Revenue pressure is at an all-time high—whether you're an established telecom provider or a scrappy SaaS startup. 2020's seismic impact will linger well into the coming months and everyone is struggling to make up for lost time. If you are looking exclusively at your Sales team to drive KPIs like monthly recurring revenue (MRR) you might be missing a major opportunity.
The shortcut to higher MRR runs through Customer Service
One of the major culprits in declining revenues is customer churn. The cost of continually finding, acquiring, and on-boarding new customers is substantial—not to mention how long that process can take.
Stopping the "leaky boat" of customer churn—by attending to issues of Customer Service— should be a first-priority for companies where this is an issue.
To see why, we can look at a typical customer journey that encompasses Sales, Service Management, and Customer Success phases. As the figure below shows, you can accelerate (or bypass altogether) several steps in the process by focusing on better service which can boost KPIs in retention, cross-sell and up-sell areas.
Methods for achieving this kind of acceleration can be gathered under the discipline of Service Optimization, and Vivantio can provide some excellent evidence for starting a Service Optimization effort. (Download our 35-page report here, for a start!)
A 73% revenue boost—from your Service Team
The venture capitalist and business author Tomasz Tunguz published an analysis of how achieving even a 5% negative net churn rate could impact the customer value for a SaaS provider. In his example, the average customer’s monthly recurring revenue (MRR) increased by 73%.
Vivantio can help you quickly and affordably develop an infrastructure—based around a Unified Service Management Platform—to support the kind of Customer Service that delivers on this promise. We're especially adept at helping Customer Service/CX leaders within companies that manage multiple teams or support multiple brands.
To learn more or request a live demo, click here.