Mastering the Recurring Revenue Model

What if you could no longer drive revenue growth through new business sales; how would you continue to drive performance?

Recurring revenue aims to maximise revenue from an established and loyal customer base. It is a business model that relies on repeat purchase by customers. From the customer's perspective, buying regularly and for a long time usually means there’s a long-term problem to solve. If you’re their supplier of choice, it means they trust you as the solution.

Benefits of Recurring Revenue

- A loyal customer base
- Higher average customer lifetime value (LTV) of their customers
- Stable cash flow
- Stable cash flow

Driving recurring revenue leads to increased shareholder value by commanding a higher exit value in the marketplace.

Four Recurring Revenue Models

Auto-Renewal Subscriptions

An Opt-Out service.

Service Retainers

Recurring retainers for repeatable service.

Hard Contracts

Lock in's and early release penalties.

Sunk Money

Initial investments causing high switching costs.

McK&P’s Recurring Revenue Model

Many companies underutilise the power of recurring revenue. McK&P’s Recurring Revenue Journey allows clients to unlock the power of maintainable revenue and increasing shareholder value.

Data Collection and Manipulation

The key to utilising the benefits of recurring revenue is collecting the correct customer data and manipulating feedback to grow recurring revenue and strengthening your overall value proposition. Recurring Revenue will allow you to work out your average customer retention length, your sweet spot of demographic and the price point that provides maximum revenue.