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The digital landscape has shifted massively over the last few years, and it’s this shift that’s caused companies to review their digital commerce processes. Not only are they witnessing a resource scarcity, with 4 million Americans quitting their jobs, but the digital infrastructure expectation from B2B buyers has changed.
B2B buyers crave a B2C customer experience - and there’s no reason organizations can’t deliver that. The problems facing your organization and so many others include neglected long-tail customers, antiquated manual processes, and high churn rates. Organizations have to rethink growth with the introduction of automation and instead have to measure efficiency and effectiveness to determine growth rates and address these issues.
Why is customer retention important?
Firstly, think about the long, arduous process (and the cost) of finding new customers. The marketing campaigns, the time sales reps pour into initial discovery calls. To nurture business growth, you need a healthy stream of new customers, sure, but you also need to retain the customers you have.
But to retain customers, you need to invest in the customer experience – give them an amazing renewal experience with all of the simplicities and seamlessness they expect in these digitally driven times. And that means listening to what they want and delivering it. According to research by Bain & Company, companies who excel in customer experience can expect to see a revenue growth that’s 4-8% above their market.
What is long-tail renewal automation — why is it important to the customer experience?
Long-tail renewal automation is crucial to your business growth. Why? If you only focus on high-value customers, you’re neglecting a large proportion of your customers. And although long-tail customers are lower in value, the contracts soon add up.
Regardless of contract size, customers should all receive a premium customer experience. And superior customer experience is a way to drive superior revenue growth, according to Forrester. And how does it generate superior revenue growth? By decreasing churn.
It’s understandable that you’re currently unable to focus your efforts on converting these customers; you need to spend your sales energy converting the bigger fish. But that’s where an automated system comes into play. It takes the renewal of your long-tail customers off your hands.
With long-tail renewal automation, you can recover lost revenue for the renewals that would've previously slipped through the net, increase your conversion rate, decrease churn, and focus on generating new business.
Read our previous blog in this series: Unleash Hypergrowth with Renewal Automation.
