Using IT Asset Management to Increase Customer Retention
We’ve seen it time and time again, when a client has a long-term relationship with their IT supplier and everything seems to be going quite well, when suddenly, along comes a new IT support guy who uses a different supplier. The client vanishes and never comes back.
The cost of new customer acquisition can be quite expensive and this is typically where businesses focus a lot of effort. 44% of companies have a greater focus on new customer acquisition vs 18% that focus on retention. It’s quite mind boggling when you think that it costs 6-7 times more to attract a new customer than it is to keep an existing one. It’s also worthwhile mentioning that repeat customers are likely to spend twice as much as new customers.
Let’s do some math on that…
Annual Customer Growth Rate = 20%
Customer Retention = 90%
Growth Rate = 10%
Annual Customer Growth Rate = 20%
Customer Retention = 70%
Growth Rate = -10% (loss)
It’s clear that Company B will struggle unless is invests a significant amount of resources into attracting new customers (at 6-7 times the cost).
So if the goal is to retain existing clients we need to consider some strategies.
According to Bri Williams from Smart Company, there are 5 reasons why customers stay with your business
We are going to explore these reasons and how offering your clients a service such as Vistrack – IT Asset Management can assist you in customer retention.
According to Williams, customers will stay with you if you can offer them something unique. So offer them something that your competitors are not.
With Vistrack’s integrated IT asset management system, you direct access to your customer’s IT Hardware and Software database. This gives you the ability to provide advice and support with absolutely clarity. As just one example… You have the ability to search their aging hardware and target your communications to focus directly on risk factors within their company.
Compare the level of service support in the following scenarios...
Scenario 1 – Without Vistrack
You: “Henry, is there anything you need?”
Henry: “I don’t think so”
Scenario 2 – With Vistrack
You: “Henry, I have noticed that 5 of your laptops will reach the end of their expected life next month. If these are important I would recommend purchasing another 5 and using these as backup laptops”
Henry: “Thanks they are essential to be running at all times. Please replace them”
Traditionally, increasing the customer satisfaction doesn’t tend to result in additional sales as much as dissatisfaction will result in your customers leaving and ultimately a loss in sales. The reason is that satisfaction is what we are accustomed to and it is expected. Think of it like taking the rubbish bin out. If you visit a friend’s house and they have taken the rubbish bin out, you do not remark on their splendid effort. Although if their rubbish bin is overflowing you may be inclined to pass judgement.
Dissatisfaction in IT Supply/Support is very often associated with an inability for clients to communicate their issues which results in misinterpreted outcomes. So the key to avoiding this dissatisfaction is to create an environment where the customer and supplier has maximum visibility of the customer’s situation to reduce communication errors. The advent of remote computing is a perfect example. In the “old days” it was almost impossible to IT support over the phone. Now that you can remote into a customer’s computer you have complete visibility of the problem and you are able to resolve the problem with minimal dissatisfaction.
The Vistrack Asset Management System gives your IT Suppliers and Support Staff complete visibility over every individual IT asset within your organisation. With Vistrack’s fault tracking, your customers can log faults and you can respond and track fault message threads for each item and notify individuals when changes occur that are relevant to them. It is the ultimate communication tool linked directly to your customer’s individual assets.
Whilst the days of customer loyalty seem to be dwindling as it gives way to factors such as cost, convenience, service and functionality, companies that have established long term relationships will stand to gain a level of customer loyalty as long as they continue to maintain an appropriate level of customer satisfaction. But even with a loyal customer, when a competitor offers your customer better value, the best you can hope for is an opportunity to propose a counter offer. Depending on the value-adding tools in left in your IT Support arsenal you may need to resort to trimming your profit margin.
The Vistrack IT Asset Management system acts as a value-added IT Support tool that allow you to offer your customers an enterprise level of support that your competitors do not provide.
Customers are inclined to stay with a company if they have invested so much in the relationship that it would be too difficult/costly to warrant changing. This can occur if a company has spent time and/or money in setting up systems where turning them off would have a significant impact on operations or would be too time consuming to start the process again from scratch.
Establishing a holistic system such as Vistrack inside your customer’s organisation creates a dependency on your organisation to manage IT Assets and support. A significant level of resources (human and financial) would be required for a company to transfer this system over to another provider.
It goes without saying that one of the biggest reasons people do not change is because it is too much effort. Life just seems to get in the way and if it ain’t broke, don’t fix it. As long as you have the previous 4 points down pat you stand a good chance that your customer's laziness will prevail. And if it does, then consider it to be compliment. You are obviously doing a good job!
Vistrack offers a reseller program to select IT Suppliers and IT Support businesses. The program allow you to purchase and establish licenses to on sell the Vistrack IT Asset Management service to your clients. We host the Vistrack service on our servers and provide you with systems support. You have the ability to maintain complete administrative control over your client’s Vistrack system or you can pass the administrative control over to the client.
If you would like to find our more information about the reseller program, please contact us and we will get in touch with you shortly.