Value Achievement Tracker

Value Established. Renewal Achieved.

The What, Who and When?

Many CROs and CEOs believe that is more important to win customers and not just win deals. In fact, many executives are now measured on customer lifetime value as well as top line revenue. 

According to studies by Profitwell, customer acquisition costs are $1.37 for every $1.00 in Annual Recurring Revenue. Costs only start decreasing when customers buy another product from you or when they buy additional capacity for an existing solution. As such, customer renewals are an incredibly important time in the customer journey, as it’s where real profitability occurs. 

To help companies build customers for life, and healthy renewal rates as well as cross-sell and up-sell, or share of wallet expansion, companies must do everything they can to a) drive adoption of their solution and b) prove the value your solution is delivering. 

Value Achievement Tracker does both. It empowers your customer success team to demonstrate the value your solutions are delivering in a quantitative way, driving an appetite for adoption of your solution and “proof-in-the-pudding” in terms of renewal periods and mitigating any risk of cancellation. In addition, it helps customer success teams defend your prices, rather than discounting. 

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Comparing expectations often, based on what was promised in the original business case, is a sure way to build trust and long-lasting customer relationships. Your customer-facing organization can now be more proactive than ever in engaging your customers in value-based conversations after the sale.

And the results are spectacular. See Below.

Results

With the ability to prove your value at each interaction and have a way to gauge value achievement and course correct to ensure it is achieved, renewals and cross-sell / up-sell efforts will be successful. ValueCloud® customers who leverage the Value Achievement Tracker are tracking NRR at between 120% - 130%.  

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*Scenario/Assumptions:  

  • Company size: $500M per year in annual revenue, 30% Net Profit Margin, 195M Shares Outstanding
  • 70% of topline comes from renewal business 
  • Average Sale Price (ASP) $250K
  • Average Net Renewal Rates for ValueCloud users leveraging the Value Achievement Tracker: 120%

This result represents an impact to one metric in the early funnel stages - conversion towards a win. ValueCloud affects other metrics in the sales cycle: discounting, deal acceleration, deal size, and conversion rate improvement. Combined these all create a top-line and bottom-line impact.

How?

Value Achievement Tracker can take digital feeds from any system or platform to calculate value achieved by your end clients. 

Today, DecisionLink is feeding our own metered usage back into the system, and based on delivering close to 60,000 business cases for clients over the past 3 years, we have created approximately $1.4B worth of value based on industry average close rates of 33%. This type of data collected is golden during renewal discussions as well as upsell and cross-sell motions. 

It’s also valuable during product development, pricing, and packaging exercises, which are often very difficult tasks for Product Managers and Product Marketers. Having visibility into large quantities of value insights gives Product Managers the ability to make informed decisions during annual price reviews. 

Watch our webinar on this topic with Product Management expert, Stephan M. Liozu, Ph.D., the Chief Value Officer at Thales.

Watch it HERE.

Output

The output from the Value Achievement Tracker should be shared regularly with your champion, executive sponsor, and influencer. By showing your company’s ability to deliver against initial expectations, or as part of a Business Case, the Value Achievement Tracker can track against each of the initial KPIs, their ROI estimates, and the actual value achieved. 

Value Achievement Tracker empowers account managers and customer success teams to engage customers in best practice Quarterly Value Reviews (QVRs) and capture their sentiments of perceived gained value and the ability to compare that to the expectations of the original business case. Your customer-facing organization can now be more proactive than ever in engaging your customers in value-based conversations after the sale.

To see a full example of Value Realization, click here. 

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Why?

Value-based selling is a proven approach and activates most of today’s popular selling methodologies; it builds trust and credibility and differentiates a seller from competitors who are typically stuck in feature, function, and price conversations. 

But, Value Selling doesn’t stop when you’ve won the deal. You must continually measure and validate your value with each customer to support their ongoing relationship and ensure renewal and expansion. With ValueCloud®  Value Achievement Tracker, you can define the success criteria with the customer for their project or initiative and then measure the value the customer is achieving over time. 

This provides a few distinct benefits to you and your customer:

  • Your customer views your investment and partnership as strategic and knows where they stand along their journey as a customer. 
  • Rebuilds the internal capital your buyer spent getting your deal funded. By showing what value a project or initiative has provided to the business, your Champion’s ability to defend the project and get future projects funded increases exponentially. 
  • Course correct with customers before it is too late. By understanding where the customer is not getting the maximum value, you can provide consultation to enhance their return in each area. 
  • Bring in sentiment and actual metrics to understand the complete picture of the value realization of each of your customers.
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Customer Acquisition Costs have soared over the last 5 years, increasing by 65%. As a result, most companies fall into negative margin territory to acquire new customers, costing them $1.32 to acquire each $1 of New ARR. Costs drop significantly when upselling to existing customers to $0.71 per dollar, and even more when expanding existing customers or licenses to $0.38 per dollar. So how can you upsell and expand if you can’t prove the initial value that has been realized by a new customer?

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Sources: Google, Redpoint Venture Capital, 99Firms.com ProfitWell. The SaaS CFO and Hubspot

Why Us?

ValueCloud® doesn’t operate in isolation, nor perpetuate islands of value data, reports, case studies, spreadsheets, etc. We are uniquely positioned to deliver maximum ROI on marketing and sales investments because we are a digital platform that is flexible enough to evolve as your company, solutions, and target markets evolve.

With an intuitive user interface, companies have the power to update their models, pricing, benefits, internationalization and more, in real-time, freeing up valuable resources to focus on strategic deals versus managing consultants who deliver static reports and case studies. 

ValueCloud® uniquely creates a ValueThread™ that tracks a prospect’s value data throughout the funnel, removing the arduous and time-consuming task of cost-benefit analysis at every stage.  When marketers take the lead and leverage ValueCloud at the beginning of the customer journey, it sets the pace and tone for the entire sales organization to follow suit.

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Customers for Life. Realized.

Value Achievement Tracker is ideal for Customer Success Managers, Professional Services Managers, Product Managers, Renewal team members, and sales reps who want to ensure value is being realized by customers and need to leverage value achievement data to further customer for life or go-to-market activities.

*sold separately

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