The Renewal Challenge - More Competition - Less Customer Loyalty
A service that meets and exceeds your customer's expectations is NOT enough to guarantee renewals. When everything runs smoothly, customers can often take the benefits you deliver for granted, which makes you vulnerable to competitors. As well, your squeaky wheel clients dominate customer service and account management time, but what about the quiet customers? It's easy to assume that no complaints mean happy, loyal, renewing customers, but that's not necessarily the case.
Every company is looking to grow. But as the total value of your recurring business increases, it's harder to replace the customers who do not renew, increasing your costs to acquire a customer (CAC) and depressing their lifetime value (LTV).
One irreplaceable tool in your revenue renewal arsenal is a proactive communications plan to address your four points of vulnerability (and opportunity). If you think that email is enough to do this job, think again. A staggering 45% of customers who did not renew annual agreements claimed they failed to do so because no one asked. Do you really believe that they weren't sent emails? Clearly, they need to literally hear from you as well.
4 Communications Steps for Renewing Business
Want to know how you can use business to business guided voicemail to create a powerful, proactive and affordable communications plan? Just click on More Info.