Conventional wisdom says, “if you want to grow revenue, you need to get new clients”. Not necessarily. Research shows that providing the best possible experience for current customers is a much stronger strategy.
According to Gartner group, recently published in CMO Online:
80%of your future profits will come from just 20%of your existing customers. Additionally, existing customers are much easier to sell to. In fact, upselling to an existing customer is 60-70% close rate – much easier than finding a new one.
With over 30 software companies as part of the Perseus Group, we find this to make a major difference in our revenue leaders. As a result, site visits have become one of our best practices used by software companies across North America and Europe.
The story of this best practice began with a software company with 14 customers, each paying $100,000 in annual license fees. Site visits are scheduled on an annual basis with each one of their customers. However, even software companies with lower licence will find that this tactic helps grow the business.
The ROI on sending 2-3 people for a 1.5-day site visit is very high since there are many revenue opportunities, not to mention the chance to mitigate risk.
Why Site Visits?
Two people can look at the same thing and see it from a completely different perspective. For site visits, this is by design.
For the customer, they will see the visit as a way of get helped and have their concerns addressed.
For you, the visit is essentially a sales call designed to improve the bottom line. From a revenue standpoint, it is an opportunity to sell modules, training, hardware and custom work. Seeing your customer live also helps you protect against potential revenue loss because you will see clear signs if the relationship is in danger of ending.
Want to learn more about Site Visits?
Download a complete guide that will help you plan for site visits.