Demand Rating™ Uncovers Revenue Opportunities
Why Behavioral Analytics?

Increasing your recurring revenues 10-15% is a great reason to start.

In today's all-you-can-eat subscription world, understanding demand is not as simple as it once was. Demand is not discovered through the point-of-sale analytics of yesterday. The "variability" and "over time" nature of customer engagement that is intrinsic to a recurring-revenue business decouples purchase from fulfillment. Prior to this separation, customer demand and the health of the recurring revenue were understood through the analysis of purchase behavior.

Many recurring revenue businesses act like nothing's changed and still use traditional methods, despite the rich behavioral information available from the usage data in their systems, which they ignore. They act more like a sleepy magazine company who upon customer order delivers twelve standard magazines to a door step over the year (in the behavioral analytics world, we call this providing 12 months of access). There's no ability for the magazine company to know whether the product delivered was read cover-to-cover or tossed in the garbage; read by four people or one; was taken on vacation or used for work - any of which would have provided them insight about demand to increase the value of the magazine to their customers.

Today — all of these things are more knowable and quantifiable through engagement metrics — through Demand Rating™. The Demand Rating metric is a ratio of consumption vs. cost (i.e., dollars, number of licenses, etc.) that provides a comparable measure of the customers' engagement with a product.

Demand Rating is an approach that changes everything. When you reduce demand to a quantifiable number a world of possibilities come into play. Suddenly, demand can be understood over time, and it can be understood in comparison to other specific customers, to segments of customers and across product lines. High demand ratings are good and low ratings are bad, and the rating implicitly incorporates sales risk and opportunity into the equation. Demand Rating enables customers to be averaged, ranked and compared. Instead of relying upon the intuition of account managers as an indicator of customer engagement, Demand Rating uses analytics.

Demand Rating is a new behavioral analytics metric that reconnects purchase data with usage data — the fundamental requirement for quantifying demand. It enables organizations to quantify releative demand between customers, and helps them identify actionable behavioral patterns to prevent churn, capture up-sell, and optimize cross-sell opportunities. Simply put, it enables organizations to increase recurring revenue 10-15% by answering the critical question: "Where is the actionable customer demand?"