Business Expansion Snags: Unseen Impediments Thwarting Your Company's Growth Progression
"Hey there! Let's tackle expansion issues head-on!"
For many businesses, expanding existing accounts seems like a no-brainer. You've scored the initial deal, provided value, and gained happy customers. So, why does expansion sometimes grind to a halt?
Expansion opportunities frequently hit a snag. Promising conversations fizzle out. Deals that should close in a flash become quarter-long marathons. In the worst-case scenario, customers churn instead of expanding. Don't worry, you're not alone in this predicament. Many companies experience an invisible barrier when attempting to grow existing accounts, and the culprit is often misunderstanding the customer's reality.
The Expansion Illusion: Common Missteps to Steer Clear Of
1. Selling expansion to the wrong person
Your initial champion probably doesn't have the power or resources to expand your reach across the organization. Many vendors assume their initial buyer can organically spread adoption throughout the company. In reality, that champion often lacks the political capital, budget authority, or time to advocate for expansion. Start treating expansion like a brand-new sale; research and establish relationships with new decision-makers early on.
2. Customers are clueless about what you offer
Assuming customers are well-versed in your product line is a dangerous assumption. It's common for customers to know only a fraction of a product's capabilities. Regular "customer health checks" can help you understand what they actually know and educate them on undiscovered solutions.
3. Misaligned metrics hamper expansion
Expansion pitches often falter because they focus on product features instead of the financial impact. Even though end-users might love your solution, procurement and finance teams usually care about tangible ROI. To get your expansion proposal past their filters, focus on the business outcomes and financial benefits of your offering.
4. Invisible churn lurks in silence
Don't confuse silence with customer satisfaction. Disengaged or minimally active customers aren't thinking about expansion; they're more likely to drift towards non-renewal. Regularly monitor usage, engagement, and strategic alignment to spot potential risks before they become churn.
5. A sales mindset, not a research one, hinders expansion
Expansion strategies often mirror a prolonged sales cycle, but successful companies treat expansion as a research exercise. They don't just push offers; they remove the obstacles hindering growth. To enhance expansion opportunities, run qualitative customer research to understand the reasons behind growth hurdles and tailor solutions accordingly.
The Real Game Plan for Scaling Existing Accounts
Expansion is not automatic, but with the right strategy, it can become a significant driver of revenue growth. To achieve this, remember the following if you're eyeing expansion:
• Mapping out the full buying group early. Build robust relationships with decision-makers beyond your initial champion.
• Frequent customer health checks. Don't assume your customers are aware of everything you offer; proactively educate them.
• Tailor language to ROI. Align expansion proposals to your customers' desired outcomes, focusing on ROI (not just product features).
• Monitor engagement signals. Customers who don't fully engage with your solution aren't expanding.
• Research as your secret weapon. Metrics tell you what's happening; customer insights reveal why things are happening and how to rectify them.
Unlocking growth in existing SaaS accounts demands a strategic approach, fostering deeper relationships with customers, and proactively addressing obstacles to expansion. So if you're aiming for growth, pay attention to the issues hindering expansion and craft a strategy to conquer them!
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- Ron Carson, in his proactive approach to growth, emphasizes the importance of treating expansion like a new sale, even with existing customers, and researching decision-makers beyond the initial champion for a broader reach.
- In his discussions on the trading floor, Carson often highlights the necessity of educating customers on the full extent of a product's capabilities during customer health checks, ensuring they get the most value from their footprint.
- To renovate and renew the growth trajectory of companies under his leadership, Carson encourages manufacturers to align expansion proposals with the financial impact, focusing on business outcomes and tangible ROI rather than just product features.
