The next day I called the broker and gave him all the details of what we needed, even down to the color, make, and model. He told me he would call me back in a few days. As promised, a few days later, he called and told me he could drop ship our brand-new Dodge Durango to a dealer nearby for a small upcharge — I was sold. My friend was right. It was easy and painless. 

But not for long…

The easy and painless part did not last long. While I was out of town, my wife called me from the dealership where the car was shipped. I picked up and heard her say, “It’s purple!” I was unsure what she was referring to, so I asked her to clarify. “The Durango,” she said. “It is Barney-the-dinosaur purple, and there is no way I am driving this thing off the lot!” 

We eventually got it sorted out and did not end up driving a purple Dodge Durango. Still, while the initial buying experience was painless, the service and delivery itself were a disaster, ensuring that the next round of car buying would be much different. If I were going to use a broker, it would not be the one I used for that purchase.

This story is similar to what many B2B buyers go through, highlighting a key element in customer retention. Often, customers are either won or lost not at the point of renewal but during the journey’s delivery and adoption phases, which are critical for improving retention.

New stakeholders

In B2B marketing, various stakeholders may get involved across the different stages of the buyer’s journey. Sometimes, you will only find end-users during the delivery and adoption phases — and they did not necessarily have a seat at the table in the initial stages of the process. 

Because of this, brands must understand the expectations of these new stakeholders, listen to the users’ needs and do what can be done to help them improve in their roles. This way, you can tailor delivery and help increase adoption across your customers’ organization. 

Dig deeper: Buying group marketing: The next evolution of ABM

It’s a hard hill to climb 

Providing a great B2B customer experience must begin long before a purchase is made. However, the experience that occurs once a prospect becomes a customer is crucial to building loyalty. The first stage of that journey post-purchase is delivery. 

Many B2B customers have shared how their purchase experience turned sour due to a poorly executed service and support strategy, which impacted adoption. A low adoption rate across the organization will lead to your customers looking for an alternative over time. 

Brands that stumble out of the gate in the delivery and service of their product or service will have a very hard hill to climb in trying to win back their customers’ goodwill and positive outlook. 

I was once involved in a long sales cycle where, after many conversations, a close call of losing the deal and several proposal revisions, we were chosen by the client as the vendor of choice. Two weeks later, we had our kick-off meeting with the key stakeholders and her team (yes, there were new faces that were not a part of the buying process). My services team was present, and after some introductions, they took over.  

As the call went on, I began to read the body language of our new customer, which was not positive. I received a text from my client almost immediately after the call saying, “That did not go well, and I expected more.” She was not wrong, and suffice it to say the entire relationship was a struggle from that point forward, and they chose not to renew. It was a hard lesson for all of us, but stumbling out of the blocks cost us a client. 

Dig deeper: The B2B customer journey is set on a digital track

A prerequisite for customer expansion 

Maximizing customer lifetime value (CLV) should be a priority for organizations looking to grow. I discussed this in more detail in my article from last month. To improve CLV, many organizations immediately implement upsell and cross-selling strategies. While this is necessary, it should not be the first step after the initial purchase. If done too early in the journey, it can reinforce a bad experience.

If you want to win the opportunity to expand your customer relationship and maximize CLV, understand that activating your customers through delivery and adoption is key. When done correctly, it continues the thread of sterling experience and further drives custom loyalty, making it more likely that your customer will want to explore your other products and solutions. 

I was delighted that 45% of brands stated they plan on devoting “more than half of their marketing budget on customer retention.” I hope these budgets will be invested wisely and they will understand the critical path that needs to be taken to win the game of retention and increase their chances for organizational growth. 

The post Where B2B brands win and lose on customer retention appeared first on MarTech.

He continued, “If we simply were able to renew 10% of our customer base, we would drive $40 million in incremental revenue this year.” He had done his homework and got the attention of everyone in the room.

Data disaster

While he was right in his analysis, the biggest obstacle to focusing on the customer base was the state of their customer data. To put it nicely, and by their admission, it was disastrous. However, his point was well taken. They could focus on new customer acquisition, which is essential, but they had a more significant opportunity if they focused their marketing efforts on their current customer base.

