18 Dec Rev X – Yes – This Really Does Happen
“Rev X” – Yes, This Really Does Happen
Picking up from last week, not only does this really happen, it will happen to every single account you have if you do one thing. And, that one thing? That’s if you do your job well!
As with many things, there is more than one way to look at this graph. When viewed from the service provider side, this is a great outcome. We’ve successfully solved / reduced the clients problems and we are returning increasing revenues and profits to our firm. This is great performance and exactly what we are trying to achieve.
It looks different, however, from the client’s vantage point. Once the lines have crossed, clients see a smoothly functioning / low problem operation that they are paying a great deal to maintain. As time passes, we’re farther and farther from the hard work and massive value we created at the opening. It’s natural for clients, who are always looking to trim costs, to begin to wonder, “What have they done for me lately?”
Worse yet, as time passes we become increasingly vulnerable to competitors. They look at our smoothly functioning operation, where the big problems have already been solved, and begin saying to our client – “We can do this for less – perhaps a lot less.” And guess what – they probably can. It’s a lot easier when there are few, if any, problems left to solve.
This fundamentally different way of looking at the same situation costs service companies billions of dollars in lost contracts every single year. It’s particularly hard to accept because the losses are often a result of great performance. What feels like a non sequitur really isn’t one.
In the weeks to come, we’ll dive into some of the solutions – and indeed opportunities – that Rev X presents to us. Before we do though, we’ll also introduce to the equation one more giant threat (that is also pretty well guaranteed to happen). Please stay tuned.
Rev X does remind us of one fundamental truth about Clients for Life®. At its core, Clients for Life is a disciplined process of communication – not an operational one. Our clients are already great operators – fully capable, experienced and credentialed in managing the services entrusted to them. But increasingly, that is not sufficient to achieve breakthrough levels of client retention and renewal. That’s where Clients for Life comes in. Clients for Life reshapes the way we communicate with our clients, in both directions, to achieve full collaboration, transparency and partnership. It creates the bridge that great operators seek between high levels of client satisfaction and great client retention.
John & Steve