Customer Retention Strategies: 5 Steps to Winning and Keeping Customers for Life
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Transcript of Customer Retention Strategies: 5 Steps to Winning and Keeping Customers for Life
SalesChannel Europe ©2016 All rights reserved
Thinking at 3 Time Horizons
Closing Current Opportunities:• Winning Deals• Pitching to Win• Closing Building Tomorrow’s
Business:• Industry trends• Industry competitive
challenges• Collaborative strategy
Building the Pipeline:• Solutions to Customer
business challenges• Value Propositions• Account Sales Plan
Horizon 10 - 6 months
Horizon 26 - 12 months
Horizon 312 - 36 months
SalesChannel Europe ©2016 All rights reserved
3 Phases of the Customer Life Cycle
PHASE II
NeedsCost
ProofRisk
Needs
Price
Proof
Risk
Design-in Prototyping ProductionLE
VEL
OF
CO
NC
ERN
Production Availability
TIME
PHASE I PHASE III
Customers are defecting to other suppliers2
Unable to monetize business opportunity over full customer life cycle3Cost/effort to win back lost customers is extremely high/prohibitively expensive4
5Cost/effort of winning new customers is 10-15 X higher than winning new business from existing customers
Unable to keep existing customers1
Mindset Matters Most1
Sell Business Outcomes not Technology2
Where are you on the Partner Sales Maturity Model?3
How and when to communicate Bad News4
Focus on your Customer’s Long-term Success5
“Attitude is a choice, and its available to all.”
Its all about Attitude
- Seth Godin
“What actually separates winners from losers isn’t
talent, its attitude.”
Who is your Customer?
Sell to Sell thru(Customer) (Customer = Partner)
=?X
Transactional Relational• Short-term• One shot focused
• Medium to long-term• Repeat business focused
SalesChannel Europe ©2016 All rights reserved
Products and Services Customer Needs Customer Value and ResultsBasis of Valueto Buyer
Products and services that meet needs
Basis of Valueto Buyer
Clarification of needs
Basis of Valueto Buyer
Business insights and advice
A range of Options A network of resources
Follow-up to ensure satisfaction
A mutually beneficial, long-term partnership
Sales Beliefsand Behaviours
Achieves product match
Sales Beliefsand Behaviours
Builds customer satisfaction and relationships
Sales Beliefsand Behaviours
Creates value throughout customer organisation
Believes in features and benefits
Believes in solutions Believes in business partnership
Presents and closes Listens, explores, suggests options and proposes
Researches, anticipates, advocates and orchestrates
Supplier Advisor Partner
Selling Focus
The New Sales Mindset
SalesChannel Europe ©2016 All rights reserved
Mindset Shift
Sales Engagement Goals
Mindset Shift
Move from Move to
Seek to understand the big picture Linear thinking Systemic viewpoint
Seek to understand the underlying behaviour Fixating on an event Observing patterns and
structures
Seek systemic change Short-term fixes Long-term initiatives
Seek to surface limiting beliefs Jumping to conclusions Suspending judgment
Seek to evolve a shared vision
Boundaries around beliefs A borderless mindset
“Doing exactly the same thing over and over again, but
expecting a different result.”- Albert Einstein
Definition of insanity
Mindset Matters Most1
Sell Business Outcomes not Technology2
Where are you on the Partner Sales Maturity Model?3
How and when to communicate Bad News4
Focus on your Customer’s Long-term Success5
Sales Transformation = Selling Business Outcomes
OLD NEWThe IT Buyer The Business BuyerSelling into CapEx Budgets Selling into OpEx BudgetsTechnical Expertise Business ExpertiseGeographic Sales Territories Vertical Industry TerritoriesSelling Features Selling ResultsFixed-Price Contracts Outcome-Based ContractsDemonstrating Features Business Process DiscussionsYour Complexity and Underlying Architecture
Your Consumption Model and Service Capability
Maintenance Contracts "Apps Mindset"Face2Face Sales Skills Social Media Knowledge
Source: Consumption Economics: The New Rules of Tech by J. B. Wood, Todd Hewlin and Thomas Lah, 2011
SalesChannel Europe ©2016 All rights reserved 66
Selling Business Outcomes
• Increased revenues or profitability• Faster time to market• Decreased costs• Improved operational efficiency• Revitalizing the organization• Enhancing customer loyalty• Increased market share• Decreased employee turnover• Improved customer retention levels• Increased competitive differentiation• Faster response time• Decreased operational expenses
• Increased sales per customer• Improved asset utilization• Faster collections• Reduced cost of goods sold• Minimized risk• Additional revenue streams• Improved time-to-profitability• Increased billable hours• Reduced cycle time• Increased inventory turns• Faster sales cycles• Reduced direct labour costs
“Don't wish it were easier;wish you were better.
- Jim Rohn
Don't wish for less problems;wish for more skills.
Don't wish for less challenges;wish for more wisdom.”
