In late 2020 we started to offer a standard 3-month break clause in all new client contracts.
Happily we do so with great confidence as no clients have yet used it – indeed (at the time of writing) we maintain our zero-client-churn clean sheet (since Woodseer’s launch in Jan 2017).
Many clients want to start ingesting our forecast data as soon as possible, and there can be frustration all over when this is held up by extended data trialling or contracting/procurement.
So we did this specifically to derisk (somewhat) the decision to go forward with contracting our dividend forecast data.
How it works:
- All new annual dividend forecast data contracts include a 3 month break clause
- At start we invoice each new client only for the first 3 months
- After the first quarter, assuming they want to continue (and to date they all do), we invoice the remaining 9 months of the year
- No ifs and no buts!
Now obviously there is still some risk here, but it is reduced.
For us it’s a trade-off: we take on more risk and our new client takes less.
And we’re happy to take this deal every day of the week – 100% of our clients buy our data ongoing.
We believe this has achieved its goal in terms of reducing the consideration time in going forward with new clients. Get in touch if you’d like to learn more.