Finding qualified leads is debatably the biggest challenge for Sales and Marketing teams. However, if we look at a typical marketing budget, there is rarely a line item for lead generation. While we know that this is an important goal for all Microsoft partners, how much of a company’s budget is spent on custom retention? This blog explains why customer retention should be your main focus when dealing with lead generation.
Microsoft is the first to admit that most of your qualified leads should come from customers that you already have. The success rate of selling to an existing client is 60-70% while selling to a new customer is only about 5-20%, per Outbound Engine. That being said, when it comes to marketing efforts, you should focus on spending three times as much to retain your customers rather than fish for new ones.
The Top 5 Lead Generation Tactics:
1. Onboarding campaigns
Microsoft recommends thinking of your onboarding process as a campaign. One way to increase retention is to ensure that your customers have completely adopted your subscription services. For example, if your customers are not using Teams, and that’s something your company is involved with, it will be difficult to sell them your Teams add-on service. If you start to track usage and enable your customers with the tools they need, they will be able to get more end users onboard.
2. Use your data
You already put in the work to gather information about your customers, so why not improve your lead generation process? You can use the data to determine the common characteristics of your best customers. This can also help you target marketing efforts to new prospects and current customers. For example, do your Microsoft 365 customers using Teams ask for more functionality? You have the insight for your customers, and that cannot be wasted in today’s competitive world.
3. Marketing automation
One word – nurture. Your sale doesn’t end when you close or through implementation. The Customers for Life sales cycle is a continuous figure 8 where customers are given the opportunity to purchase more of your products and services. Make sure your customers always know about your full suite of products and let them know when you launch a new one.
4. Don’t forget your website
Your website is your number one sales and marketing tool. It should not only target prospects but your best customers. Customer service should be easy to find. Add a customer portal to track service calls and a chatbot. Also, try taking the Customers for Life philosophy and make sure it’s implemented throughout your website.
We know asking for referrals is never fun, but it a major source for leads. Creating a referral program can help because it can run itself. You can automate it and make it as easy as possible for customers to refer to someone. Also, ALWAYS thank them for their advocacy.
Finding the balance between marketing to new prospects and current customers can make your marketing resources that much more effective. Applying lead generation strategy to current customers will help reduce your reliance (and budget) on gaining new customers. However, it will remind your customers how great doing business with you is and improving the chance they stick around in the future. You can check out the US SMB Partner Hub for more information.
If you are looking for a team of experts to help improve your sales and marketing, we are here for you. We also have a referral program set up already and would love to speak with you to help your gain insight into how it works. Contact us today!