This blog addresses the one secret Fortune 500 Sales Executives use to retain business indefinitely! And it’s not rocket science … let me explain by first asking a question:
Q: When does your organization get credit for the value you provide to your customer?
A: Very few organizations rarely (if ever) get credit for the value they deliver. This unfortunate fact makes many companies very susceptible to competitive threats. It also allows your customers to forget about the value your products/services provide to them daily – potentially making you vulnerable to competitive discounting (price erosion).
Until you systematically schedule quarterly meetings to tell your customers about the benefits you provide (money saved, revenue grown, service levels exceeded) on a consistent quarterly basis – your customers will quickly forget about the value your product/service provides them. This quickly leads to lost clients.
What is a QBR?
Only through a Quarterly Business Review (QBR) can organizations get credit for the value they bring to their clients. Here are some interesting statistics:
- Less than 20% of all organizations use this powerful QBR process.
- According to Harvard Business School – businesses that utilize a consistent QBR process retain over 85% of their customers year-over-year.
A QBR is simply a quarterly business meeting scheduled with each of your clients on a predetermined date – that need last only 90 minutes.
Why QBR’s are so very powerful?
Business are great about “selling-value” to their customers. Businesses are also great about “providing-value” to their customers – otherwise they’d be out of business. However, 85% of business “never get credit for the value they deliver.”
How QBR’s work?
Step 1: Once you secure new business with a client, immediately schedule 4 quarterly meetings with them (90 minutes each). They will likely ask, “What for?” You’ll reply, “To ensure we are providing you the value and service levels we have promised you.” Trust me – they will be extremely happy to schedule all 4 quarterly meetings immediately!
Step 2: In the QBR meeting presentation, consider all the “value” you promised your client in the sales process. Gather all the relevant KPI’s (key performance indicators) and graph them on a document or PowerPoint. Keep it simple! Don’t make this difficult. The goal is simply to remind your client/customer the value you are providing for them (as promised), while also nurturing the relationship.
Why QBR’s retain customers?
If you are not continually getting in front of your existing customers, I can guarantee that your competitors would love to! Getting in front of your customers frequently is a mandatory and powerful key to sales retention. The QBR not only allows you to systematically inform your customer of the value you continue to provide, but these meetings also get you in front of them regularly! The QBR allows you to position your product/service as “best in class” every 3 months with consistency. Imagine how hard your competitors are working to get just one meeting with your client (with all decision makers present). They are begging for that sacred opportunity! With the QBR, you gain this important and highly desirable meeting 4 times per year!
Many organizations are good at selling value. An even greater number of organizations are good at providing value. Yet very few organizations (less than 15 % according to Harvard Business School) ever get credit for the value they provide their clients! Appalling!
Get credit for the value your business delivers! Ensure that your organization systematically provides each client a QBR four times every year. Client retention will soar and the revenue results will amaze you!