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New Offering
Overall Revenue

Let's calculate a plausible extra revenue for a vendor's solution that has 1,000 customers each paying an average of $50k annually. Thus, the solution represents a $50M revenue stream.

 

We estimate an extra yearly revenue of $9.5M for this vendor who works with the OnlyBoth Benchmarking Engine. See the individual revenue contributions on the rest of this page.

 

 

OK, so it's not $10M. Wait until next year.

 

N = your # of customers

A = average annual revenue for your solution per customer

P = penetration: the % of customers who sign up for benchmarking

S = surcharge: the benchmarking fee as % of average revenue

 

Let's say that N = 1,000 customers, A = $50k average annual revenue, penetration P = 50%, and surcharge S = 10%. The extra revenue due to the new offering is N x A x P x S.

 

Vendor sees extra revenue of $2.5M.

T = % of customers you retain who otherwise would have strayed.

 

Let's say T = 2%. As before, N = 1,000 customers and A = $50k. The extra revenue due to the vendor's enhanced customer retention is N x A x T.

 

Vendor sees extra revenue of $1M.

 

D = % of new customers due to your newly-differentiated solution.

 

Let's say D = 10%. As before, N = 1,000 customers and A = $50k. The extra revenue due to the vendor's enhanced differentiation in the marketplace is N x A x D.

 

Vendor sees extra revenue of $5M.

Customer Retention
Solution Differentiation

Revenue Impact Calculator

 

The OnlyBoth Benchmarking Engine (1) further differentiates your solutions by enabling a unique information service; (2) increases your revenue by selling that service and uncovering new ways to help your customers; and (3) improves customer retention by deepening your relationships.

 

Let's estimate the yearly revenue impact for a representative, medium-sized vendor.

 
Follow-on Consulting
Thought Leadership

C = average revenue per follow-on consulting engagement.

Q = % of customers that signed up for benchmarking who follow up by engaging your consulting services to help them improve.

 

Let's say C = $10k and Q = 20%. As before, N = 1,000 customers and P = 50%. The extra revenue due to the vendor's consulting services is N x P x Q x C.

 

Vendor sees extra revenue of $1M.

 

The financial value of thought leadership is inestimable. Therefore we won't estimate it. Consider it a freebie.

 

Vendor sees extra revenue due to thought leadership of $0. (yeah, right)