ServiceSource® (NASDAQ:SREV), the global leader in recurring revenue management, today introduced an actionable blueprint for customer lifecycle management (CLM). The blueprint, available today in an eBook, includes a step-by-step strategy to help subscription-based businesses create customers for life and maximize customer lifetime value.
Designed for CXOs at business-to-business (B2B) cloud, media and information services companies, the eBook shines a light on the importance of maximizing customer lifetime value to achieve sustainable revenue and profit growth. In fact, a report by Bain & Co found that a 10 percent increase in customer retention results in a 30 percent increase in a company’s valuation, and that it is six to seven times more expensive to acquire a new customer than to retain an existing one.
“As companies transition to support cloud and recurring revenue business models, customer lifecycle management is now taking center stage,” said Amy Konary, research vice president, IDC's software licensing and pricing at IDC. “Adopting an effective customer lifecycle management process can help companies drive the right sales behaviors, monitor key metrics, and support customer success in order to bolster customer retention and long-term business growth in the subscription economy.”
The eBook and corresponding blueprint for CLM outlines the elements of the CLM process, core capabilities needed, and the benchmarks for success. The eBook highlights the need for companies to engage with customers at every stage of the lifecycle, including:
- Acquisition – Ensure customer expectations and requirements for your products and services are known up front.
- Onboarding – To meet business commitments, track and manage exceptions during critical milestones such as provisioning, configuration, and integration.
- Adoption – Track individual user adoption and provide automated nurturing to ensure training, feature discovery and best practice activities occur.
- Delivery – Over time, consistently monitor and analyze end user and customer usage to proactively engage based on customer needs.
- Retention – Leverage predictive analytics to identify customers most at risk of churn and quickly intervene to retain them.
- Renewals – Ensure renewal teams have complete and accurate visibility into renewal opportunities, while engaging with customers 90-120 days prior to contract expiration. For lower-value subscriptions, leverage auto-renewals to automate the process.
- Upsell and Cross-sell – Utilize predictive analytics to uncover upsell and cross-sell opportunities, while ensuring that sales teams are trained to execute related sales plays.
- Advocacy – Nurture customers to become advocates in the community and fuel further growth.