Customer Intimacy and Lifetime EngagementKeys to cloud offering success
Why are customer intimacy and lifetime engagement essential for today’s cloud-based businesses?
- Growing initial product/service sales are not as important as growing customer lifetime value. For example when interviewing candidates for sales openings, companies like HubSpot specifically look for and then measures sales people on their ability to close customers that will have a high lifetime value. The ability to sell a large initial sale often leads to high customer churn, which is undesirable.
- Switching costs are lower with cloud-based products. Customer intimacy has been shown to increase loyalty. While lifetime engagement increases customer lifetime value, one of the key metrics for cloud-based businesses.
- Prices for cloud-based products are lower than with on premise products. As a result, you must pare down your product offering to what is essential to make the initial sale, show rapid business value, and then offer relevant value added add-ons. At CA’s we developed a set of standardized base offerings which provided 80% of the functionality that 80% of the customers wanted.
- If your company’s margins are being squeezed, customer intimacy leverages yours most underutilized asset: the customer.
How can you establish a superior business based on customer intimacy and lifetime engagement?
- It’s more than just the customer touch points. Great companies know how to manage customer engagement in the whitespace. For example, Amazon and FedEx created the order tracking system so that their customers would be able to know where their order was from the time they placed the order to when it arrived at their home or office. More recently, Amazon’s “anticipatory shipping” enables them to start shipping your product even before you order it.*
- Measure and manage the customer journey, not just the sales pipeline.
- Understand that product-managed and customer-managed companies are very different.
How we can help you
Boston CMO works in partnership with Inspirion consulting to deliver all our services relating to customer intimacy.
- Assessment: We will conduct an independent assessment of your business and recommend improvements necessary to achieve your company and customer objectives to become customer intimate and manage lifetime engagement.
- Vision and Strategy: We work with your leadership team by facilitating the creation of a detailed vision for your customer-driven business and formulate a strategy for how to achieve it.
- Initiative Design and Implementation: Design and execute specific customer-oriented initiatives necessary to achieve your company and customer objectives.
For more information about how we can help you improve customer intimacy and lifetime engagement, contact us.