“Don't wish it were easier;wish you were better.
- Jim Rohn
Don't wish for less problems;wish for more skills.
Don't wish for less challenges;wish for more wisdom.”
Mindset Matters Most1
Sell Business Outcomes not Technology2
Where are you on the Partner Sales Maturity Model?3
How and when to communicate Bad News4
Focus on your Customer’s Long-term Success5
SalesChannel Europe ©2016 All rights reserved
Stages of Sales Proficiency
To beconsidered
Product
Casual
Productoptions
To makea sale
Customer
Trust
Applicationsolutions
Repeatbusiness
Competition
Mutualistic
Businessissues
To dominatean account
Customer’smarketSymbiotic
Strategicdirection
EmergingSalesperson
SalespersonCompetitiveSalesperson
CompetitiveSales Consultant
Stage I Stage II Stage III Stage IV
Intent
Focus
Relationship
Value
Dimension of Knowledge
Dimension of Relationship
Dimension of Partnership
1
2
3
Partner Sales Maturity
Dimension ofKnowledge
Dimension ofRelationship
Dimension ofPartnership
Top 3 customers Business development strategy Prospects introduced
Top 3 suppliers Supply chain challenges Alternative suppliers introduced
Top 3 competitors Activity to tackle competitive threats
Suggestions made fordifferentiation
Top 3 staff members Key vacancies/talent gaps Candidates/HR solutions introduced
Top 3 business issues Value of each business issue
Active assistance with 1+ issues
Forecast/vision/plan for next 3 years
Visibility of functional plans (where they exist)
asked for input on strategic and operational business plans
1 2 3
Mindset Matters Most1
Sell Business Outcomes not Technology2
Where are you on the Partner Sales Maturity Model?3
How and when to communicate Bad News4
Focus on your Customer’s Long-term Success5
White Questions
Green Questions
Black Questions
Red Questions
Current situationFacts, data & informationwhite snow: pure, cold hard facts
Desired situationFuture stateGrass, trees, growth, can become
ObstaclesImportant, powerfulDark, night time, can’t see in the dark. Turn on the light to see what stands between current situation and desired situation.
FeelingsFire, explosive color, highly emotional-ve Red: “If Stan doesn’t do something he won’t make his quota. He really needs some help. Stan needs to talk to you.”+ve Red: “If Stan overachieves this year, he will probably be promoted to VP Sales
Asking Questions in Colour
Tell
Ask
Problem Solution
Conversation Directional Compass
• Describing the problem• Problem focused
• Asking questions about the problem
• Problem focused
• Asking questions about possible solutions
• Solution focused
• Talking about the solution• Describing possible solutions
Mindset Matters Most1
Sell Business Outcomes not Technology2
Where are you on the Partner Sales Maturity Model?3
How and when to communicate Bad News4
Focus on your Customer’s Long-term Success5
What did sales winners do differently?* 1. Educated me with new ideas or perspectives2. Collaborated with me3. Persuaded me we would achieve results4. Listened to me5. Understood my needs6. Helped me avoid potential pitfalls7. Crafted a compelling solution8. Depicted purchasing process accurately9. Connected with me personally10.Overall value from the company is superior to others
*What Sales Winners Do Differently, RAIN Group, 2013
SalesChannel Europe ©2016 All rights reserved
The 5Rs of Retention1. Reality: confront the real situation and the consequential issues openly,
objectively and honestly. Remain rational, avoid emotional and judgmental thinking. Stay focused on the Client's desired business outcomes. Don't become part of the problem.
2. Review: where are we now, where do we want to be? What is the gap? What can we do to close the gap?
3. Reframe: describe new situation, the alternative future(s). Focus on actions that will minimize the negative consequences of the gap, and maximise the positive.
4. Reset: reset expectations by "selling" a new vision of the future. Describe the best possible future available given the changed situation.
5. Recommit: restate your personal commitment to deliver the best possible outcome for the customer based on the current situation. Describe the personal actions that you will take to: i) minimize the negative consequences and ii) maximize the positive outcomes possible given the changed situation.
1. Mindset Matters Most
2. Sell Business Outcomes not Technology
3. Where are you on the Partner Sales Maturity Model?
4. How and when to communicate Bad News
5. Focus on your Customer’s Long-term Success
Quick Review:
Customers want Outcomes
Knowledge -> Relationship -> Partnership
As soon as possible, followed by Advocacy and Inquiry
Add Value through sharing Business Insights
Competing to remain relevant to tomorrow’s customers
Become a Business Partner
1. Challenge their clients2. Inspire and educate3. Share their insights4. Think long-term relationships5. Take personal responsibility for the
Customer Life Cycle End2EndWin, Retain & Develop New Business
Create Long-term Profitable Growth
www.flickr.com/photos/horacio/3781750
David R EdniePresident & CEO
SalesChannel EuropePh: +33 676 60 09 25 (FRA)
Email: [email protected]: www.saleschannel-europe.com