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Customer Retention Strategies: 5 Steps to Winning and Keeping Customers for Life
What is your Growth Strategy?
www.flickr.com/photos/12023825@N04/2898021822
Growth strategy?
Growth
Growth strategy?
Growth strategy?
Growth
Retention
and
Retention strategy
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 1
0 - 6 months
Horizon 2
6 - 12 months
Horizon 3
12 - 36 months
Diagnostic selling
Prescribing the right solution
SalesChannel Europe ©2016 All rights reserved
3 Phases of the Customer Life Cycle
PHASE II
Needs
Cost
Proof
Risk
Needs
Price
Proof
Risk
Design-in Prototyping ProductionLEVELOFCONCERN
Production
Availability
TIME
PHASE I PHASE III
Get it right
Get it wrong
the
Customers are leaving
Customers are defecting to other suppliers2
Unable to monetize business opportunity over full
customer life cycle3
Cost/effort to win back lost customers is extremely
high/prohibitively expensive4
5
Cost/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
Retention Strategy #1
Retention Strategy #1
Retention Strategy #2
Retention Strategy #2
Retention Strategy #2
Retention Strategy #3
Retention Strategy #4
Retention Strategy #4
Retention Strategy #4
Retention Strategy #5
The Problem?
the
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
Adaptive thinking
Personal change
Overcoming barriers to change
“Change is difficult.
Not changing is fatal”
The cost of Legacy Thinking
Developing new strengths
SalesChannel Europe ©2016 All rights reserved
Products and Services Customer Needs Customer Value and Results
Basis of Value
to Buyer
 Products and
services that meet
needs
Basis of Value
to Buyer
 Clarification of
needs
Basis of Value
to 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 Beliefs
and Behaviours
 Achieves product
match
Sales Beliefs
and Behaviours
 Builds customer
satisfaction and
relationships
Sales Beliefs
and Behaviours
 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
SalesChannel Europe ©2016 All rights reserved
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
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
Future focus
GAP Mindset
Goals
Aspirations
Problems
G
A
P
Aspirational thinking
Closer inspection
Sales Transformation = Selling Business Outcomes
OLD NEW
The IT Buyer The Business Buyer
Selling into CapEx Budgets Selling into OpEx Budgets
Technical Expertise Business Expertise
Geographic Sales Territories Vertical Industry Territories
Selling Features Selling Results
Fixed-Price Contracts Outcome-Based Contracts
Demonstrating Features Business Process Discussions
Your 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.”
“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.”
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
SalesChannel Europe ©2016 All rights reserved
Stages of Sales Proficiency
To be
considered
Product
Casual
Product
options
To make
a sale
Customer
Trust
Application
solutions
Repeat
business
Competition
Mutualistic
Business
issues
To dominate
an account
Customer’s
market
Symbiotic
Strategic
direction
Emerging
Salesperson Salesperson
Competitive
Salesperson
Competitive
Sales 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 of
Knowledge
Dimension of
Relationship
Dimension of
Partnership
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 for
differentiation
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.”
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
Transform Bad News into Good News
Avoidance strategy
79
Sales Conversation Pendulum
Advocacy
Inquiry
VS
Advocacy1. giving advice
2. setting the agenda
3. talking
Inquiry1. asking questions
2. finding out more
3. letting the customer speak
White Questions
Green Questions
Black Questions
Red Questions
Current situation
Facts, data & information
white snow: pure, cold hard facts
Desired situation
Future state
Grass, trees, growth, can become
Obstacles
Important, powerful
Dark, night time, can’t see in the dark. Turn on the light to see what
stands between current situation and desired situation.
Feelings
Fire, 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
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
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 perspectives
2. Collaborated with me
3. Persuaded me we would achieve results
4. Listened to me
5. Understood my needs
6. Helped me avoid potential pitfalls
7. Crafted a compelling solution
8. Depicted purchasing process accurately
9. Connected with me personally
10.Overall value from the company is superior to others*What Sales Winners Do Differently, RAIN Group, 2013
SalesChannel Europe ©2016 All rights reserved
Belief systems
Winners practice Adaptive thinking
What can I do?
SalesChannel Europe ©2016 All rights reserved
The 5Rs of Retention
1. 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
Make them want to stay
Make them want to stay
Make them want to stay
Get them to your beach
Get them to your beach
Get them to your beach
Get them to your beach
Make them want to stay
Make them want to stay
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 clients
2. Inspire and educate
3. Share their insights
4. Think long-term relationships
5. Take personal responsibility for the
Customer Life Cycle End2End
Win, Retain & Develop New Business
Create Long-term Profitable Growth
Personal accountability
If It Is To Be
It Is Up To Me
Past
Future
Commitment to Change
To Be The Best
That You Can Be
My wish for you
Get it right
www.flickr.com/photos/horacio/3781750
David R Ednie
President & CEO
SalesChannel Europe
Ph: +33 676 60 09 25 (FRA)
Email: david@saleschannel-europe.com
Website: www.saleschannel-europe.com

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Customer Retention Strategies: 5 Steps to Winning and Keeping Customers for Life

  • 2. What is your Growth Strategy?
