How to Effectively Measure Customer Upsells, Renewals and Retention Rates

How to Effectively Measure Customer Upsells, Renewals and Retention Rates

Say your revenue team has just closed a deal. It’s an amazing feeling, right? Your sales team is ringing the gong and your marketing team is popping the champagne. Everyone’s excited to welcome another customer into the family.

But when the champagne bottle is empty, and it’s time to get back to business, many marketers will often only think about their marketing attribution in terms of what is bringing in net new business. After the deal closes, marketing typically has a set onboarding and customer cadence that treats their customers equally and provides them with the same set of content from marketing automation.

The reality is that marketing attribution shouldn’t stop at a closed deal won. How often though do your find yourselves running into customers at a trade show?  How many times have you noticed customers browsing your website and downloading content to become more educated? And how often are customers taking a reference call for you or writing a review on G2Crowd?!

It’d be such a shame to miss out on all those marketing interactions and touchpoints that take place after the deal has been won. Wouldn’t it be great to understand whether there was a pattern to marketing touches or customer advocacy that led to more upsells, renewals, retention and a better overall customer experience?

In the era of SAAS, renewal and retention rates are just as important, if not more important than net-new business to your investors! It’s time that marketers go beyond tracking what revenue they sourced, to analyzing and getting credit for customer retention revenue numbers.

Marketers should start becoming best friends with their client success team. With the help of multi-touch attribution insights, marketers can do a lot more than just help grow net-new revenue — they’ll finally be able to provide tremendous insights into what type of content resonates the best at each stage of a customer upsell or renewal cycle.

These types of metrics can also give your revenue team a deep understanding of how offline activities and customer advocacy campaigns impact retention and renewals. With a couple clicks of a button, a multi-touch attribution tool like BrightFunnel can easily help marketers understand which marketing tactics are most impactful at each stage within the renewal and upsell cycle.  This reporting would allow you to proactively design and target programs to actively engage your customers vs. just pumping them with the same content.

While marketing automation might work to send customers down different paths based on their engagement, what would you do if you found out that those email campaigns actually had no impact on renewals and upsells?

You might be tempted to invest in opt-in preferences for your customers through a contact preference project, but what if you realized that customers that renew or upgrade do not even care about reading your marketing emails.

Wouldn’t it be better to know that getting customers to a particular dinner or user conference would increase the likelihood of them renewing by 50%?! Imagine communicating that to your CS Team! You better believe they would be ensuring that they were participating in your events and working hard to ensure attendance.

Or what if you found out that a particular ebook that had not sourced many deals had actually touched 70% of closed/won renewals last quarter, would you still have cut it?

These are all the type of immediate insights you can get from BrightFunnel!

We would love to help your marketing team increase renewal rates using BrightFunnel! Schedule time to speak with our Revenue Intelligence team to get started. 

What Did You Get For That Event You Spent $50k On?

What Did You Get For That Event You Spent $50k On?

Event season is in full swing and our own marketing team has been completely heads down working on the logistics around all the events we are sponsoring in Q2. In the next two weeks alone we have two events–Martech, which we just completed this week, and SiriusDecisions Summit next week in Vegas. A lot of time and energy are spent on events!

The Problem with Event ROI

With all this event spend, how do we define success? Are we getting our money’s worth? Are we just wasting our time? These are questions that our marketing team thinks through internally after every event.

According to Harvard Business Review, B2B marketers spend roughly $565 Billion on hosting, attending, and exhibiting at events which is about 21% of corporate marketing budgets! That is a lot of money!

In my experience speaking to customers and other marketers about ROI, event ROI is something that CEOs and CMOs are incredibly focused on. Unfortunately, asking “what is the ROI of our event?” is a very convoluted question and there are not typically many solid metrics to back up claims of high ROI.

You have all heard the typical response “well….we only sourced 10 new opps, but I swear we were super busy and talked to a lot of companies…we even talked to a lot our current customers!”

Yikes…so why is it typically so hard?

When it comes to events, there are so many benefits to investing in key conferences and field activities that go far beyond simple lead acquisition. At the events that we hold at BrightFunnel, our marketing team has goals around prospect and deal acceleration, customer advocacy, analyst engagements, and more. If you are only looking at success as the first-touch then you are missing out on a lot of critical touch-points.

Justifying Your Event Budget

These days, data is king. Having the ability to clearly and quickly articulate quantifiable metrics on how events drive pipeline and revenue is critical. As a result of ROI being top-of-mind for CEOs, it is no surprise that the CMO shelf life is only 20 months. By the time a CMO or marketing leader has their marketing stack bought and event schedule set, the board and CEO want to know the impact on pipeline and revenue.

They want to see the data, examples, and believe in the ROI. 

Multi-Touch Attribution is the Key to Determining Event Success

Multi-touch attribution is the only way to get these holistic insights.  Refocusing the business around “touched” metrics, in addition to “sourced” is game changing. Think back to the original example I gave above. Maybe the event only sourced 10 opportunities, but it influenced many other critical things—like opportunity acceleration, closed deals, and customer retention or upsell.

Multi-touch attribution not only allows marketers and CMOs to justify their budgets, programs, and show definitive ROI related to events, but it also allows the team to get credit for all their work.

By looking at how events impact numerous places in your sales cycle, defining the true ROI of an event across multiple initiatives becomes much more accurate.

How much of your team’s time is spent just trying to answer these questions?  What would you like your team to spend time on?

By partnering with a multi-touch attribution partner, like Brightfunnel, your team can easily show your C-suite the true value of their investment in something like an expensive tradeshow.