Landing new customers will always be an important part of growing your business, but what happens after they've been onboarded? Tech companies invest a great deal of time and money in sales and marketing initiatives to capture net new business, but often overlook the chance to take advantage of revenue opportunities from within their existing customer base. This infographic takes a look at how investing in expand selling capabilities can unlock lower-cost accelerated revenue growth from existing customers.
As more traditional businesses migrate to the cloud, they are quickly discovering what companies who were “born-in-the-cloud" have known for a while: you have to manage customer engagement to drive adoption, retention, and renewal. It's these three elements that led to the inception and growth of the customer success concept, but what exactly is customer success and what role can other service lines play in its execution? At TSIA, this is a question that is top of mind for many of our members. To provide some insight on how customer success relates to my specific area of research, education services, I'd like to provide an overview of the primary responsibilities of customer success and 7 ways education services can contribute to these activities.
Customer health scores are a great way to get an indicator of potential customer churn. While every company calculates theirs differently, the important thing is to have a health score methodology that helps your company align your customer success processes with the outcomes you're trying to drive with your customer base. However, if you're not using a health score calculation method that uses predictive analytics, you're falling behind many customer success pacesetters. In this post, I'm going to walk you through a 3-step approach to calculating a customer health score that aligns with your customer success organization's charter using predictive analytics.
A refrain I often hear from many of our Expand Selling (ExS) discipline members is that the collaboration between the services and sales functions leaves a bit to be desired in the context of expand selling. TSIA research shows that only 33% of technology companies consider the level of collaboration between sales and services within their organization as “high”, and that's not even in the context of how services helps sales with expand selling!
Suffice it to say, there is certainly much room for improvement in how the sales and non-sales functions like services and customer success work together to systematically drive revenue growth with your existing customers. Therefore, my mission for this post is to explain why sales leaders should actively embrace services and customer success as expand selling partners. The reason is simple: they can help your team achieve quota.
Recently, an article I wrote was featured on MarTech Advisor, a marketing technology publication, called, "Why Marketing Technology Platforms Need New Innovations to Drive Revenue and Growth," about how Expand Selling and TSIA's LAER model applies to the role of marketing. In this post, I explain how important it is for marketers to focus on finding the right technology innovations that will enable them to better drive ROI for their business and cost-effectively re-ignite revenue growth. Here's an excerpt from that article:
Expand selling requires many functions, including sales and services, to work together to accelerate revenue growth with existing customers. However, as a sales or services leader, do you know what it costs for your respective teams to generate every new dollar of revenue growth? Based on our research, TSIA observes that only a fraction do, which has a profound impact on the ability to know what "good" looks like when it comes to effectively driving expand selling initiatives.
As technology suppliers, once we’ve landed the customer, our next goal is to get them up and running on our platform and successfully using our solution. With today’s changing business models, they may not be buying an asset up front, but instead might only be paying a little through a subscription, or a “freemium” model where they haven’t paid anything at all yet and are still in the “try before you buy” phase of their purchasing journey. Still, our goal remains the same: we need to get them to adopt and to actually use the technology. Why? We want to get them to expand their spending with us and ultimately get them to renew their contracts.
At TSIA, we refer to this process as the LAER Model: Land, Adopt, Expand, Renew. So, how do we get those customers to that first critical milestone of adoption that unlocks expansion and renewal? To illustrate that, we need to first talk about three types of customers we all recognize, originally introduced by Thomas Lah, TSIA's executive director, in his keynote presentation, "The Who, What, Why and How of Driving Adoption and Outcomes".
In order to grow your customers successfully, you need to make sure they’re able to find value with your solution by achieving their desired business outcomes. To properly guide your customers down the right path to success, you’ll first need to gain a deeper understanding of their goals, but where do you start? In his keynote presentation at our upcoming TSW 2015 Service Transformations conference, “Outcome Engineering”, TSIA’s executive director, Thomas Lah, will share how outcome engineering drives revenue growth. Take a look at this SlideShare for a sneak preview of what you can learn from this informative presentation!
Copyright 2017 by TSIA. All rights reserved. Reproduction in whole or in part without permission is prohibited. Inside Technology Services is an editorial blog published by TSIA, with contributing authors submitting regular editorial content. Opinions expressed by contributors are not necessarily those of TSIA. Although carefully verified, data are not guaranteed as to accuracy or completeness. TSIA cannot be held responsible for any direct or incidental loss by applying any of the information in this publication. The third-party trademarks appearing within are the property of their respective owners. All other trademarks appearing herein are the property of TSIA or its affiliates.