customer retention strategies: 5 steps to winning and keeping customers for life

What is your Growth Strategy?

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Growth strategy?

Growth

Growth strategy?

Growth

Retentionand

Retention strategy

SalesChannel Europe ©2016 All rights reserved

Thinking at 3 Time Horizons

Closing Current Opportunities:• Winning Deals• Pitching to Win• Closing Building Tomorrow’s

Business:• Industry trends• Industry competitive

challenges• Collaborative strategy

Building the Pipeline:• Solutions to Customer

business challenges• Value Propositions• Account Sales Plan

Horizon 10 - 6 months



Diagnostic selling

Prescribing the right solution


3 Phases of the Customer Life Cycle

PHASE II

NeedsCost

ProofRisk

Needs

Price

Proof

Risk

Design-in Prototyping ProductionLE

VEL

OF

CO

NC

ERN

Production Availability

TIME

PHASE I PHASE III

Get it right

Get it wrong

Customers are leaving

Customers are defecting to other suppliers2

Unable to monetize business opportunity over full customer life cycle3Cost/effort to win back lost customers is extremely high/prohibitively expensive4

5Cost/effort of winning new customers is 10-15 X higher than winning new business from existing customers

Unable to keep existing customers1

The simple solution

Constraint-based strategies

Retention strategies

Our Retention Plan

Customer Response

Retention strategies

Retention Strategy #1

The Problem?

Retention Toolkit

Mindset Matters Most1

Sell Business Outcomes not Technology2

Where are you on the Partner Sales Maturity Model?3

How and when to communicate Bad News4

Focus on your Customer’s Long-term Success5

Change your view

Anticipate the future

Transform your vision

“Attitude is a choice, and its available to all.”

Its all about Attitude

- Seth Godin

“What actually separates winners from losers isn’t

talent, its attitude.”

Positive attitude

Customer-centric attitude

Focus on the customer's perspective

Who is your Customer?

Sell to Sell thru(Customer) (Customer = Partner)

=?X

Transactional Relational• Short-term• One shot focused

• Medium to long-term• Repeat business focused

Your job is to …

Adaptive thinking

Personal change

Overcoming barriers to change

“Change is difficult.Not changing is fatal”

The cost of Legacy Thinking

Developing new strengths


Products and Services Customer Needs Customer Value and ResultsBasis of Valueto Buyer

Products and services that meet needs

Basis of Valueto Buyer

Clarification of needs

Basis of Valueto Buyer

Business insights and advice

A range of Options A network of resources

Follow-up to ensure satisfaction

A mutually beneficial, long-term partnership

Sales Beliefsand Behaviours

Achieves product match


Builds customer satisfaction and relationships


Creates value throughout customer organisation

Believes in features and benefits

Believes in solutions Believes in business partnership

Presents and closes Listens, explores, suggests options and proposes

Researches, anticipates, advocates and orchestrates

Supplier Advisor Partner

Selling Focus

The New Sales Mindset


Mindset Shift

Sales Engagement Goals

Mindset Shift

Move from Move to

Seek to understand the big picture Linear thinking Systemic viewpoint

Seek to understand the underlying behaviour Fixating on an event Observing patterns and

structures

Seek systemic change Short-term fixes Long-term initiatives

Seek to surface limiting beliefs Jumping to conclusions Suspending judgment

Seek to evolve a shared vision

Boundaries around beliefs A borderless mindset

Possibility Mindset

Legacy thinking

“Doing exactly the same thing over and over again, but

expecting a different result.”- Albert Einstein

Definition of insanity

Future focus

GAP Mindset

GoalsAspirationsProblems

GAP

Aspirational thinking

Closer inspection

Sales Transformation = Selling Business Outcomes

OLD NEWThe IT Buyer The Business BuyerSelling into CapEx Budgets Selling into OpEx BudgetsTechnical Expertise Business ExpertiseGeographic Sales Territories Vertical Industry TerritoriesSelling Features Selling ResultsFixed-Price Contracts Outcome-Based ContractsDemonstrating Features Business Process DiscussionsYour Complexity and Underlying Architecture

Your Consumption Model and Service Capability

Maintenance Contracts "Apps Mindset"Face2Face Sales Skills Social Media Knowledge

Source: Consumption Economics: The New Rules of Tech by J. B. Wood, Todd Hewlin and Thomas Lah, 2011

SalesChannel Europe ©2016 All rights reserved 66

Selling Business Outcomes

• Increased revenues or profitability• Faster time to market• Decreased costs• Improved operational efficiency• Revitalizing the organization• Enhancing customer loyalty• Increased market share• Decreased employee turnover• Improved customer retention levels• Increased competitive differentiation• Faster response time• Decreased operational expenses

• Increased sales per customer• Improved asset utilization• Faster collections• Reduced cost of goods sold• Minimized risk• Additional revenue streams• Improved time-to-profitability• Increased billable hours• Reduced cycle time• Increased inventory turns• Faster sales cycles• Reduced direct labour costs

Customers want outcomes

“Don't wish it were easier;wish you were better.

- Jim Rohn

Don't wish for less problems;wish for more skills.

