3 Steps To Reduce Installed Base Drift
Understanding your Installed Base and being able to show value to all of your customers that purchased your equipment is key to organic growth through a focus on your Aftermarket. Each organization must know those customers that they have a relationship with (Connected) and those customers that haven’t purchased from them in quite some time (Drifted).
If you look up the definitions to the word “drift”, you can choose both the noun and the verb definition. As for all of us that have managed an Installed Base of past customers, both definitions bring an uncomfortable thought to our day.
Noun – a steady movement or development from one thing to another, especially one that is perceived as unwelcome.
Verb – move passively, aimlessly, or involuntarily into a certain situation or condition
Both definitions bring a challenge to our ability to show organic growth for an organization. In today’s economy, many businesses struggle with organic growth. From an Aftermarket perspective, your Installed Base is your market to provide organic growth to your business.
We can’t let our customers (our market) drift away! So what do we do?
There are 3 immediate steps we can take to remedy this situation.
1. We first must define what is a drifted customer. That can and should be done by each organization. Many organizations define a “drifted customer” as one in which there has been no financial transaction in the last 12 months. The key to this definition is to base it upon a financial transaction. Just reaching out to your customer to “see how they are doing” or “check in” isn’t good enough. You must be rewarded for the value you bring with a financial transaction. You should choose the right timeline for this definition for your business and those assets in your Installed Base.
2. Each organization must create a set of offerings to their Installed Base. One example of this structure would be the pyramid above in which an organization can show increasing value to their customers depending upon their need. By offering a variation of offerings at different levels, you will increase your chances of staying connected with more of your Installed Base. Now that you have this understanding in your organization, what’s next?
3. It is now imperative for Sales and Service leaders to provide a tool that your sales team can use to always understand this and bring value back to the relationship to connect with that customer and prevent the drift.
At Entytle, our Installed Base Manager helps you do this with literally just one click! See the screenshot below that allows instant review of any drifted customers!
Now with this tool, you can map your Installed Base and then filter by drifted customers. The output from this action can quickly be put in the hands of your proactive sales teams to work on getting back in front of this important market…your Installed Base. By having the items in your portfolio and this tool to target those customers, organic growth is just around the corner!