Case Study / Technology
Migrating to a SaaS model,
while improving processes
and channel partnerships
A leading cloud services company started to migrate from perpetual licensing to a subscription (SaaS) model and experienced various challenges, particularly channel sales. Churn rates increased dramatically, but it could not identify the churn risk indicators. The client then recognized that channel partners were skirting the migration effort by ending perpetual contracts, which showed up as churn in reports, and creating net new subscription contracts to increase their margins.
Meanwhile, the company’s CRM system and data weren’t set up to handle the shift efficiently, leading to a backlog of 6,000+ support cases related to moving from perpetual licenses to subscriptions. The challenges multiplied as the company did not have defined processes to support the migration and address customers’ concerns, such as security and extra effort to implement the software in a complex environment. Without a strong renewal management strategy, it was only converting 2-3 percent of its customer base each month to its subscription offerings.
Concentrix created a 10-person team in Kuala Lumpur to support the client’s migration effort, move the pipeline from perpetual licensing to subscription services, and resolve the 6,000+ support case backlog in one month. We added a second team of 20 people to clean up the CRM data by comparing each contract between the old and the new systems and verifying details at the contact, contract, and account levels. We also deployed a team of three ops specialists to work on the internal ticketing system by assigning, checking, and resolving partner requests quickly and accurately.
Two partner specialists were involved—one to focus on process design and internal process optimization, and the other to work with the company’s largest channel clients to standardize processes and connect the dots between the perpetual licensing and SaaS models. These partner specialists designed, implemented, and managed internal and external workflows for various business units. This included training new hires, answering questions about critical scenarios, assisting the client’s internal teams, and resolving support questions.
As part of our renewal management efforts, we modified the channel partner policy to maintain the same margin for partners when migrating customers to a subscription contract. We also created a partner stack ranking system and conducted quarterly business reviews (QBRs) with underperforming channel partners.
The renewals advisors, partner specialist, client partner, account manager, and partner’s representatives triaged the relationship and developed deep insights into the partner community.
We implemented a health check motion to pave the way for renewal management conversations. The process allowed our advisors to either set the stage for cross-selling or upselling to satisfied customers, or identify churn risks and pass the account to the internal customer success management team to ensure that the customers are getting value from the product. We also ensured a closed feedback loop between the monthly health checks and a voice of the customer / voice of the partner program.
Recently, Concentrix implemented a team of 20 global business development advisors to help the client identify and prep perpetual customers with legacy products to migrate to a blended subscription model. Our advisors reach out to prospective customers, identify their needs, and qualify the customer to pass to the client’s internal account managers.
Based on the feedback we received, our renewal management team created and initiated action plans to combat competition, improve internal processes, and overall customer and partner satisfaction. Results included:
- 85 percent on-time renewal rate for the subscription/SaaS business
- 92 percent on-time renewal rate for the perpetual business
- 80 percent reduction in churn via health checks
- 15 percent monthly conversion from perpetual license to the subscription model—a 500 percent improvement
- 6,000+ support cases resolved in one month
- 56 percent of wrongly created contracts corrected