Gainsight Glossary

What Is Recurring Revenue Model

Most businesses today provide service offerings that generate recurring revenue. The recent economic downturn and the customer preference for ‘pay-as-you-use’ services are the two important factors for the popularity of recurring revenue model. So what is recurring revenue model?

Recurring revenue model is a business model where the revenue is predictable, stable and likely to continue in the future. Gainsight knows that businesses prefer service offerings that involve less risk but maximum revenue predictability. Since in the subscription based model revenue realization takes place over the lifetime of the customer, Gainsight helps SaaS companies stabilize and maintain their recurring revenue streams by reducing customer churn and increasing customer retention. Its customer success management solution helps companies:

  • Control retention and identify up sell opportunities
  • Identify customers who are on the verge of switching loyalties
  • Build productive customer relationships and convince customers to stay
  • Analyze customer interactions to understand customer preferences and expectations
  • Trace metrics to measure performance

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