Sales Growth

Recurring revenue as a valuation-driver

Businesses with a high repeat client base tend to have higher valuations.

As the entrepreneur is contemplating a sale, the measurement – and implementation of a strategy to maximize the value of repeat clients is therefore an important activity prior to finalizing a valuation and going to market.

Depending on the type of business, a quick-to-market strategy is to consider the company’s customers as ‘total consumers’, and develop a strategy to provide augmented (but aligned) value across a variety of domains that customers would find helpful.

This strategy gives the business a way to provide value that reaches beyond the traditional limits of the business and sector, and bump-up the valuation with a recurring-revenue program that provides value to customers and short-term growth opportunities and insights to build loyalty, referrals, and cross-sell revenue.

Our Stratum Five recurring revenue team has the expertise and processes to help you understand the degree to which your customers:

  • Exhibit brand loyalty
  • Which are most welcome to upsell and cross-sell messaging
  • Which are most engaged with your organization, and most open to going deeper

The process is anchored by Accelerants – products and services that your customers need, want, and in many cases, are already buying elsewhere.

Accelerants can take a variety of forms: general, product aligned (eg; homeowner focus), or aligned with the interests of specific target demographics.

We also provide turn-key accelerants, ready for custom-branding and quick deployment, including:

  • Extra Mile Protection Plan – a hybrid AD&D and roadside assistance product that provides sponsoring partners with a new revenue channel that comes with its own marketing support, licensed underwriting, claims, industry-standard roadside support, and 24/7 bi-lingual helpline

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Let’s talk about a plan to engage your market: