Customers come first. That is the mentality that businesses strive to adopt, especially when providing a service. However, have you ever stopped to think about what the long-term effects are when you start putting them first? Improving customer success leads to improving your value as a company. I am going to list the three areas to focus on as a Microsoft partner if you are interested in raising your valuation through customer strategy.
1. Customer Growth with recurring revenue
If you can grow revenue on a per–customer basis, you are winning! The best way to grow your client base is to turn your already existing customers from project-based into annuity-based. Recurring revenue year to year will ensure that you have a stronger business. Microsoft recommends that you should move your customers to a subscription-based service. They give the example of moving an on–prem Microsoft Office client to Microsoft 365 or add Managed Services onto Microsoft Azure contracts. You can achieve this through Sky’s the Limit: Triple Play. Microsoft partners can sign up and start earning cash today by reselling CSP SKUs. Transitioning your customers to the cloud can not only increase your profitability but also drive your recurring revenue up simultaneously.
Switching your focus to recurring revenue means you need to produce a more focused customer strategy. You will need to retain customers, so keeping them satisfied and always aiming for quality is key. An average of $1.6T is lost every year in the U.S. because of poor customer service! That statistic alone should be enough of a driving factor to ensure that your company is always offering value to your clients.
Your Insights Dashboard in the Microsoft Partner Network provides you with cloud insight data that can provide you with details on all your customers. You can use this data to target your high propensity customers and on-prem customers.
2. Diversified repeat customer base
It has been proven that the more varied your services are, the stronger your company will appear to investors. Having customers of varying sizes, in varying industries, and with varying needs shows that your business can handle anything and everything. The more you branch out to new industries, the more diverse customers you will attract.
To ensure you are on the right track in this area, an organization-wide buy-in must take place. Microsoft uses the example of offering the same level of service and value in Mumbai versus Kansas City (yay, DCG’s hometown!). Being successful at this would require a customer-first culture, one that is directed from the very top and enacted at the lowest rungs of your company.
3. Strong brand and reputation
For tech companies, word-of-mouth referrals are the number one way to gain new clients. This includes social media and digital channels, as well. To establish a respectable brand, values need to be defined as well as executed. 96% of customers around the globe say that customer service is an important factor in their choice of loyalty to a brand. By partaking in positive customer interactions and forming strong relationships, your company’s reputation will skyrocket.
Why is it so important to focus on customer success?
As you can see, the economic impact that building a customer-first culture has is apparent. Investors and potential partners will always focus on the numbers, and the numbers are improved by creating long term relationships with your customers. When your clients are successful, you are successful!
If you have any questions regarding any of the Microsoft platforms, please reach out to us! We have a team of talented Consultants, Developers, and Solution Architects who are ready to help. Send us a message, here.