Funnels and pipelines. Keeping sales flow moving can be referenced in different ways. 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.
Research indicates that nearly seven of 10 office technology buyers who decide to switch providers point to the end-of-lease experience as the primary reason for leaving.
These customers aren’t 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 survey participant 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 four tips to ensure a successful lease-renewal experience:
- Tell them up-front. Then tell them again. Sales representatives, lease administrators, and even dealer principals need to go the extra mile to educate their customers on terms at the point of lease inception and again at the expiration of the agreement.
- Be proactive about the end. Establish a process that leverages marketing, sales, and service contacts to remind customers about an expiring lease term. A simple triggered marketing campaign that offers items for consideration 18, 12, six, and three months out, along with disciplined account-management communications, goes a long way toward an effective renewal strategy.
- Be intentional. Many dealers go to remarkable lengths to establish processes and strategies to deliver a great experience for new customers, but they spend little time and energy on the renewal experience for existing customers. The last few years have been stressful for everyone, so give your existing customers the TLC they need.
- Use “technology plans” or “upgrade plans.” Financial planners successfully keep clients by building plans that extend beyond a one-time transaction. 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 creativity, you can come up with a renewal experience that retains monthly recurring revenues and boxes out the competition. LEAF helps office technology dealers make these solutions affordable today and for the renewal ahead.