If you’re like most companies, you focus the lion’s share of your growth budget on demand generation and customer acquisition. But the sale isn’t over just because your prospect becomes a customer. There’s still ample opportunity to grow revenue from customer expansion—nurturing your existing customer relationships, helping them see the value of expanding with your solution, and continuing to build loyalty over time. Consider these stats: Analysts estimate that 70-80 percent of the average company’s annual revenue comes from existing customers in the form of renewals and upsells. Yet, the majority of companies allot only 10-20 percent of their sales and marketing budgets toward customer expansion. In other words, the majority of sales and marketing spend goes to customer acquisition, which only amounts to 20-30 percent of your customer lifecycle. Clearly, there’s a significant, yet overlooked opportunity for businesses to tap into customer expansion as a growth engine. Anton Rius from Corporate Visions shares 3 ways to capitalize on the customer expansion opportunity, plus shares 4 additional resources for taking your customer expansion game next level in the post linked below.
In this Heavybit Speaker Series, we were thrilled to host David Skok, Partner at Matrix Partners. David discusses why most companies end up building vendor centric sales processes that don’t work. He outlines a step by step approach for creating a buyer centric funnel centered around “getting inside your customers head” and identifying key “triggers” and “wow moments”.
Customer development is a term from the Lean Startup methodology that refers to the process of talking with and surveying potential customers to build a product that solves a real need. Customer development is considered a key component of finding product/market fit which is the essential foundation of sustainable growth. Learn how to do customer development to help you find product/market fit.
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