Gartner Research

Tech Go-to-Market Best Practice: Providers Need to Clearly Demonstrate Value to Expand Existing Account Revenue

Published: 14 April 2015

ID: G00271254

Analyst(s): Todd Berkowitz

Summary

Expansion, upselling and cross-selling are inexpensive sources of revenue creation, but these strategies fail when providers don't focus on delivering value from existing investments. Business leaders must ensure customer-facing teams show return on investment, early and often in the relationship.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Nearly Two-Thirds of Existing Customers Will Buy More If They Get Value From Their Initial Investment, but Providers Don't Consistently Show It
    • Recommendation: Establish Formal Processes and Programs to Help Demonstrate Value
  • Customers View Interactions With Existing Providers as Important, but Providers Aren't Delivering
    • Recommendation: Use Training, Content and Tools to Enable All Customer-Facing Employees to Improve the Value of Their Interactions
  • Unrealistic Expectations During the Sales Process Drive a Mismatch Between Value Expected and Value Delivered
    • Recommendation: Including Training as Part of Onboarding and Sales Enablement to Ensure Hunters Don't Overpromise During the Sales Process
  • Customer Success Metrics Often Change, but Providers Don't Always Keep Track of Them
    • Recommendation: Work With Customers on a Regular Basis to Validate KPIs and Adjust as Needed
  • Summary

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