Don't wish for less challenges;wish for more wisdom.”


Stages of Sales Proficiency

To beconsidered

Product

Casual

Productoptions

To makea sale

Customer

Trust

Applicationsolutions

Repeatbusiness

Competition

Mutualistic

Businessissues

To dominatean account

Customer’smarketSymbiotic

Strategicdirection

EmergingSalesperson

SalespersonCompetitiveSalesperson

CompetitiveSales Consultant

Stage I Stage II Stage III Stage IV

Intent

Focus

Relationship

Value

The Sales Person of the Future is a Consultant

Conclusion:

(with Sales Skills)

Dimension of Knowledge

Dimension of Relationship

Dimension of Partnership

1

2

3

Partner Sales Maturity

Dimension ofKnowledge

Dimension ofRelationship

Dimension ofPartnership

Top 3 customers Business development strategy Prospects introduced

Top 3 suppliers Supply chain challenges Alternative suppliers introduced

Top 3 competitors Activity to tackle competitive threats

Suggestions made fordifferentiation

Top 3 staff members Key vacancies/talent gaps Candidates/HR solutions introduced

Top 3 business issues Value of each business issue

Active assistance with 1+ issues

Forecast/vision/plan for next 3 years

Visibility of functional plans (where they exist)

asked for input on strategic and operational business plans

1 2 3

- Unknown

“Not a lack of resources,but a lack of resourcefulness.”

Transform Bad News into Good News

Avoidance strategy

79

Sales Conversation Pendulum

Advocacy

InquiryVS

Advocacy1. giving advice2. setting the agenda3. talking

Inquiry1. asking questions2. finding out more3. letting the customer speak

White Questions

Green Questions

Black Questions

Red Questions

Current situationFacts, data & informationwhite snow: pure, cold hard facts

Desired situationFuture stateGrass, trees, growth, can become

ObstaclesImportant, powerfulDark, night time, can’t see in the dark. Turn on the light to see what stands between current situation and desired situation.

FeelingsFire, explosive color, highly emotional-ve Red: “If Stan doesn’t do something he won’t make his quota. He really needs some help. Stan needs to talk to you.”+ve Red: “If Stan overachieves this year, he will probably be promoted to VP Sales

Asking Questions in Colour

Tell

Ask

Problem Solution

Conversation Directional Compass

• Describing the problem• Problem focused

• Asking questions about the problem

• Problem focused

• Asking questions about possible solutions

• Solution focused

• Talking about the solution• Describing possible solutions

Competitive separation

Discovery Mindset

Customer Challenge #1

“When they imagine the future,They only see the present.”

Customer Challenge #1

Navigate uncertainty

Success is the other side of failure

Recommended reading

What did sales winners do differently?* 1. Educated me with new ideas or perspectives2. Collaborated with me3. Persuaded me we would achieve results4. Listened to me5. Understood my needs6. Helped me avoid potential pitfalls7. Crafted a compelling solution8. Depicted purchasing process accurately9. Connected with me personally10.Overall value from the company is superior to others

*What Sales Winners Do Differently, RAIN Group, 2013


Belief systems

Winners practice Adaptive thinking

What can I do?


The 5Rs of Retention1. Reality: confront the real situation and the consequential issues openly,

objectively and honestly. Remain rational, avoid emotional and judgmental thinking. Stay focused on the Client's desired business outcomes. Don't become part of the problem.

2. Review: where are we now, where do we want to be? What is the gap? What can we do to close the gap?

3. Reframe: describe new situation, the alternative future(s). Focus on actions that will minimize the negative consequences of the gap, and maximise the positive.

4. Reset: reset expectations by "selling" a new vision of the future. Describe the best possible future available given the changed situation.

5. Recommit: restate your personal commitment to deliver the best possible outcome for the customer based on the current situation. Describe the personal actions that you will take to: i) minimize the negative consequences and ii) maximize the positive outcomes possible given the changed situation.

Retention thinking

Retention mindset

Jailbreak thinking

Escape thinking

Retention strategies don’t work

Future reality

Make them want to stay

Get them to your beach

Make them want to stay

Make them want to come and to stay

1. Mindset Matters Most

2. Sell Business Outcomes not Technology

3. Where are you on the Partner Sales Maturity Model?

4. How and when to communicate Bad News

5. Focus on your Customer’s Long-term Success

Quick Review:

Customers want Outcomes

Knowledge -> Relationship -> Partnership

As soon as possible, followed by Advocacy and Inquiry

Add Value through sharing Business Insights

Competing to remain relevant to tomorrow’s customers

Become a Business Partner

What is the single most important thing that top sales performers do?

1. Challenge their clients2. Inspire and educate3. Share their insights4. Think long-term relationships5. Take personal responsibility for the

Customer Life Cycle End2EndWin, Retain & Develop New Business

Create Long-term Profitable Growth

Personal accountability

If It Is To BeIt Is Up To Me

PastFuture

Commitment to Change

To Be The BestThat You Can Be

My wish for you

Get it right

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David R EdniePresident & CEO

SalesChannel EuropePh: +33 676 60 09 25 (FRA)

Email: [email protected]: www.saleschannel-europe.com