Funnels and pipelines. Sales is full of references to keeping the “flow of business” moving. But the secret to building long-term recurring revenue (and revenue in general) has less to do with bringing in new customers than how you renew existing ones.
Recent research indicates that nearly 7 of 10 office technology buyers who decide to switch providers point to the end-of-lease experience as the primary reason for leaving.
They’re not leaving because your competition has lower prices, better technology, or even a more valuable service offering. They’re leaving because the end-of-lease experience drove them to look for alternatives. As one of the survey participants said, “If Dealer X had put half of the energy into the end of my lease term as they did selling it the first time, we’d likely still be a customer.”
Getting new customers is important. But so is keeping the ones you already have.
Here are 4 tips to ensure a successful lease renewal experience:
- Tell them up-front. Then tell them again. At the point of lease inception, sales, lease administrators, and even dealer principals need to go the extra mile to educate the customer on the terms of their lease – especially upon expiration of the agreement.
- Be proactive about the end. Establish a process that leverages marketing, sales, and even service contacts to remind customers about an expiring lease term. A simple triggered marketing campaign that offers items for consideration 18, 12, 6, and 3 months out, along with disciplined account management communications, could go a long way toward an effective renewal strategy.
- Be intentional. Many dealers go to remarkable lengths to establish processes and strategy to deliver a great experience for new customers, but they spend little time and energy on the renewal experience for existing customers.
- Use “technology plans” or “upgrade plans”. Wealth planners have done very well keeping clients by building plans that extend beyond a one-time transactional moment. Give your clients a written plan that includes upgrade options, additional services, and a reminder of your end-of-term process.
With just a little process discipline and creativity, you can come up with a renewal experience that retains precious monthly recurring revenues and boxes out the competition. LEAF helps office technology dealers make these solutions affordable today and for the renewal ahead.