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Nov 24, 2021Join Gotransverse and MGI on Thursday, December 2, for a webinar addressing how revenue leakage happens — and how to stop it.
A 100-million-dollar company is at risk of losing up to $5 million per year to revenue leakage. For a billion-dollar company, that loss climbs to $50 million. And smaller companies aren’t exempt, either. Research from MGI shows that 42 percent of companies experience revenue leakage, and EY guidance suggests that “Every company — regardless of size or sector — should assume a potential leak of 1 to 5 percent realized EBITDA.”
What Is Revenue Leakage?
Just what are we talking about, here? Revenue leakage is exactly what it sounds like: the slow, unintended, and often unnoticed loss of money from within a business. These losses don’t come from general planned or unplanned business expenses; rather, these are inadvertent losses due to small errors or gaps in billing processes that result in underpayments at the end of a transaction with a customer.
“Too often there is a gap between what you contract to deliver to a customer and the fees that are actually brought in the door,” says Andrew Dailey, managing director at MGI. “We typically see two things driving revenue leakage: billing complexity and an increase in sales volume. This is especially true with quote-to-cash since the relationship with the customer is dynamic, organic, and continually changing.”
Leakage of any kind is unpleasant, and for a business, revenue leakage is a particularly senseless way to jeopardize the bottom line. Fortunately, it isn’t inevitable. “When you are looking at 5% or more of your revenue being lost,” says Sean Daniel, chief financial officer at Gotransverse, fixing the problems that cause revenue leakage will yield a much better ROI than the investment required to add 5% to your bottom line.”
How to Stop Revenue Leakage for Good
At any time — and especially during periods like we’re in now, when margins are slimmer than ever and the economy is highly unpredictable — reclaiming up to 5 percent of revenue is just smart business acumen. That is why Gotransverse and MGI Research are partnering to present a free webinar entitled, “The Elephant NOT on the Bill – Addressing Revenue Leakage.” We’ll take a deep dive into the prevalence of revenue leakage in all businesses as well as its causes and, most importantly, solutions.
During the presentation, Sean Daniel, chief financial officer, and Brian Reid, vice president of sales for Gotransverse, will be discussing ways to recognize and reduce revenue leakage with Andrew Dailey, Managing Director of MGI. During the webinar participants will learn:
- How to add 3 to 5 percent — or more — to your top line without adding products or increasing sales
- The multiple causes of revenue leakage
- Successful strategies to reduce revenue leakage and increase profits
- How addressing revenue leakage can improve customer experience, increase customer satisfaction, and improve competitive differentiation
As business models get more complicated and customer volumes increase, the process of tracking, billing, and collecting payment for customer purchases becomes more and more arduous. The risk of revenue leakage increases, and without the right systems in place, that slow drip is liable to turn into a steady flow of profits heading right out the door.
To learn to fix that leak for good, join Gotransverse and MGI on Thursday, December 2nd at 10 am CT/11 am ET for our free webinar: The Elephant NOT on the Bill – Addressing Revenue Leakage. We look forward to seeing you there!