SOLIA Consulting

Can you your enterprise sustainably if a big proportion of your existing decide to part ways and do business with your ?

Annual churn rates of 15% and more is something we see regularly at SME’s. And our clients typically react to this by putting more focus on business development… But they forget that existing customers are a great source of , as increasing retention rates by 5% can affect positively by +25% up to 95%. Furthermore, research shows that serving existing customers is 5x less expensive than acquiring and onboarding a new customer.

To contrast customer , you should therefore first understand the causes of it, monitor its level, and finally take action to generate loyal and profitable clients that are (a) happy to stay and (2) likely to do more business with you in future.

At Solia, we have developed a program to predict and reduce customer churn, among our Optimization solutions, in the module Growth and Lifecycle Management. We (1) understand your customer base purchasing habits, (2) spot indicators that suggest when customers are likely to churn, (3) develop recommendations and roadmaps to contrast customer attrition, and (4) train and coach your salesforce to increase customer loyalty.

In this article, we give you some tips about the most common causes of customer churn, and guess what, price is not among them!
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Are you willing to leave money on the table? The impact of on the bottom-line by far exceeds the effects of cost-optimization or volume gains.
Most companies still rely on -plus pricing which derives selling prices by determining the cost of the product or service and adding a markup on top. Despite being a simple and intuitive pricing approach, cost-plus can affect your negatively, as deriving from your customers’ real willingness to pay might not be fully exploited.
Thus, using a -based pricing strategy is what you should aim for in case you want to boost your top and bottom-line and sustainably improve your business.
In this article, we explain in detail the 4 steps to enhance a value-based pricing strategy and illustrate some of the positive impacts value-pricing can have on organizations.
Are you still willing to leave money on the table?
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https://solia-group.com/why-might-your-current-pricing-approach-harm-your-profits/

Why might your current pricing approach harm your profits? – SOLIA Group The impact of pricing on the bottom-line by far exceeds the effects of cost-optimization or volume gains. But although pricing is the key profit driver, many companies do not get it right.