And this is where I see many marketers struggle — engaging customers across the full customer lifecycle. So often, when I speak with CMOs, they focus on demand generation solely in the context of new customer acquisition.

What they are missing is maximizing customer lifetime value (CLV) which can only be done if you build the relationship at every stage of the customer journey and continue to nurture that relationship after the initial purchase. (Note: Engaging customers throughout the entirety of their lifecycle actually begins before they buy anything.)

Defining the customer lifecycle 

Much has been written about the customer lifecycle, and many marketers have documented the various stages that are a part of that lifecycle. I use my own (represented by the image below) with clients.

To engage, nurture, convert, retain and grow your customers, there has to be a concentrated effort at every stage, which requires a unification of marketing, sales and customer success/support. 

Orchestrating the customer journey 

I have spent a lot of time working with clients to develop and implement their customer journey orchestration approaches. (I prefer the term “journey” over “lifecycle.” Lifecycles indicate that there is an end, which is not something you want for your customers.) Whenever I talk with a prospect or client about orchestrating the journey, they immediately discuss the technology.

I am a big fan of technology, but it is not a strategy and will not get you any closer to end-to-end customer engagement. Technology’s role is to enable your orchestration strategy — that’s it. You should not invest in any more technology until your customer journey engagement strategy is defined. 

So if customer journey orchestration is not a set of technology, what is it? Here’s the definition I use: 

• “Customer journey orchestration is a carefully defined strategy that delivers meaningful customer engagement at every stage of the customer journey. This strategy is then enabled by technology.”

Dig deeper: Customer journey orchestration: What it is and why marketers should care

This time with feeling

The keyword in my definition above is “meaningful.” In B2B, it is often easy to lose sight of the fact that we do not market, sell and support accounts. We work with people, and people want a great experience at every stage of their journey. We demand this in our consumer lives, and that human desire for a great experience does not disappear just because it is in a B2B context. 

Organizations must understand what customers want to feel and experience at each stage. This becomes all the more challenging in B2B, where you typically have multiple roles engaged at various parts of the journey, all with different perspectives, motivations and behaviors. This is why marketing should lead the way in developing buyer insights to inform the strategy for every stage of the customer journey. 

These insights should include personality traits and an understanding of what customers expect and desire from the brands they engage with. How do you collect these insights?

• Talk to your customers and ask them. If this is not a continual practice in your organization, I highly recommend you make it one. 
• Sales and customer success have a treasure trove of insights that they can share to help shape your strategy. 
• Research into the industries in which your customers operate will provide additional information. Keep in mind that this is not a one-time exercise, it is a continual process.

Making the case for full lifecycle (meaningful) engagement 

One thing I often hear from executives is how to justify the cost of full journey engagement. The first step is changing the language from cost to investment. And the investment in delivering meaningful engagement will certainly pay off. A Harvard Business Review study revealed the following for both transaction-based and subscription-based businesses: 

• Transaction-based: Customers with the best past experiences spend 140% more than those with the poorest past experiences.
• Subscription-based: Customers with the best past experiences have a 74% chance of remaining a member for at least another year; customers with the worst experiences have a 43% chance of being a member one year later. In fact, those who gave the highest CX scores were likely to remain members for another six years.

This significant ROI proves engaging and delivering a world-class experience at every stage of the journey is now a bigger competitive advantage than price or product. 

To begin this process, start with: 

• Mapping out the full customer journey (use the graphic above if needed).
• Identifying the customer roles that are active at each stage.
• Defining the experience they expect.
• Aligning their expectations to the roles in your organization responsible for the delivery of that engagement and experience. 
• Identifying technologies that will be needed to enable the engagement strategy. 

In 2015, I wrote a book titled “Driving Demand.” While plenty from the book still applies, I realize that it is not enough for organizations to simply drive demand for their product or services. To achieve growth, they must look across the full spectrum of their customer lifecycle and drive meaningful engagement. This is when organizations win and have customers that become advocates.

Next month, I will write more about the challenge of retention and how organizations can improve retention by focusing on a key segment of the journey. 

The post Why B2B brands must focus on orchestrating meaningful customer engagement appeared first on MarTech.