During the COVID-19 pandemic, many organizations were in a tough spot. Securing new customers in 2020 and 2021 often meant offering discounted pandemic pricing as an incentive to sign a contract. In fact, over 30% of SaaS companies report offering a discount on list pricing during the pandemic.
But now, customers have become accustomed to the lower prices. As account managers approach renewal conversations, how can they demonstrate value, ensure customer success, and make the shift back to list pricing for their services?
8 Ways to Show Even More Value for List Pricing
After more than a year of discounted services, customers may not be expecting a price increase. After all, they’ve learned to equate your exceptional customer service with the current price they pay. But as pandemic discounts disappear, your company is at risk of losing customers and prospects to sticker shock.
In 2022, account managers need new tactics and strategies to consistently sell the value of their solutions to customers. Here are the best ways to show your service’s full value to price-conscious customers this year.
1. Provide Seamless Onboarding
Customers can’t succeed with your product without supportive onboarding and adoption processes. Yet, these are areas that many organizations get wrong when bringing on new customers. Showing new customers strong onboarding metrics helps differentiate your offering, boost customer confidence, and exemplify your exceptional service.
Companies need reassurance that you’ll support them from day one. That way, they know they can gain the most value from your product. But companies you’ve onboarded already may forget how seamless your onboarding process was.
At renewal time, have metrics ready to show how you supported their adoption process throughout the last year.
Measure successful onboarding by tracking and sharing data on:
- Onboarding completion rate within the first 30-60 days
- Percentage of users activated in the first 30-60 days
- The average number of days to the first login for new users
2. Assign a Dedicated Customer Success Manager
Customers are happy to renew when they see consistent value. With a dedicated Customer Success Manager, you can offer that value even more frequently.
As the customer’s main point of contact, a Customer Success Manager offers any support they need to take full advantage of your product. They work hands-on with each client to measure and ensure ROI. Plus, they align with teams across the organization to create the most cohesive customer journey experience. By assigning a Customer Success Manager, you can easily showcase value all year long.
3. Measure Product Adoption
Many account managers use adoption rates to reinforce a client’s ongoing success with your service. But did you know they can also use those numbers to sway prospects who are on the fence? High adoption and usage rates are compelling for new customers. Seeing your success with a business like theirs is the perfect way to help them imagine their own forthcoming success.
Measuring how and when your customers use your product shows what’s working and what’s not adding value. That makes it easy for your teams to intervene and restore usage rates if they slip. Plus, these metrics help product managers make your offerings even more valuable to customers.
Measure successful adoption by tracking:
- % of ongoing active users/licenses vs. total capacity planned or purchased
- Usage or consumption rate %
- Feature usage
4. Identify Performance Gaps with Health Checks
Usage metrics offer valuable insight into your customer’s onboarding, adoption, and overall experience. But you need to collect these metrics regularly to gain that insight. Regular health checks can help your team proactively address customer and performance issues.
Tracking these metrics throughout the year helps your teams offer consistent, stellar service and value. They can even help you predict upcoming customer needs, so your team knows when a client is ready to scale or when they need additional services.
In your health checks, measure:
- % of health checks completed within the year
- Number of churn risks identified vs. resolved
- Number of health issues (or support tickets) opened vs. resolved
- ROI achieved
5. Track Everything in a Connected CRM System
Most companies already track performance and customer information in a CRM system. But if you aren’t already, now’s the time to start. A connected CRM breaks down silos and streamlines the customer journey experience. By keeping all your customer data in one place, your entire organization gains insight into every stage of the customer lifecycle.
6. Get Feedback from Your Customer
Customer feedback is critical to understanding why your customer isn’t renewing with your solution or service. Attrition surveys offer deeper insight into why your customer didn’t see enough value to continue at list price in 2022.
Learning the voice of the customer can strengthen your sales process. With this insight, account managers can ease common customer worries and provide exceptional value upfront. But the voice of the customer is valuable far beyond sales, too. Customer feedback also helps strengthen your processes and enables you to make better product development and business decisions.
7. Make Contract Renewals a Nonevent
Showing value throughout the year takes the pressure off renewal conversations. Still, that doesn’t mean you can neglect those conversations. Start viewing contract renewals as a nonevent by changing your team’s habits.
First, start your conversation long before the renewal cycle begins. Maintain an ongoing conversation with your customer up to four months in advance of your renewal date. In these conversations, focus on calculating ROI to show the benefits your service and maintenance plan offer. Then, show what the customer will miss out on if they choose not to renew, like upcoming features or software updates. This is a great time to sell a multi-year deal with a discount, too!
8. Outsource to Improve the Customer Lifecycle
Strengthening your processes is key to continue driving value. Instead of trying to scale internally, outsource customer success and renewals management to cover your entire install base and support your employees.
Dedicated teams and time-tested processes make it easy to expand your capabilities and maintain clean data. Plus, outsourcing renewals management can have a big impact on your bottom line, providing a higher volume of cash flow and better performance metrics. With outsourcing, you can reduce overhead costs and offer an exceptional, consistent customer experience.
Overcome Pandemic Pricing with Confidence
Many organizations are experiencing 2022 customer success challenges. Topping the list is getting current customers back to paying list price after pandemic discounts. This year, showing your value is more important than ever to meet your renewal metrics. With these new tactics, you can conquer pandemic pricing, prove your value, and take on renewals with confidence.
To learn more about how you can consistently deliver value, schedule a call to speak with a ServiceSource expert today.