Shifting Focus from Acquisition to Consumption to Drive Long Term Cloud Success
The outcome of any market transformation is an immediate response from companies who want to build their presence and establish market share. As the start of the Cloud revolution, technology companies initiated an arms race of investment to acquire net new customers across their portfolios.
To survive today, Cloud technology providers must shift their focus from thinking solely about acquiring new customers, to supporting customers immediately after they win them. With sales representatives zeroed in on new customers and not mindful of existing customer success, a significant percentage of customers are likely to discontinue use of Cloud technology with more than half of all IT projects failing, according to CIO Magazine.
To remain successful in the Cloud market, it’s critical for Cloud providers to invest in sales and support activity that drive Cloud consumption – not just acquisition – and deepen customer relationships.
3 Steps Towards Cloud Technology Consumption
- Recognize the New Buyer’s Journey: Gain an understanding of your buyers’ needs post-sale. This requires a different skillset from the salesperson who acquired the customer; the consumption seller must have a deeper level of product and technical fluency.
- Identify Opportunities to Upsell + Cross-sell: Existing customers who already perceive value in deployed solutions are more open to hearing about additional solutions that will have a positive impact on their businesses. Cloud sales representatives should identify core areas of the current solution and tailor efforts based on the lines of the business that they think will benefit most from expanding use of Cloud technology.
- Expertise in Transitioning Business Functions from On-Premise to Cloud: As part of the upsell and cross-sell initiative, customer success teams need expertise in transitioning business functions of current customers from on-premise to Cloud. It’s important to have background familiarity with Cloud technology the customer previously purchased, as well as the skillset to advise and enable migration as part of the customer success process.
Nurture Leads to Growth
By using unique approaches to workload prioritization and consumption enablement, Cloud companies and service providers can nurture new customers into loyal, growth customers and reduce the need for marketing teams to “buy back” market share to replace abandoned customers.
You will also save money! According to Gartner, it costs five times as much to attract a new customer than to keep an existing one satisfied, and Bain and Co. found that a 5% increase in customer retention can increase a company’s profitability by 75%. The key for Cloud technology companies is finding the right partner who can help approach and maximize customer success opportunities and create a buyer journey that is tailored to the customer’s specific needs.