What Is the Quickest Route to Revenue? Nurturing Your Install
As companies spend thousands—if not millions—of dollars on marketing to attract new customers, several fail to see the low-hanging fruit for revenue expansion that lies within their current customer base. The cost associated with acquiring a net-new customer is exponential compared to the simple tactical costs of maintaining an existing one.
In today’s competitive technology marketplace, customer retention and customer loyalty should be at the top of every marketer’s go-to-market strategy. Annex Cloud, a leading customer loyalty research firm, shows through its research:
- It costs 500 percent more to acquire new customers than it does to keep current ones.
- The cost of bringing a new customer up to the same level of profitability as an old one is up to 16 times more.
- Eighty-two percent of companies agree that retention is cheaper to execute than acquisition.
- Lowering your customer churn rate by 5 percent can increase your profitability by 25 to 125 percent.
- On average, loyal customers are worth up to 10 times as much as their first purchase.
- The average repeat customer spends 67 percent more in their 31st to 36th months of their relationship with a business than in months zero through six.
“So,” you’re thinking, “How do I nurture these existing customers? Where do I start?” First, you must know your customer. What have you sold, to whom and how long ago? CRM and business intelligence tools are key to developing a nurture strategy. But some companies may lack these types of tools or the investment dollars to implement this strategy. Many companies also struggle in warehousing a single repository of customer data with key customer contacts and insights that reside at a sales rep level.
Consider value-added distribution for customer insight and nurture support. A true value-added distributor allows a channel partner to profit immediately. Partners should expect a distributor to provide insight into their customers and into market opportunities.
Arrow is one such value-added distributor that delivers on the power of knowledge and nurturing. Available exclusively for Arrow partners and suppliers, the Arrow Insight analytics dashboard consolidates transaction data to provide you with easy, fast and accurate ways to analyze end-user demographics and define sales strategies for refresh and attach opportunities. Our tools can specifically help you analyze:
- Missed opportunities/share of wallet
- Peer comparisons/partner performance
- Competitive landscape
- Your historical trends
- YoY/QoQ trends by vertical and supplier
- Market spend forecasts
- Emerging trends
- White space lists
With these key insights, Arrow can then assist in building targeted messaging coupled with tactical inbound/outbound marketing vehicles to identify interest and sales opportunities within your customer base.
Maximize your profitability at lower costs with the power of a nurturing campaign by leveraging true value-added distribution services. For more information about how Arrow can help, contact us today at 877.558.6677 or firstname.lastname@example.org.
Guest blogs such as this one are published monthly and are part of Talkin’ Cloud’s annual platinum sponsorship.