Many companies today and industrial companies, in particular, are looking for ways to drive organic growth in their business. A path identified by many is increasing the recurring revenue stream by maximizing the lifetime value of their installed base customers and assets.
We hear from many industrial companies that this is top of mind in their organization, but they don’t have a clear roadmap or digital strategy around customer engagement and loyalty.
Increasing recurring revenues requires getting a closer view into your customers and understanding the areas throughout the lifecycle that have the biggest opportunities for growth. Digital innovations are creating opportunities to grow for OEMs by moving the levers in different areas of the business. Your digital investments and strategy should be in lockstep with the opportunity you’re going after.
The Big Opportunity – Customer Engagement
By organizing all of your customer interaction histories from current and legacy systems in a single place – prepping, cleansing and enriching the data than analyzing usage and behavior patterns to identify each customer’s unique “fingerprint” you can drive timely and targeted customer engagement for increased loyalty and organic growth. By getting granular with your customers through data analysis you can drive organic growth through customer engagement in a few key areas:
- Identifying at-risk or drifting customers for churn reduction. Statistics show that boosting customer retention rates by as little as 5% increases profits by 25% to 95%. This shows that manufacturers must implement churn reduction strategies to increase sales and profits.
- Incremental sales from enhancing the share of wallet. Increasing wallet share is a more natural, less expensive, and more efficient way to boost revenue than expanding the market share would be.
- Buffering the cyclicality of new equipment sales. By maintaining loyalty for aftermarket and service sales opportunities, you can protect revenue from dropping new equipment sales.
- Moving to a proactive selling process. By understanding customer needs in a predictive fashion, your sales team can engage customers in a proactive manner. When your reps understand who needs to buy now, no more sitting in a room waiting on the phone to ring.
- Increase the productivity of the sales team. By analyzing usage and behavior patterns, manufacturers can identify predictive selling opportunities. Manufacturers can also understand which customers they don’t need to engage with. If you have an installed base in the thousands, using data to identify which 80-90% of customers at any particular time have no needs will increase the productivity of your sales team by focusing them on high-value and immediate opportunities.
If you are like many industrial companies, having built a very sizable installed base over many years but find that the majority of your customers are not continuing to transact with you as often as they could or should over time. Entytle Insyghts makes it easy for companies to drive recurring revenue growth. By organizing all your customer information from current and legacy systems in a single place – prepping, cleansing and enriching the data than analyzing usage and behavior patterns to identify each customer’s unique “fingerprint” you can drive timely and targeted customer engagement for increased loyalty and organic growth.