How you sell has a huge impact on customer retention. Here are 3 proven ways sales can start boosting retention right away...
① IDENTIFY THE PROSPECT'S PRIMARY BUSINESS OBJECTIVE
Let's face it, some customers are bound to fail because they are a bad fit. A large share of customer churn comes from selling to customers who will not be able to get good results from the solution. But how can we know who's a bad fit? It's simple...
👉 If the result they expect is not the one your offering provides then they are NOT a fit. 👈
► Before you start selling them anything, figure out what they are trying to achieve. Ask, "How will you know that this has been successful?" If they don't want or can't get the results we drive, then it's better to know before the sale.
② DON'T RELY ON DISCOUNTING TO CLOSE DEALS
The data on this point are definitive: discounting is a major driver of customer churn. Our data show that discounted customers have HALF the average lifespan of those that paid full price! And it gets a lot worse with deeper discounts.
► The key to selling without discounts is to demonstrate the value of your proposed solution. Remember...
👉 It's not about what it COSTS, it's about what it's WORTH! 👈
That's why the question from ① above is so important: Show the prospect how they will achieve their objective and why their results will easily justify the full cost.
③ STOP USING FREE TRIALS
Free trials are one of the biggest drivers of customer churn. Our data reveals that free trials cut the average customer lifespan by more than half! The problem is...
👉 Free trials make customers lazy. And when they don't engage and change their behavior, they don't get results. 👈
► The unfortunate truth is that free trials also make sales teams lazy. The solution is to put in the effort to build a compelling value story.
Start with the key question, "How will you know that this was successful?" and work your way back from that. Show them what they will have to do and how your company will support them all the way with all the tools and expertise they'll need to win.