It’s every manufacturer’s challenge: how to build a forever transaction with every customer you’ll ever have.
Initial product sales are your primary focus, and rightly so – they provide immediate net new revenue, cash flow and market share growth. Though when you turn a single-event sale into a subscription model, the revenue scope shifts to an ongoing relationship, facilitating a forever transaction, and often a customer for life.
According to Mize's industry research, the customer acquisition-retention numbers tell the story:
- Repeat customers will spend an average of 67 percent more with you
- A mere 5 percent increase in your customer retention will yield profit increases between 25 percent and 95 percent, depending on your margin structure
- It costs five times as much to attract a new customer than to keep one you have
- 89 percent of companies view Customer Experience the key factor in driving loyalty and retention.
Warranties and service contracts create the forever transaction reality. Managing them is often the obstacle to overcome. A tangible answer is having Connected Customer Experience platform capability to coordinate all processes to assure a seamless provider-customer connection that maintains your brand’s loyalty among everyone involved.
Mize conducted a virtual presentation on this subject, identifying the features and benefits of this Connected Customer Experience platform for your customers, that’s now available for you to view on-demand. It’s headlined by Robbie Kellman Baxter, best-selling author and Founder of Peninsula Strategies, and Ashok Kartham, Founder and CEO of Mize, relaying 25 years’ experience working with global manufacturers and Fortune 500 companies in delivering enterprise software solutions for Service, Warranty, Parts, Support, and Knowledge Management, where industry and company applicable. It highlights how to construct a successful subscription model for Heavy Equipment, Transportation, Machinery, Durable Goods and Building Materials manufacturers.
This presentation provides insight to start, scale and sustain your subscription business, with practical steps to transform from transaction to membership commerce. You’ll see how to generate a greater share of income through a subscription model, creating substantial value for you and your stakeholders, and how to think beyond product-based revenue.
According to the research data behind this presentation, subscription business growth trends reflect that over the past seven years, subscription companies increasing sales by more than 300%, representing an 18% CAGR. These companies are growing five times faster than the S&P 500 company revenues and U.S. retail sales, and are experiencing 10x sales growth of the DAX (Germany) and ASX (Australia) index entities.
View the presentation’s recording today, to see the feasibility of creating forever transactions, and forever customers.
Tim Nissen has built companies through marketing in categories including technology, manufacturing, energy, commercial real estate and business services.