Mid-sized software company reduces revenue leakage, unlocking $1.5M in additional annual revenue
3 min read
Picture this…
You’re NXO Solutions, a dynamic software firm specializing in cloud-based supply chain management. Serving over 500 clients across three subsidiaries – Nu, Xi, and Omicron – you face a worrying trend: revenue projections aren’t matching your actual earnings. In 2023, NXO did ~$73M in revenue but projected ~$2.5M more than that.
Your team believes revenue leakage may be the culprit, especially given the recent acquisition of Omicron, which involved a complex ERP integration, but aren’t exactly sure what the root cause is.
You turn to Chassi.
Our approach identifies and quantifies the sources of revenue leakage using sophisticated data integration across your ERP and CRM systems. Specifically, we:
- Install and Integrate: Deploy Chassi to seamlessly integrate NetSuite ERP and Salesforce CRM data, establishing a single source of truth for comprehensive operational analysis.
- Quantify and Map Revenue Leakage: Chassi was able to quantify the amount of annual leaked revenue by subsidiary and assign it to one of the following root causes: “Invoice Never Sent,” “Invoice Incorrect,” “Inaccurate Usage Tracking,” and “Customer Not Paid (> 3 mo.).”
- Analyze Results: Two large buckets of leaked revenue were uncovered. One was related to the recent acquisition, but the other was not – “You don’t know what you don’t know.”
- The “Invoice Incorrect” root cause was abnormally large for Omicron. As a result of the recent acquisition, pricing for specific customer groups was not accurately being transferred from Salesforce to NetSuite, resulting in underpricing and thus leaked revenue within the Omicron subsidiary – recapturing 90% of this leaked revenue would increase revenue by ~$610K.
- In the Nu subsidiary, “Invoice Never Sent” was abnormally large. In some instances, employees were using an outdated NetSuite saved search, which resulted in certain unsent invoices not showing up. This equated to ~$915K worth of invoices never sent to the customer. NXO believed proper training would allow them to recapture 100% of this lost revenue.
- Implement and Optimize: You work with your leadership team to develop a strategic plan to deliver on the improvements associated with the two primary sources of revenue leakage. This lays the groundwork to recapture a total of $1.5M annually—boosting 2023 revenue by an additional 2%.
- Continuous Monitoring: Use Chassi to systematically track improvements and ensure ongoing revenue optimization, fostering a culture of proactive financial management.
Your revenue is protected.
Leverage Chassi’s powerful analytics to strategically close revenue gaps, ensuring each subsidiary operates with financial precision. With real-time insights, NXO Solutions is now equipped to continuously sustain and enhance financial performance.
Key results:
- Achieved $1.5M annual revenue recovery through targeted actions.
- Rectified invoicing errors and prioritized accurate data integration.
- Established a robust, automated monitoring system for ongoing improvement and decision-making.
Chassi’s platform can dive into other critical areas, offering even more opportunities to enhance efficiency and drive growth:
- Working Capital
- Recurring Revenue
- Integrations & Performance
- Sales Efficiency
Now, imagine the possibilities for your business when you extend Chassi’s powerful insights across all these areas. What will your business achieve when you start now?
Ready to see these results for yourself? Let’s start with a conversation.
Schedule your personalized demo today: