Loyal customers are your most precious asset. As more and more industries move to a subscription-based revenue model, the customer renewal has become equally important if not more important than the initial sale. Is your organization equipped to manage and maximize this business model, referred to as the ‘new services economy’? Do you have the business agility and visibility to ensure an exceptional experience throughout the customer lifecycle?
Below are some tips along with a strategic plan to help you keep your customers loyal and renewed.
Collaboration across departments
For companies focused on building recurring revenue over the long term, the initial sales cycle is only the start of the customer relationship. Sales and service delivery teams must collaborate closely to offer a solution that meets customer objectives. Think of every sale and customer experience as a team effort.
Rapid business value recognition
Onboarding must happen smoothly and swiftly so that customers quickly see value from your solution. That means your professional services team and/or network of implementation partners play a pivotal role in enabling customer success.
Flexible financial management
The appropriate financial management system must be selected to support flexible business models and automate billing, revenue recognition, and audits. Tracking different revenue streams in different systems (e.g. managing subscriptions in one system while tracking consultant time elsewhere) slows down processes, increases errors in billing preparation, and leads to redundant bills (and unhappy customers).
A 360-degree customer view
See your customer in full color—from lead to renewal—by tracking core metrics around retention rates, expansion, and advocacy. Give your organization a comprehensive view of all customer activity – every conversation, every transaction, every request – so any time a customer has a question, anyone from any department can answer.
Talent supports long-lasting success
To support the above, businesses must build and invest in an engaged and skilled team to deliver long-lasting business partnerships and customer success. Leverage modern ERP systems that support self-service, a master customer record, and company-wide collaboration to help drive customer happiness and renewed contracts.
Want to learn more?
Dive deeper into each one of the tips above and download the Welcome to the New Services Economy: How to Thrive in the Era of Subscription-Based Business guide. It will provide detailed strategies for how your business can adapt and succeed, and tangible steps for business units from sales and services to finance and HR.