In the Subscription Economy, “Expansion Messaging” is the Key to Driving Customer Renewal and Growth
Over the last decade, most companies have moved away from one-time product and service sales to subscription-based business models. In fact, analysts estimate that 70-80 percent of the average company’s revenue now comes from existing customers in the form of renewals and upsells.
The majority of companies (58 percent according to a Corporate Visions survey) see no need to differentiate their messaging and content between new customer acquisition and customer retention or expansion. Instead of tailoring their messages and delivery, they rely on the same message for marketing, regardless of the customer relationship.
The problem is, this one-size-fits-all approach can backfire—and there’s research to prove it. The messages and skills needed to win “Why Stay” renewal and “Why Evolve” expansion conversations are 180 degrees different than acquisition conversations. Using the wrong approach, at the wrong time, can cost your business dearly.
Read the full article from Tim Riesterer, Chief Strategy Officer at Corporate Visions, on CustomerThink.com and find out how to tailor your marketing and sales messages for customer renewal situations.