Is your Business a Loyalty Magnet?

It’s not surprising the concept of customer retention has got business owners tied up in knots. We found out a few years ago that it costs five times more to acquire a new customer than it costs to retain an existing one.  This means it’s likely to be far more lucrative for your business to invest in customer service than it is your sales team.  With this in mind, is it time to look again at the post-sales service you offer your key customers?

Three reasons to invest:

Marathon is an ambassador of improving customer retention. We’ve therefore identified three reasons why it pays to invest in customer retention – and also include some ideas about what you can do to maximise it.

1. Converting a new customer to a key account customer is time consuming:

Just think of your sales funnel and the effort that goes into identifying, warming up and selling to a brand new customer. Now consider how easy it is to sell to a known customer, with whom you have had time to build up trust over a longer period of time. Turning new customers into long-term key customers is no easy task, which is why it pays to keep them close and earn their trust once they have jumped on board. 

  • What you can do about it:

IT channels are beginning to see the benefit in taking a more consultative approach to their affairs - through providing managed services for instance. Offering customers managed services, once they have purchased hardware or software from you gives you the chance to build up more insightful relationships. It will also help you migrate over to ‘outcome based selling’ – turning your company from a single time supplier into a valued long-term partner.  

2. Customers become more valuable the longer they stay with you:

The truth is, the longer a customer stays with us, the more valuable they become. So long as they receive a consistently high standard of service, they are likely to invest more with you – and recommend your services to others.  It’s therefore well worthwhile investing in the post-sales process, to make sure anyone who buys from you ends up coming back to you time and time again. 

  • What you can do about it:

Customers don’t expect the world-  they just want their expectations to be met. Use a CRM system to track and improve your customer’s journey and gain valuable insight into likely areas where customer satisfaction could be a problem, or an opportunity for you to sell more!  If you find your customer service is suffering due to under-resourcing or lack of expertise; then Marathon can help you pick up the slack, and provide the specialisms you are looking for. 

3. Customer churn could break your recurring revenue business model:

It may feel like a great day when a new customer signs up for a new XaaS product. However, it’ll be a complete false economy if the client fails to get take up from their teams, or struggles to see its worth after a while and then decides to part ways with it.  With successful businesses keeping monthly churn at 7% or below, you will need to keep a close eye on your customers, to make sure they are getting the most out of their investment. 

  • What you can do about it:

If you are losing your subscription based customers at a higher than expected rate, then you may have a price, UX, or product problem. Or you may just need to step-up your post-sales support.  We can help you provide the support your customers are looking for, by helping you embed and maximise the investment in the software they have bought from you - so they end up wondering how they ever got by without it.  

Strategy for longer-term success

Interestingly, the ‘five times more’ belief has actually been dispelled as a myth by the reputable research firm Ipsos. Despite much digging, there is nothing to back up the source or the science behind this popular philosophy.  Yet, with satisfied and loyal customers making up the backbone of many successful businesses, it’s fair to say that the person responsible for starting the rumour was definitely onto something. 

If you are ready to step up your customer service but feel a little unprepared, then give Marathon a call. Our pre and post-sales service packages will mean you can instantly start to forge stronger bonds and benefit from the repeat business that happy customers bring!

Call us on 020 8329 1000 

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About Us

Marathon Professional Services is your trusted IT solutions partner. We offer a range of services including Desktop Infrastructure Solutions and Virtualisation, and we act on a white-labelled basis as an extension of your business.