The Right Side of CRM – Don’t forget the Customer!
By Dean R. DeLisle
We’ve seen it already this year. A company spends all that money to get the lead, then the appointment, go for the close and blow it. What do I mean? Well, I was with a client about a week ago and they were jamming so many contracts through the hopper that they were increasing their drop out rate by 20%! Now sales increased by about 22%, so now your saying well they are up by 2%. That would be nice if that were truly the case. Unfortunately, their retention also shifted. While they were dropping the ball on those new customers, their existing customers were feeling the pain! Retention was previously at 98%; in the last 60 days it had shifted to 82%.
After all is said and done, they can save most of the new business and customers. They had to start an immediate campaign to rescue the customers that were leaving and put another person in their contracts department to handle the increased workflow. At the end of the day total loss should only be about $60k. It could have been a lot worse!
They now have included some automation in their transition from lead to customer close. Adding metrics and some key automated reports now provides better visibility, for all levels of management, of how things are moving through the contract and close cycle. This way, they can make the necessary shifts before any other losses take place.
Maybe the key is – With an increase of visibility and automation we can all work a lot less and make a lot more!
Stop working so hard!