Protect and Lock In Your Major Customers, Win New Ones
About 5% of your revenues delivered in value by Year 3
A contract renewal puts years of revenue from a major customer back on the table, often against rivals offering lower prices. Your customer faces its own pressures on cost, resilience and emissions that a price cut alone does not solve. An INNOVO Corporate Venture gives both companies a shared, independently assured stream of value, which makes your relationship far harder to displace.
Faster, and far less capital, than the market
Leading customer-supplier partnerships have taken 32 to 42 months to start working and committed up to 2.5% of revenue up front, some every year. Your Corporate Venture delivers value from month 5, your quarterly value is modeled to exceed your fees from the third quarter, and up-front fees are about 0.06% of revenue for a $10 - $25B company, 0.04% for $25 - $100B and 0.01% for $100B+.
What you gain
- Protect your customers. INNOVO assumes a linked partnership cuts the annual chance of losing a major customer from 8% to 2%. By Year 3 this adds about 0.6% of your revenue to profit after all fees: about $10 of value for every $1 of fees.
- Win new customers. Linked Ventures help you acquire and lock in new multi-billion-dollar customers, with the first won in Year 2. By Year 3 they add about 4.6% to your revenue and about 0.9% of your revenue to profit after all fees: about $5 of margin for every $1 of fees.
- Share the partnership value. You receive half of the measured value of each partnership, across eleven value streams. By Year 3 it adds about 1.1% of your revenue to profit after all fees: about $3.30 for every $1 of fees.
- Launch joint new products. Revenue from each joint new product is split 50/50 between you and your partner.
From Scoping to a locked-in renewal
- Weeks 1 to 4, Scoping. You commission a Scoping Proposal that sets the baseline for the customer relationship and the timetable to renewal.
- By month 4, commitment. You pay the setup fee, INNOVO begins building your Corporate Venture and you introduce your customer.
- Your customer’s Venture. A linked Venture is formed alongside your customer, and the two agree baselines, joint projects and value-sharing terms.
- From month 5, renewal and results. The partnership is signed alongside the renewal, joint projects are financed externally and the value is independently assured.
What your customer gains
An equal share of the independently assured partnership value, joint projects financed without its own capital, and a stronger case to its own board for choosing you over a cheaper rival.
What you pay
Scoping fees and initial set-up fees are about 5% of the Venture’s costs for the first 3 years and about 1.3% of the value it expects to add in Year 3. Apart from technology search retainers and your half of the independent assurance fee, which you share with your partner, every later fee is paid from measured value created. Figures are modeled outcomes for a $10 - $25B Corporate Partner, not results achieved.
Choose the customer renewal to lead with, and book a 30-minute meeting with INNOVO: