Buckle up folks, because it looks like this wild economic ride is not over just yet. Like many industries, the tech sector is being hit hard, as we see more and more businesses making headlines about their brutal cost cutting exercises.
Profitability, protecting revenue and reducing cost is now more important than ever.
In a recent study by TSIA which surveyed Chief Revenue Officers and General Managers within the tech industry, several common emerging needs were identified by those interviewed. The following really stood out to me:
1. Optimizing revenue across the customer lifecycle
2. Growing revenue without hiring more salespeople or additional marketing spend
3. Leveraging data and analytics
4. Selling and delivering around business outcomes
5. Defining the role of sales/customer success/renewals staff
I must admit, I’d be very surprised if these are truly “emerging” needs. But, if your business is still in the early stages of achieving some of the above outcomes, I have outlined three focus areas that will allow you to reach these goals, all at once.
1. Lifecycle Strategy
For almost ten years, I have been an advocate for modernizing sales strategies and processes within the channel ecosystem, primarily around revenue optimization and operational efficiency. I had launched the LEEP program back in 2015 whilst at Distribution Central, (before LAER was even a thing!) and in more recent years, the LIPS strategy at iasset.com.
So, imagine my shock when I was on a TSIA webinar where a poll was conducted. The audience was asked how much they factor adoption, expansion and renewals into their “Land” or Net-New sales motions. Only 26% of those surveyed said that they do deals with the customer lifecycle in mind! It’s time to move beyond this. The customer lifecycle shouldn’t be an afterthought, it should be considered right from the beginning of the journey.
If your goal is to optimize revenue across the customer lifecycle, the first thing your business needs (if you don’t have it already), is a clear strategy that centres your business around the entire customer lifecycle, such as LIPS (Land. Invest. Protect. Surrender).
An all-encompassing strategy like LIPS, ensures that you follow each stage very closely, from Net-New deals, right through to End of Life or End of Service (EOL/EOS). Every potential opportunity should be considered – no matter the deal size, no matter the stage within the lifecycle (upsell, cross-sell, upgrade, renew, etc). What’s more, it should be clear for every department and every partner to understand what needs to be done.
This approach will help your business optimize revenue through customer retention and increasing customer lifetime value (CLV). It will also allow you to demonstrate greater value to your customers along the way, where they can achieve better business outcomes through their technology investments (one of the emerging needs listed above).
2. Data and Analytics
We keep hearing that data is the new oil, so I posed this question to my guests on our ChannelTalks podcast/video series. Is data the new oil? I think Scott Frew explained it perfectly. He said that data is actually like crude oil. It needs to be stored appropriately and refined into something of value. It’s up to your organization as to what you want to mine out of it.
Having up-to-date sales and customer data available is fundamental for informing a lifecycle strategy. Without this information, it would be almost impossible to proactively anticipate and act upon future revenue opportunities.
With the right platforms working together in unison - such as your CRM, ERP and lifecycle management platform, your team can have a clear, consolidated, and real-time view of your installed base. Then with the help of analytics, you can make informed decisions and uncover actionable insights that will help you achieve your desired outcomes.
It is important however, that these data insights are readily available and don’t rely on manual data manipulation and analysis. Which brings me to my next point – automation.
3. Automation
If your goal is to grow revenue without having to incur additional costs such as hiring more staff or spending more marketing dollars (like those in the TSIA survey), then a digitized lifecycle strategy is exactly what you need.
Driving an effective lifecycle strategy at scale, requires automation. If you are not digitizing parts of the process, you are likely to be faced with significant inefficiencies, missed opportunities, and higher costs that will eat into your profit margin.
A lifecycle approach must be proactive, seamless and efficient. It isn’t a one-off project or campaign. It’s infinite. Which is why your team will need to carefully consider the people, processes and platforms needed to help make it successful.
Whilst most businesses recognize the importance of automation and its benefits, they often use the wrong tools to help “automate”. Automation isn’t trying to adapt legacy tools that aren’t fit for purpose. Automation is not adding manual workarounds to make things work. And automation isn’t about building a custom solution that will eat up a significant amount of your time, money and resources. Remember, you are trying to make more revenue in the most efficient, cost-effective way!
So as you can see, this wild ride won’t feel so wild anymore, if you focus on your existing customer base and the immense amount of revenue opportunities that could be realized. With the right strategy and tools to support you, your business will be well on track to achieve your objectives.
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