Companies track a lot of metrics, including customer acquisition costs (CAC), customer lifetime value (CLV), and monthly recurring revenue (MRR). While these are all important to measure, one metric that often gets overlooked is the customer retention cost (CRC).
Stay ahead with customer value thinking.
Many businesses focus on customer acquisition strategies to raise their profits. However, customer retention often leads to a higher return on investment (ROI). It costs businesses five times more to acquire a new customer than keep an existing one. When your organization develops methods to increase customer retention, you grow a loyal customer base that positively spreads the word about your company and yields a better bottom line.
Traditional sales and marketing are becoming obsolete. What a bold statement! It is not one of mine. It is a statement borrowed from the latest blog on HBR.org. With the disappearing sales process and the digitalization of go-to-market activities, there is a new reality as follows:
Today’s buyers are savvier than ever. To address their evolving sophistication and expectations, successful CROs are leaning into technology that aligns sales and buyer objectives to build long-term relationships. Customer Value Management (CVM)is the key to driving greater customer lifetime value. With an end-to-end CVM platform, your team has the power to unify value measurements, elevate sales conversations to what matters to decision-makers, and drive customer success by presenting value at every stage of the engagement.
Customer success is shifting from being measured in terms of analytics and metrics to customer value. The change is attributed to a more customer-centric market with new consumer demands and advancing technology. As a result, your key performance indicators (KPIs) to measure customer success must also adapt to continue to thrive in today’s business environment.
The impact of digitalization on the sales function feels like an earthquake. Just look at the number of available software solutions and apps available to enable the sales process. The overarching goals of all these solutions is to further commercial intelligence and boost sales outcome. So let us start with the definition of what commercial intelligence is. Wikipedia is my go-to source for that!