Retaining valuable customers is a necessity
In one of her hit songs, Adele famously sings the words “Sometimes it lasts in love, but sometimes it hurts instead”.
Minus the sentimental value, this also applies to the world of business. It is a simple reality that customers come and go and sometimes there is nothing you can do about it.
On the other hand, sometimes it lasts. Sometimes you can retain a customer for a long period of time and build a fruitful, trusting relationship that enables both of you to be more successful.
There has been some fascinating research done in recent years to highlight just how important it is to keep your customers happy.
Beyond the well-known Pareto principle that states 80% of a company’s revenue comes from 20% of its customers, Harvard Business School Professor, Sunil Gupta, has provided further evidence to show the importance of retaining customers that provide high levels of profitability.
Furthermore, Bain & Company have found that increasing customer retention rates by 5% increases profits by 25% to 95%, and it is widely agreed upon in the SaaS world that the cost of acquiring a new customer is anywhere from 5-25% more expensive than retaining an existing one.
Needless to say, making a concerted effort to retain your customers is just as, if not more important than acquiring new ones.
Execute account management processes flawlessly
Retaining customers, particularly high-value customers, is nothing short of essential for the growth of SaaS and other subscription-based companies, and to do so requires excellent account management.
That’s why we’ve gone ahead and created this set of checklists; to help you flawlessly execute various processes from conducting a thorough analysis of your competitors to the daunting task of preventing a valuable customer from churning.
Ever found yourself struggling with the sales-to-service handoff process or upselling? We’ve got those covered, too.
In this post, I’m going to provide a brief outline of each checklist and summarize why it’s a good idea to integrate them into your account management processes.