I need to admit something to you. I hate losing clients. Makes me feel like my work was worthless and my ideas were just not good enough. And if we are going to be honest completely – losing clients makes me feel sad. And it is not about the money. It is about what I could have done for them but I will never get a chance to do.
Customer life time
Depending on the industry, B2B customer life time value can be calculated for a period of several days up to several years. By calculating customer life time value, you can get to know 2 very important things:
- What would be your profit per customer
- When you can expect to be dumped
So by knowing this, you can expect that some clients will grab a phone sooner or later and call you saying that it is not because of you it’s because of them (brings some memories?) and they will gently tell you that there is a new software development supplier that would take their business to the next level.
I know it is because it scares me too, but there is something we could do in a meantime:
- Learn how to build long lasting relationships with our customers
- Learn how not to make wrong steps
Learning what kind of activities can bring you in a position of losing an important client you can find answers to how to build successful business relationships. Saying that, let’s stay for a few minutes on why digital marketing agencies replace software development suppliers.
#1 Not delivering on time
Delivering on time means that you know what you are doing and that your company is not just the one who talks the talk. It shows that you have control over your activities and team and the most importantly, you are a trustworthy partner that keeps their promises. Not delivering on time means…you get a picture.
#2 Over-promise, under-deliver
Have you ever been told that something is “a piece of cake” and then never saw it happen? Overpromising is one of the most common reasons why business relationships do not last long. Overpromising is also the first step of not delivering on time so always have in mind that cherry is on the top and that building a trust is a puzzle that demands time and effort so try to give small promises that can be 100% deliver so you can make bigger ones at the end.
#3 Team scalability
Most business relationships develop over time and projects became more challenging and demanding. While calculating customer life time value one of the criteria that can put you on a safe side in the future is to also calculate customer project scalability so you don’t end up with a big project with an important client that you can’t deliver because of internal resources. This is always trigger point for digital marketing agency to find another technology partner that can easily scale the team.
#4 Technology lock down
Digital marketing agencies always seek for innovative solutions for their clients so they can remain being No1 partner for them. In order to be such a digital marketing agency, you need the same from software development suppliers. Your task as a technology supplier is to follow new technologies so you can support digital marketing agency bring cutting edge solutions to their clients.
#5 Bad communication
As stated in one of previous posts, there is no such a thing as over communicating with your digital marketing agency. Technology partner should be involved in all steps of the digital project and should have clear and open communication about each and every step. Only with this kind of relationship you and digital marketing agency could work as one team in front of the mutual customer.
#6 Misunderstanding of business model
There is nothing worse than technology partner that is just not understanding digital marketing business. Let’s take for an example that you are selling services on a monthly fee subscription and you need to deliver mobile application within existing business model and your technology partner is selling only on per project business model. How would you deliver your clients what is needed? Beside that, your technology partners should follow your activities with clients they should also follow your business model and align with your strategy so you as digital marketing agency can grow.
How to choose the right technology supplier?
Choosing the right technology partner to follow your digital marketing agency is not an easy task to do. At the first glance, everyone can deliver you a mobile app or WordPress web site but you know that when challenge arises, there are not to many technology partners that would run an extra mile with you.
We prepared short ebook about what potentially can be good for you if you are evaluating technology partner for your digital business.
Heck, we are getting evaluated on a monthly basis so maybe we can help you choose a good partner for your digital business.
Go grab it by clicking on the picture below: