A New Way of Thinking With Recurring Revenue

Today’s most successful brands have switched focus from managing sales transactions to managing customer experiences with the goal of maximizing the lifetime value of each relationship. In an environment where customers have increasing control over the relationships with companies they do business with, managing every moment of the customer experience is crucial to a successful recurring revenue business.

Customers want what they want, how they want it, and when they want it. The businesses that can deliver on these demands the quickest gain satisfied customers, and satisfied customers are more likely to continue to spend money with companies they like. As a result, maximizing the customer lifetime value (CLV) is a key and measuring CLV is a critical metric for understanding the success or failure of a recurring revenue program. Rather than focusing solely on new or single sales transactions, sales support focuses on maximizing CLV at every potential revenue moment as it carries the most value to your business over time.

While the traditional sales cycle focuses on the repetition of separate sales transactions for revenue, recurring revenue models emphasize building the customer relationship through engagement and the overall experience. Every interaction with your customers is an opportunity to build or lose trust and loyalty, which can ultimately lead to more revenue. Customer retention, not customer acquisition, is the lifeline of a successful recurring revenue model.

The No BS Guide to Recurring Revenue Success will help you understand the importance of maximizing customer lifetime value in a company’s growth and success over time. Download the guide today and see why one-time sales transactions are a thing of the past.

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About the Author

Eileen Bernardo
Eileen Bernardo is the Content Marketing Manager at Aria Systems where she manages content creation for multiple projects. She has an M.S. in Public Relations and Corporate Communication from New York University and a B.A. in Communication from the University of California, San Diego.

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