Planhat’s Post

Contract renewals drive recurring revenue models by ensuring stable income, reducing acquisition costs, boosting CLV, and strengthening customer relationships. Strategies include customer success focus and personalised renewals. #Retention #Business #contract #administration #InformaConnectAcademy

Do you know how much it costs to acquire a customer? Is that cost sustainable for your business? We built a custom tool to help answer that question. This calculator looks at both your cost of acquiring a customer and develops a ratio for your customer lifetime value (CLV). A 1:1 ratio means you aren’t making any profit. A 2:1 ratio means that for every dollar you spend, you get $2 in revenue. Check it out and let us know what you think.

I asked a bunch of CSMs what their biggest challenge is right now. Their answer: Lack of control. Over their days. Over their customers. This explains why so many CSMs struggle with burnout. Still. Lack of control is quite vague. It's a feeling, and it's hard to figure out what to do about it. To make it more concrete, I would say that it's a simple matter of inputs not matching desired outcomes. - We have meetings with customers but they still churn. - We follow our checklists but customers are never fully onboarded. - We offer them great deals but they never expand. It's hard, because Customer Success will never be like Sales -- where results can be traced back to activity level. But I think we're starting to figure it out. The key is to define what progress looks like for each customer and to have the right tools to track progress closely. Discover the customer's goals and help them reach them with your product. When you know what the customer's goals are, you can then link the goals to the right processes/playbooks needed to help them achieve them. This are inputs you can control and that you know will affect your desired outcome (increased NRR). And by tracking the right metrics for customer progress, you make sure you only spend time on the customers where you can make the most impact right now. - You're not working your whole portfolio all at once. - You're not spending time on tasks you're unsure will affect anything. - And lastly, you're not wasting your customers' time either. And when you do this, you WILL regain the feeling of control. Promise.

Is your business struggling with missed #contract renewals or lost revenue opportunities? Learn the best practices for effective contract renewal management, from automated reminders to gaining better visibility into your agreements. Learn how to stay on top of renewals, improve customer relationships, and avoid costly mistakes with the right #ContractManagement solution: https://bit.ly/4h9vuQ8

Even The Biggest Players Can Hit A Snag Unlike what we think established businesses have got it all sorted. It’s not like that in real life. This 10-year-old brand was facing a growing challenge. Despite their market standing, they were grappling with the complexities of managing warranty claims. The traditional system was proving to be a bottleneck, hindering operational efficiency and customer satisfaction. There was a clear need for a more streamlined, data-driven approach. Without a customizable warranty solution, Wayona Corporation was operating in the dark. They lacked the crucial first-party data that could have offered invaluable insights into customer behavior, product performance, and warranty trends. The absence of a centralized portal for managing warranty claims was a significant operational hurdle, leading to increased processing time, errors, and customer frustration. Moreover, the manual-intensive processes associated with warranty claims were driving up overhead costs, impacting profitability. It was clear that a transformation was necessary. A solution that could not only automate warranty claims but also provide actionable data would be a game-changer for Wayona. These were the exact pain points of Wayona. And the solution? They opted for a customizable warranty solution that manages every single detail, from product registration, claims management, reducing costs, to helping the brand with the valuable data for after-sales services. It was a complete package that they got at the right time which resulted in them flourishing even more. Not trusting my words - Listen from the Man himself “Partnering with Dyrect has been a game-changer for our business. The platform has revolutionized the way we manage warranties. Not only has it streamlined our processes, but it's also given us valuable customer insights that are informing our future strategies” - Jimit Mehta

CSMs, you don't have infinite resources. If you would do every task you could and should you would work 24/7/365 and still not complete them all. Here are 4 things you need to consider to prioritize effectively: 1. Customer Profitability Customer profitability and success are closely connected. The more successful customers become the more profitable they become as well. Because they will continuously require more resources, features and products to further grow their outcomes. The gains from making your most successful customers even more successful will outweigh the potential losses from losing your least successful ones to churn. 2. Growth Potential Not all of the customers in your portfolio are profitable. Should you put all of them on minimum support? Most likely not because even your most profitable customers started out this way. Who are the customers that are not profitable yet but have significant growth potential? 3. Success Potential Investing into customers that are not profitable yet is placing bets. Before you place bets, you need to understand the odds. How likely are these customers to become successful and unlock their growth potential to become highly profitable? 4. Impact What activities deliver the best results? Few CSM teams ever measure the success rate of the services they provide. Do you spend your time on customer meetings that could have been an E-mail? Do you run QBRs that are redundant because that's what you are supposed to do? You will not get the best results from checking off every item on the list. You will get the best results from working with the right customers and doing the things that matter. Learn more → https://remark-able.at

Customer Success is the most important team in your company. Hear me out. CSMs handle adoption, retention, churn prevention, and contract renewals—just to name a few. These responsibilities alone make up the vast majority of your recurring revenue. Can you change my mind? #ChangeMyMind #CustomerSuccess #CSM

Forcing an existing customer to make a decision is forcing them to decide to stay with you or churn It's common for a service provider to require an initial term (say 36 months) and then auto renew (we push for month to month) But forcing your customer to opt in on the renewal (signing paperwork which involves approvals from procurement, finance, and legal) or terminating their account? That's just bad business Now the question is, do I pitch these providers a hefty consulting engagement to address their customer churn or do I just take the easy road and short their stock?

Customer success is the process of helping customers achieve their desired outcomes with your product or service. It is a proactive approach that involves understanding your customers' needs, educating them on how to use your product or service effectively, and providing ongoing support to ensure their success. 👉🏻 Customer success is more than just customer service. 👉🏻 It is about building long-term relationships with your customers. 👉🏻 It is all about helping your customers achieve their goals. Though Customer Success is not as easy as we think but it can easily reduce your CAC & increase the profit margins. #customersuccess #csm

Maximizing Your Voluntary and Ancillary Business for Renewals: Strategy vs. Group-by-Group Approach When it comes to gearing your voluntary and ancillary business for renewals, are you focused on the overall strategy, or are you tackling it group by group? While a group-by-group approach might offer short-term advantages for 1 or 2 groups, a strategic, block-level approach can significantly elevate the performance of all your groups. By developing tailored strategies with carriers, you can leverage your entire block of business to secure better underwriting offers, more favorable renewals, and even dedicated account managers. These enhancements not only improve customer satisfaction but also streamline servicing, making life easier for your team. Taking a holistic view ensures that you’re not just fixing issues for one group but setting up your entire portfolio for long-term success. How are you preparing your business for the next renewal cycle?