Zilliant publishes its second annual B2B Global Benchmark Report, the most comprehensive AI-driven global study of B2B transaction data ever performed
Zilliant, a leading SaaS software company, that uses artificial intelligence (AI) to turn B2B data into actionable intelligence that accelerates profitable growth, released its 2019 Global B2B Benchmark study on B2B industrial manufacturers, distributors and service organizations. The findings from the study show that there are significant hidden sources of additional revenue and profit margin, caused by pricing and sales complexities, that companies could uncover and recuperate by applying AI-driven diagnostics to customer transaction data.
The study conducted by the Zilliant data diagnostic team looked at a vast amount of data that covered four years of transaction data from 6.3 million customers worldwide, representing over 1.4 Billion transactions analyzed, worth over $181 Billion and spanning 15 currencies.
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By applying a unique AI-driven approach to this transaction data, the Zilliant team was able to uncover four areas that are the primary drivers of revenue and margin loss for industrial B2B companies. These can be used as benchmarks in assessing performance. Two of the four areas are customer churn and cross-sell which are indicators of sales complexity and consequential revenue loss. The other two areas, inconsistent pricing and routine pricing, are indicators of pricing complexity and related profit margin leakage.
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The key findings from this study showed that overall, manufacturers, distributors, and service companies lose between 7.7% to 30.9% in revenue from customer churn and lost cross-sell opportunities. Profit margin leakage from pricing inconsistencies and routine pricing ranges from 1.9% to 13.4%. For a $1 Billion company, the implications are significant- by applying the appropriate analytics techniques, they could uncover the source of the leakage and recover up to $300 Million of revenue or $134 Million in profit every year.
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“One of the biggest worries for CEOs is that they may be leaving revenue and profit on the table. Often times this loss is not captured and they don’t know how to identify it. We created this report to provide benchmarks for all businesses to recognize areas of opportunity to lift revenue and profit margins,” said Greg Peters, Zilliant CEO. “Without the right technology, the loss in revenue and profit margin leakage unfortunately, still remains unaddressed. With AI-enabled technologies, Companies now have the ability to identify areas of revenue and profit margin loss and take necessary actions to recover these hidden losses.”
SOURCE Zilliant