Cisco Blogs

Cisco Blog > Partner

Growing Customer Lifetime Value: Here’s the Secret Sauce…

Your customers are the most important drivers of growth for your business. They’re often the reason new clients seek you out, and they serve as the source for post-sale opportunities and recurring revenue. It’s the simple truth.

But what’s also true is that in today’s digital age and dynamic business environment, where trust and loyalty isn’t what they used to be, maintaining customer health can be challenging to say the least.

So, what’s the “secret sauce” to staying on top of customer expectations and growing the value of your installed base?

The answer is all in how you manage your customer data. Clean, actionable data intelligence can help you deliver greater value to the customer, create personalized experiences, accelerate revenue and profits, and serve as the primary catalyst for building customer lifetime value (CLV).

The Ultimate Goal: Expanding Customer Relationships

Growing CLV may mean different things to different people, but I think of it first and foremost as improving the end-to-end customer experience.  It’s the concept of serving customers well beyond that first deal and addressing the full lifecycle across all customer touch points. Along the way, customer satisfaction is improved, and for any sales organization,  there’s no denying that retention is tremendously important. Think about this:

  • Cost: Acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one. (Source: Harvard Business Review )
  • Profits: Increasing customer retention by 5% can increase profits by a whopping 25 – 90%. (Source: Harvard Business Review/Bain & Company)
  • Value: 82% of companies agree that retention is less costly to execute than new logo acquisition, supporting the idea that ongoing profit from a customer lifetime is higher than any one single transaction. (Source: Forbes)

Your Greatest Limiting Factor: Bad Data

There are many roadblocks to CLV growth, and poor data quality is the top limiting factor today. Disparate data along with outdated, incomplete or inaccurate records can hurt communications, resulting in customer engagement that misses the mark, or sales opportunities that slip through the cracks.

Growing CLV requires that a sales organization effectively manage the data residing in their CRM, ERP, pricing, point of sale, entitlement and other systems. Aggregating and cleansing these disparate data sources to make the information complete and actionable is critical to providing a full 360-degree picture of the customer lifecycle.  Enriched, actionable data can enable your team to know precisely who to reach out to and when, with a message or offer that addresses the customer’s specific needs at that point in time.

Read More »

Tags: , , , ,

Cisco Partner Weekly Rewind – February 5, 2016

Cisco Partners Weekly Rewind Banner-650

Each week, we’ll highlight the most important Cisco Partner Ecosystem news and stories, as well as point you to important, Cisco-related partner content you may have missed along the way. Here’s what you might have missed this week:

Off the Top

You Spoke: Big Data Analytics Drive Faster Time to Services Quotes

Throughout the year, our partners provide feedback to us about their experience doing business with Cisco. Well, as you know, it’s simply not enough to just gather feedback; it’s our duty to you to report back on how we’ve listened and acted on your input.

Our We’re Listening Blog Series allows us to do just that. Check out the latest entry, which discusses improvements around the services ordering process based on customer and partner feedback.

Enroll for VIP 27

It’s that time of year again. Partners can now join our latest period of Value Incentive Program.

VIP 27 offers you the chance to earn rebates when selling targeted Cisco products, architectures, solutions, and services within a six-month rolling period.

The enrollment period has begun, so make your move now.

Good Reads

In the News

Read More »

Tags: , , , , , ,

Protecting Innovation

Earlier today the International Trade Commission issued a preliminary ruling in the first of their ITC investigations related to Arista’s systemic copying of Cisco’s intellectual property. This decision represents the beginning of the end for Arista’s systemic copying of Cisco’s intellectual property. Please read Mark Chandler’s blog for additional information.

Tags: , ,

Cisco Partner Weekly Rewind – January 29, 2016

Cisco Partners Weekly Rewind Banner

Off the Top

Hi everyone! I hope your week was a good one. Just a quick reminder – I would love to hear your feedback on how I can improve this blog. Please leave your thoughts in the comments section at the end.

Now, let’s get to the stories!

Seven Tips for Taking Your Business to the Next Level from Karin Surber

Karin Surber is at it again.  This month she offers advice on what you can do to drive business in the new calendar year.

With seven tips, she’s sure to teach you something new! Find out if you are already doing what she suggests in her latest blog.

Enroll Today for VIP 27

It’s that time of year again. Partners can now join our latest period of Value Incentive Program.

VIP 27 offers you the chance to earn rebates when selling targeted Cisco products, architectures, solutions, and services within a six-month rolling period. Eligible offerings include Collaboration, Data Center, Enterprise Networks, Security, Cloud and Managed Services, Cloud Services Reseller and Software as a Service (SaaS).

The enrollment period has begun, so make your move now.

Good Reads

In the News

Read More »

Tags: , , , , ,

Start the New Sales Year with a Bang: Seven Tips for Taking Your Business to the Next Level

boyThe beginning of each year is the perfect time to start fresh with a new outlook and approach for the coming months. Make the commitment to consistently do those things that differentiate you from your competitors.

Follow these tips to kick your sales up a notch in 2016:

  1. Analyze your customer and prospect base and schedule your time based on where you can have the biggest impact. Most of the time, 80 percent of your sales will come from less than 20% of your clients. Identify where those opportunities are and plan your time accordingly. Focus on the clients that really matter–the ones that can make your year and stop spinning your wheels with the little guys. Unless a prospect has been willing to provide you with some information, they’re only a cold prospect. Don’t let them take your time.
  1. Prioritize your existing customers as your best prospects. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% (Marketing Metrics, 2013). Cross-selling and up-selling to your install base are your biggest opportunities for success. You’ve earned credibility there – leverage it.
  2. Establish a consistent communication cadence with your customers. Carve out time every single week to contact your existing customers and prospects. Establish a routine schedule for each prospect and stick to it (weekly, monthly or quarterly). Your customers will be much more likely to think of you first when the next opportunity arises if you are the one keeping in touch instead of your competitor. Use a mix of phone, mail and email to maintain contact.
  3. Become an inquisitive seller . Ask questions of your clients. Listen carefully. If you are talking more than 50 percent of the time, you are talking 10 times too much. Your job is to probe and understand what the prospect’s problems are so you provide solutions that are tailored to each one.  You will be the preferred vendor in a competitive economy if you are a good listener.
  4. Send hand-written notes. This may seem old fashioned, but it happens so seldom now that it can make a big impact. Send a thank you note after each purchase to let your customers know how much you appreciate them and to further develop the relationship.
  5. Get active in your business community. Join associations that dovetail with your best prospects’ interests. Volunteer for industry committees and network with this select group of high-value targets. Rise to the top of these organizations to generate deserved prestige in your industry. The orders will flow in. People like to buy from winners.
  6. Commit to being an ongoing learner. Don’t let your skills become stale. It’s important to continue to develop your skills and knowledge base on an ongoing basis to keep up with industry trends. Complete a minimum of ONE learning opportunity each quarter. This will allow you to maintain your relevancy and continue to bring added value to your customers.  Many training courses are free and available online or even on demand to fit within your schedule.

Read More »

Tags: , , , , ,