
Fax: (617) 723-7897
www.aberdeen.com
Contact Information: Media Contact:
Kimberly Madden
Research Analyst
Aberdeen Harte-Hanks
Kimberly.madden@aberdeen.com
William Pollock
VP & Principal Analyst
Aberdeen Harte-Hanks
Bill.pollock@aberdeen.com
(617) 854-5211