ServiceSource Acquires Predictive Analytics Company Scout Analytics
ServiceSource, a provider of recurring revenue management, has acquired Scout Analytics, a provider of predictive analytics for subscription businesses.
With more than $3.5 billion of recurring revenue under management, Scout Analytics extends ServiceSource's reach into new markets while increasing its footprint to now $14 billion under management across more than 200 customer engagements.
Scout from Scout Analytics analyzes customers' subscription usage, spending, and other behaviors. With Scout, ServiceSource expands its customer success management capabilities to include actionable analytics based on actual customer usage. This enhances the ServiceSource solution for subscription customers through insights that support streamlined onboarding and adoption, and increased revenues through targeted upsells and cross-sells. ServiceSource plans to significantly invest in Scout Analytics' business with additional R&D, sales, and customer support resources. ServiceSource will also incorporate Scout within its customer success management services for onboarding, adoption and retention. Finally, Scout Analytics customers can leverage ServiceSource’s Customer Success Management and Renewals Management software and services to increase customer retention and renewal rates.
Currently, Scout Analytics analyzes usage from more than 25 million subscription users on more than 400 million devices daily for customers across the SaaS, information services, and digital media industries. By expanding into these vertical industries, ServiceSource roughly doubles its addressable market to now more than $600 billion in recurring revenue opportunities. Scout Analytics’ customers include The Financial Times and Reed Elsevier, as well as joint ServiceSource and Scout Analytics customer Wolters Kluwer.
"With $14 billion under management, ServiceSource is powering the recurring revenue economy," said Mike Smerklo, chairman and CEO of ServiceSource, in a statement. "From working with seven of the top 10 SaaS companies, we know how difficult it is for customers to collect, analyze, and leverage their usage data. Our acquisition of Scout Analytics addresses this challenge. Scout Analytics significantly expands our reach into the fast-growing SaaS market, while creating new opportunities in B2B subscriptions for information services and digital media. And, with the addition of sophisticated predictive analytics, we can give companies the required top-to-bottom view of their customers' data to grow through recurring revenue."
"We are excited to join the ServiceSource family," said Mark Upson, president and CEO of Scout Analytics, in a statement. "Today, measuring customer return on investment through usage data enables companies to proactively create value for customers and build long-lasting relationships. The combination of Scout Analytics with ServiceSource will drive new levels of actionable insight that will help customer success, sales, marketing, finance, and product management teams to win customers for life."
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