Account Based Intelligence Helps SaaS Companies Maintain Customer Databases For Renewal Success
April 11, 2016 5:42:32 AM | By Matt Benati
Whether your SaaS sales and marketing teams are making their first foray into ABM (Account-Based Marketing), or you’re a seasoned pro, one thing that is often overlooked is a priority on maintaining current accounts, which is critical when it comes to renewal success for SaaS companies.
As a business that lives and dies by how well you execute renewals, letting customer data decay can result in delayed, or even cancelled, subscriptions.
Why Should You Care About Maintaining Current Leads?
Sales tools and articles often focus on new lead acquisition. And rightfully so. There’s no doubt that your sales funnel plays a vital role in the growth of your business. But, think about this: it’s easier to expand your business relationship with an existing customer than it is to start completely fresh with a new one.
You likely know that purchased lists immediately start to decay the moment you download them. But did you know that your existing customer database can decay as well? Imagine this scenario: what happens if Mary, who was always the day-to-day user for your software, suddenly gets promoted and is now your buyer? You, not aware of her promotion, continue sending her the same messaging all of the other users receive: perhaps tips for getting the most out of your software and options to sign up for free webinars to grow their skills.
But if Mary is now in a position to influence or make buying decisions, it would be much more beneficial to send her information on new products and how your software can help boost productivity and ultimately, sales.
More significantly, what if your current contact is no longer with the company (we’ll call him John), and this person, Mary, is actually replacing him — essentially becoming your new contact for renewal? Unaware of these significant changes on your account, you’re not succeeding at getting the right message to the right person, and this could ultimately affect your chance for renewal in a few months.
The Rotten Apples In Your Decaying Database
For perspective, a ZoomInfo infographic shows that 62% of organizations rely on marketing and prospect data that is up to 40% inaccurate. That means more than half of all marketing teams would be making the mistake of sending Mary the wrong message.
The result? As many as 50% of organizations report that those untargeted emails result in a less than 3% response rate. Why would Mary open, much less respond to, a message that is no longer applicable to her? Your marketing effort is going straight to her spam folder, and she is now a “rotten apple” in your decaying database.
How Regular Communication Ensures A Well-Maintained Database
At least once a month, email existing customers, tailoring your messages based on their renewal schedule. For example, a customer scheduled for renewal within the next three months would benefit from a dialogue ensuring that your technology is meeting their current needs. A customer who has been using your software for just a short time, however, would likely benefit from receiving messages with tips, training opportunities and information about contacting customer support for help.
While these types of messages are mutually beneficial to both your business and your customer, they actually play a much more important role in terms of database maintenance.
Here’s how: your CRM or marketing automation (MA) system automatically prunes hard bounces (those that come back from the destination server as simply undeliverable). All other email replies need to be analyzed for additional information.
In the example above, if you received a “left the company” reply about John, your current contact, it doesn’t mean John’s record needs to be pruned. It means your database needs to be updated by making a note that he has left, creating a new record for the person replacing him (Mary), and pointing the original record to the new one.
Bottom line: if you’re not tracking current leads and staying in front of your target audience with the right message, you’re leaving money on the table. Uncovering these valuable nuggets of information is critical to future communication and renewal success.
Marketing To A List With LeadGnome On Your Side
It’s easy to see how important reply emails to your campaigns are to maintaining your database; manually opening and analyzing those emails is time-consuming, error-prone and costly.
LeadGnome, an account-based intelligence web service company, mines these replies for you, collecting valuable data and automatically updating your CRM system. Your current leads are maintained and enhanced with missing data as LeadGnome analyzes replies to find dates when your lead will be in (and out) of the office, updated emails and phone numbers, titles, alternative contacts, and more.
This continual maintenance is critical for putting the right information in front of the right person, and LeadGnome can help you do it! To learn more about this powerful account based intelligence solution, contact us. Or you can try LeadGnome for FREE.