Over the last few weeks, we have been looking at how to re-ignite your revenue engine. We looked at how to use demand generation to re-fill your pipeline. Then we looked at how your sales team approaches those leads, and gets more of them to close.
This week, we are looking at your existing customers. Because, for most SaaS businesses, 80% of revenue comes from existing customers. So unless you are looking after your customers, your revenue growth will stall.
It’s likely that your customers have had their budgets frozen or cut. But there are 3 things you can do to ensure that dollars still come your way:
1. Call them about THEIR business, not yours
Do not call your customer and ask them about the renewal. Call them and ask them how the company is doing. Ask them about how they are doing. Ask them how their goals and objectives have changed, and how you can support them. Use genuine empathy to build a relationship with your customer, and show them that you care about more than just the renewal.
2. Ask them about their current pain points
It’s more than likely that your customer’s world has changed fundamentally over the last 6 months. The things they were struggling with before are probably not the things they are struggling with now. If you can understand what their current pain points are, you might uncover and opportunities to sell a solution to them that wasn’t applicable 6 months ago. And remember, this is not selling because you need to make quota. This is selling because you are genuinely wanting to help your customer.
3. Be flexible
Now is not the time to stick to the “rules”. You notice they are sharing licenses? Let it slide (for the moment). They want to add a feature but for a price lower than the ‘approved’ discount level. Give it to them (but let them know that pricing will return to normal at next renewal). They need a feature just for the next 3 months? Turn in on for them – if the feature adds value, they will gladly pay for it when the time comes. They need flexible payment terms? Talk to your finance - I can almost guarantee that they will relax the payment term rules because they will want the renewal just as much as you do
Keeping customers will make sure that you keep their revenue. But more importantly, it will also open up opportunities for future expansion.
Azim Nagree is an ex-Bain consultant with 20+ years in leading strategy, growth and operations transformations.