It can cost five times more to acquire a new customer than to keep an existing one. And, if you increase your customer retention rate by just 5%, your business profits could surge by as much as 95%.
Looking after your existing customers so that they don’t switch to another provider is therefore critically important to your business’s success. This is especially true across IT, where the as-a-service model predominates.
But what if, on top of making sure that your customers’ loyalty remains intact, you also significantly increase wallet share?
Let’s take a look at this in more detail.
What is Share of Wallet?
Share of wallet (SOW) is the dollar percentage an average customer regularly spends with your company versus a competitor’s. By increasing wallet share you are therefore getting your existing customers to move away from the competition to spend more with you.
Your customer might have purchased their storage and backup solution from a different provider, for example. By adding the same storage and backup solution to complement your customer’s existing buys, you can propose a more comprehensive, and potentially cheaper package, encouraging the customer to switch to you to fulfil more of their business's IT needs.
Very crucially, any additional services that an existing customer buys translate to additional margin gain. This is because the cost of managing each customer remains the same.
How does Cloudmore Help Me Get More Wallet Share?
Here are five ways Cloudmore makes it easier for you to convince customers to grow their spend.
1. Sell Anything and Everything in Cloudmore
Any product or service can be showcased and sold in Cloudmore. This includes one-off buys (of hardware, for example) and subscription services (including IaaS, PaaS, SaaS). Start by adding the products and services that serve your organization’s core competencies and gradually grow your portfolio from there. The more complementary products and services you add to your offer, the more business problems you can solve for your end users. Your customers will subsequently invest more (and become stickier), increasing wallet share.
2. The Cloudmore Service Catalog
It only takes a few mouse clicks to grow your product portfolio in Cloudmore. Simply choose the services that you want to add from our catalog and move them over to your customers’ e-store.
3. Cloudmore Facilitates Up-selling
Cloudmore provides a unified view of customer transactions and engagement. This means that sales can log in to see what’s being bought, when it was bought, the total spent, service usage and so on. Having all of this information in one place, instead of in data silos across different business systems, makes it much easier to spot buying patterns, identify sales opportunities and negotiate things like software upgrades and service-level agreements.
Customers expect a seamless experience, and don’t want to deal with streams of e-mails, invoices and paperwork. Cloudmore eliminates the need for drawn out communications by displaying accurate and up-to-date product, billing and service usage information in a friendly format that customers can access online instantly.
Cloudmore also delivers a self-service solution that enables customers to view, buy and manage their products and services themselves. By easing the user experience in this way, and by promoting things like cost and usage transparency, customers are more likely to trust and build a better relationship with your business – and, the happier the customer, the more receptive they are to new offers.
5. Automation Saves Big Overhead Costs, Letting You Offer Better Deals
Because Cloudmore automates your end-to-end business, your accounting and support costs are significantly reduced, even as you grow. This frees up funds that can be reinvested in offering more deals for less.
Increasing Wallet Share and Protecting (or Growing) Market Share
Cloudmore is designed to help you scale and optimize your business processes, while keeping your operational costs largely static. Scale translates to a larger number of customers spending more money with you, and therefore more market share. The key is to make the most of the inbuilt features Cloudmore offers to derive maximum benefit from each customer relationship as well.
By delivering more comprehensive solutions you can grow your share of wallet and simultaneously increase and protect your market share. Customers aren’t likely to switch to a competitor if they’re getting everything they need, including value, quality and convenience from you.
Would you like to see firsthand how Cloudmore can support your IT business’s growth?