  • 10. 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 1 0 - 6 months Horizon 2 6 - 12 months Horizon 3 12 - 36 months
  • 13. SalesChannel Europe ©2016 All rights reserved 3 Phases of the Customer Life Cycle PHASE II Needs Cost Proof Risk Needs Price Proof Risk Design-in Prototyping ProductionLEVELOFCONCERN Production Availability TIME PHASE I PHASE III
  • 16. the
  • 18. Customers are defecting to other suppliers2 Unable to monetize business opportunity over full customer life cycle3 Cost/effort to win back lost customers is extremely high/prohibitively expensive4 5 Cost/effort of winning new customers is 10-15 X higher than winning new business from existing customers Unable to keep existing customers1
  • 21. Retention strategies Our Retention Plan Customer Response
  • 35. the
  • 37. 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
  • 41. “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.”
  • 44. Focus on the customer's perspective
  • 45. 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
  • 46. Your job is to …
  • 51. “Change is difficult. Not changing is fatal”
  • 52. The cost of Legacy Thinking
  • 54. SalesChannel Europe ©2016 All rights reserved Products and Services Customer Needs Customer Value and Results Basis of Value to Buyer  Products and services that meet needs Basis of Value to Buyer  Clarification of needs Basis of Value to 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 Beliefs and Behaviours  Achieves product match Sales Beliefs and Behaviours  Builds customer satisfaction and relationships Sales Beliefs and Behaviours  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
  • 55. SalesChannel Europe ©2016 All rights reserved 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
  • 58. “Doing exactly the same thing over and over again, but expecting a different result.” - Albert Einstein Definition of insanity
  • 59. 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
  • 65. Sales Transformation = Selling Business Outcomes OLD NEW The IT Buyer The Business Buyer Selling into CapEx Budgets Selling into OpEx Budgets Technical Expertise Business Expertise Geographic Sales Territories Vertical Industry Territories Selling Features Selling Results Fixed-Price Contracts Outcome-Based Contracts Demonstrating Features Business Process Discussions Your 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
  • 66. 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
  • 68. “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.”
  • 69. “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.”
  • 70. 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
  • 71. SalesChannel Europe ©2016 All rights reserved Stages of Sales Proficiency To be considered Product Casual Product options To make a sale Customer Trust Application solutions Repeat business Competition Mutualistic Business issues To dominate an account Customer’s market Symbiotic Strategic direction Emerging Salesperson Salesperson Competitive Salesperson Competitive Sales Consultant Stage I Stage II Stage III Stage IV Intent Focus Relationship Value
  • 72. The Sales Person of the Future is a Consultant Conclusion: (with Sales Skills)
  • 73. Dimension of Knowledge Dimension of Relationship Dimension of Partnership 1 2 3 Partner Sales Maturity
  • 74. Dimension of Knowledge Dimension of Relationship Dimension of Partnership 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 for differentiation 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
  • 75. - Unknown “Not a lack of resources, but a lack of resourcefulness.”
  • 76. 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
  • 77. Transform Bad News into Good News
  • 81. Advocacy1. giving advice 2. setting the agenda 3. talking
  • 82. Inquiry1. asking questions 2. finding out more 3. letting the customer speak
  • 83. White Questions Green Questions Black Questions Red Questions Current situation Facts, data & information white snow: pure, cold hard facts Desired situation Future state Grass, trees, growth, can become Obstacles Important, powerful Dark, night time, can’t see in the dark. Turn on the light to see what stands between current situation and desired situation. Feelings Fire, 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
  • 84. 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
  • 86. 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
  • 89. “When they imagine the future, They only see the present.” Customer Challenge #1
  • 91. Success is the other side of failure
  • 93. What did sales winners do differently?* 1. Educated me with new ideas or perspectives 2. Collaborated with me 3. Persuaded me we would achieve results 4. Listened to me 5. Understood my needs 6. Helped me avoid potential pitfalls 7. Crafted a compelling solution 8. Depicted purchasing process accurately 9. Connected with me personally 10.Overall value from the company is superior to others*What Sales Winners Do Differently, RAIN Group, 2013
  • 94. SalesChannel Europe ©2016 All rights reserved Belief systems
  • 96. What can I do?
  • 97. SalesChannel Europe ©2016 All rights reserved The 5Rs of Retention 1. 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.
  • 104. Make them want to stay
  • 105. Make them want to stay
  • 106. Make them want to stay
  • 107. Make them want to stay
  • 108. Get them to your beach
  • 109. Get them to your beach
  • 110. Get them to your beach
  • 111. Get them to your beach
  • 112. Make them want to stay
  • 113. Make them want to stay
  • 114. Make them want to stay
  • 115. Make them want to come and to stay
  • 116. 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
  • 117. What is the single most important thing that top sales performers do?
  • 118. 1. Challenge their clients 2. Inspire and educate 3. Share their insights 4. Think long-term relationships 5. Take personal responsibility for the Customer Life Cycle End2End Win, Retain & Develop New Business Create Long-term Profitable Growth
  • 120. If It Is To Be It Is Up To Me
  • 122. To Be The Best That You Can Be My wish for you
  • 124. www.flickr.com/photos/horacio/3781750 David R Ednie President & CEO SalesChannel Europe Ph: +33 676 60 09 25 (FRA) Email: david@saleschannel-europe.com Website: www.saleschannel-europe.com