How Customer Value Management Boosts the Bottom Line - Step 4 Driving Adoption
Centering Value at Each Touchpoint Creates Global Impact
Companies leveraging Customer Value Management across their organization see benefits in all aspects of their business. It drives adoption, operationalizes customer sentiment, and enables companies to leverage important metrics in their conversations. These benefits are important because they ultimately add up to transformational change for businesses—change that is reflected in real bottom-line impact.
With CVM SaaS platforms, companies can see 130% net recurring revenue. CrowdStrike, one of DecisionLink’s clients, realized $189 million in value by implementing ValueCloud. They’re not alone in the scale of impact they’ve experienced. Any business can see its bottom line grow by approaching sales from a value perspective. Customer Value Management tools are the most dependable way to get there.
Customer Value Management Delivers Benefits Across the Entire Organization
All businesses look toward their bottom line benefits to determine whether an investment is worthwhile. CVM tools provide the global metrics to demonstrate a product’s ROI so that customers can understand the broad economic value of their purchase. Depending on the customer, these metrics may include return on capital, operating margin, or earnings per share.
Value realization allows visibility into the promises made earlier in the sales cycle to ensure that customers get what they paid for. Not only does it provide proof that the customer is achieving what they expected, but it also enhances the relationship between salespeople and customers, laying the foundation for future conversations around renewals.
As we’ve discussed previously, leading quantifiable, outcome-based conversations have the power to unlock new levels of engagement. This is how companies make the transition from vendors to trusted advisors—and conversations become less transactional and more personal. The opportunity for cross-sell and upsell arises organically, and relationships evolve into long-term partnerships.
“The reality is a siloed sell approach just isn’t sustainable anymore. This is particularly true in the SaaS world that we all live in, where retention is just as important as signing a new deal,” said Steve Durkee, DecisionLink’s Senior Director of Sales, during a recent webinar, Value Selling As A Team Sport. “Building those broader and deeper relationships and proving that you can deliver economic impact organization-wide is now essential.”
CVM Imparts Broad Industry-Wide Insights
Customer Value Management platforms enable businesses to systematically gather information about their prospect’s industry and relevant benchmark companies. By examining how sales progress with a particular client, businesses gain general insights that allow for peer comparison, best practices, and course correction—with no extra effort.
This information provides a competitive edge. When approaching a new client, Customer Value Management software is essential when it comes to creating accurate estimates to include in the value hypothesis. Industry insights can be the difference between a mediocre business case and a winning one. And in a cutthroat SaaS sales environment, businesses need all the advantages they can get. The knowledge gained from CVM is power.
As Tom Rose, VP of Technical Solutions, Knowledge and Training at Nasuni, said on the same webinar, ValueCloud has given his team insight into “who the real competitors are.” This knowledge has helped sales and customer success teams strategically position their product against others and anticipate customers’ questions before they even ask.
CVM also positively impacts sales departments in the long run by “lifting the long tail,” resulting in more quota achievers. As individual salespeople boost their wins through technology-driven insights, organizations gain greater capacity to clearly articulate the economic value of their solutions in a scalable, repeatable, and efficient way, creating a virtuous cycle. Tracking business impact with CVM enables leaders to reduce discount levels, improve win rates, accelerate deal velocity, and increase deal size while differentiating themselves from the competition.
Mature Customer Value Management systems go beyond simply driving adoption, surveying customer sentiment, and tracking low-level metrics to provide a larger picture on general industry trends and higher-level business drivers.
Solutions like ValueCloud enable businesses to easily define clear bottom- and top-line impacts to create more compelling pitches and stronger, lasting relationships. With full visibility into how your product helps customers you’ll empower your team to be more confident throughout the sales cycle. And by leading with value to the customer, every deal is yours to win.
IDC released a report that shares why customer value management (CVM) is the best way to measure the lifetime value of a commercial relationship, how it differs from conventional ROI and value-based selling, and its impact on businesses amid today's selling from home environment. Download the report to learn how, when adopted across the organization, companies can help their customers achieve their strategic goals while gaining industry insights and a competitive advantage.