Let’s face it, no business, particularly a technology company, can grow with a transaction mentality.  If possible, the key is to create a recurring revenue business model to ensure ongoing income, which in turn allows you to keep investing in the product and the service you deliver behind it.

The first step is to change your attitude. Each customer needs to be seen as a long- term opportunity, not a single purchase order. This is a cultural shift that is definitely more easily said than done. There needs to be a new process in place, beginning with the cultivation of the customer. It’s critical to fully understand their needs, both short term and long term, so that you can deliver value. The initial needs assessment takes on a new dimension when you start the conversation with the intention to be their partner years from now.

For many organizations, this process also means understanding best practices for quoting, invoicing, perhaps even financing with a different customer-focused lens.

One way to facilitate your process refocus is to leverage the manufacturer’s expertise and even funding sources. Many manufacturers offer development funds to help finance promotions, education materials such as white papers or webinars, even advertising. This can help raise your profile while capitalizing on the brand equity of the manufacturer. (Maybe insert an example here? Can you help Ryan?)

Another way to support the recurring revenue model is to offer financing you’re your customers’ purchases. This can reduce the barrier to entry for smaller customers who have a potential to become larger ones in the future. There are risks associated with financing but the convenience of the service can add to your revenue as well.

Overall it’s important to not lose sight of the end game when transitioning to a recurring revenue model, and that is to continually deliver value for your customers. As you measure your progress in growing your revenue, consider the approval ratings your customers give you as a relevant benchmark in your success. The more satisfied your customers are with the service you provide the more you can almost guarantee your recurring revenue model will be successful.