Business Performance Study: Customer Retention is #1 Strategic Imperative for 2017
A recent study conducted by Altify in conjunction with IDD Consults takes a look at the challenges that face enterprise B2B companies in 2017. It explores strategic initiatives, revenue considerations, top priorities for businesses, and metrics that can be used to gauge progress.
B2B Statistics and Trends
- The number one strategic imperative for 2017 is customer retention.
- While 83 percent of professionals believe the customer is more in control of the buying cycle than ever before, only 65 percent of sales organizations have a sales process aligned to the customer’s buying process.
- Forty-two percent of sales professionals say their marketing function does not understand the customer.
- One in three sellers feels they cannot effectively uncover customers’ business problems.
“Sales has always been about the customer, and every business that is growing in today’s subscription economy needs to be laser-focused on customer retention,” said the study’s author, Donal Daly, executive chairman of Altify. “Companies that worry about selling the right solution to their customers and care deeply about the value they deliver – before, during, and after the deals close – are the ones who are achieving sustained differential advantage and leading their markets.”
The study of 833 participants from 60 countries uncovered a positive outlook among business leaders with 87 percent expecting business performance improvement in 2017. Researchers correlated results with the execution of best practices to identify the top five business performance levers for sales and marketing organizations.
Top 5 Business Performance Levers
- The solution is aligned to customer’s needs (win rate up 33 percent, sales cycle down 21 percent).
- Salespeople can gain access to key buying influencers (win rate up 28 percent, sales cycle down 21 percent).
- The sales process is aligned to the buying process (win rate up 22 percent, sales cycle down 22 percent).
- Sales and marketing aligned around the customer (win rate up 26 percent, sales cycle down 18 percent).
- Effective first-line sales management is in place (win rate up 26 percent, sales cycle down 12 percent).
In addition to pure revenue performance, the study examined other macro issues that impact confidence and outlook, with the following findings:
- Forty-eight percent of respondents believe that digital transformation will cause significant disruption to business in 2017. It has rocketed to the top of everyone’s list of priorities, well ahead of advancement in AI (27 percent) and currency volatility (26 percent), which come in second and third.
- Perhaps unsurprisingly, those in EMEA fear a disruption in 2017 from currency volatility (41 percent) and Brexit (39 percent) almost as much as they expect disruption from digital transformation (43 percent).
- Diversity pays off: 70 percent of respondents believe that a diversity policy has an impact on the business performance of their organization, and the results suggest that they are right. Companies with a positive track record in diversity have 50 percent better customer retention and 17 percent shorter sales cycles.
- Trust in government is significantly down from last year, with 42 percent saying they trust government less.
- When it comes to making a purchase, people look to the company’s reputation and peers in other companies to give them advice. Social media and the company’s CEO are the least trusted sources.
Customer Retention and Loyalty Marketing Resources
- Why Loyalty Marketing?
- How to Design a Successful Loyalty Program?
- What are the Different Types of Loyalty Programs?
Filed under: Best Customer Management