• Bliv partner
  • Login
  • Danmark
    • Global
    • Belgique - Français
    • België - Nederlands
    • Deutschland
    • España
    • France
    • Italia
    • Nederland
    • Norge
    • Österreich
    • Polska
    • Schweiz
    • Sverige
    • United Kingdom
  • Global Global Global en
  • Belgique - Français Belgique - Français Belgique - Français fr-be
  • België - Nederlands België - Nederlands België - Nederlands be
  • Danmark Danmark Danmark da
  • Deutschland Deutschland Deutschland de
  • España España España es
  • France France France fr
  • Italia Italia Italia it
  • Nederland Nederland Nederland nl
  • Norge Norge Norge no
  • Österreich Österreich Österreich at
  • Polska Polska Polska pl
  • Schweiz Schweiz Schweiz ch
  • Sverige Sverige Sverige sv
  • United Kingdom United Kingdom United Kingdom en-uk
QBS group
Menu
  • Infocenter
    • Referencer
    • Nyheder
    • Vores Blog
    • QBS Træningskatalog
    • Træninger med QBS Academy
    • Arrangementer & Workshops
    • Close
  • Løsninger
  • Services
    • Ready to Go for Dynamics 365 Business Central
    • Ready to Start Dynamics 365 Customer Engagement
    • QBS Academy
    • QBS Azure Services
    • Upgrade Services
    • Take the Lead
    • QBS Nordics – Marketing Services
    • Close
  • Program
    • Bliv partner
    • Indirect CSP
    • ISV Program
    • Vores partnere
    • Close
  • Om os
    • Om os
    • Karriere
    • Close
  • Kontakt
Bloggen er skrevet af:

Guus Krabbenborg

Tid til at læse:4 minutes
Del dette:
  • Share on Facebook
  • Share on Twitter
  • Share on Google+
  • Share on Linkedin
  • Share by Mail
16 oktober 2013

Retaining customers in the cloud

Du er her: Start » Retaining customers in the cloud

The Microsoft Dynamics channel has been busy for some time now with the transition from the traditional on-premise model to the cloud delivery model. With this, the customer is no longer the owner of the user rights to his licenses, but simply a buyer of a service that gets settled on a subscription basis.

In this new setting, the financial risks shift from the customer to the vendor and the customer has more power. This shift from a capital investment (CapEx) to an operational expense (OpEx) has already had a significant impact on customer loyalty and retention! After all, in a cloud model, it’s a lot easier for a customer to say goodbye to his supplier.

During Microsoft’s WPC 2013, last July, it was remarkable that – of the many hundreds of sessions – only two had customer retention in their titles! Both focused on Microsoft Dynamics, by the way. Winning new customers is apparently far more popular than retaining existing customers. However, if you analyze the business models, you discover that customer retention, or churn management, is one of the most important indicators of profitability.

Let’s start with the definition. Churn can be described as the situation in which an existing customer stopsbuying products and services from a given company.

In the traditional world of on-premise and CapEx, all the risk was for the customer. After all, he had already laidout the majority of the investment beforehand without the certainty that the solution fit. Or even before it could be put into operational use! As the illustration below shows, the on-premise partner receives at least 70% of the turnoverfrom a four-year period in the first year.

Illustration 1 – Investments in the traditional CapEx model

This is quite a different image from the world of subscription models based on OpEx! With a comparable totalinvestment of $2 million over 4 years’ time, the customer spends only 10% of the turnover in the first year! So the pot of gold is no longer available immediately at the start of the project, but should be filled only at the end of the contract term (at least if everything goes well).

With this, the financial risk has clearly shifted to the partner. Certainly if the agreed contract period is (much) shorter than four years. And what if the customer decides not to extend the cooperation and to terminate the contract after 12 months? Then the investments from the pre-sales phase, including the salesperson’s commission, probably haven’t even been “earned back” yet. Let alone that a red cent ever got earned on that project!

Illustration 2 – Investments in the OpEx cloud model

In the cloud model, the buyer has the opportunity to “taste” extensively before he actually becomes a user. If things taste good, he can then extend this with all sorts of smaller “micro-transactions.”

Customer loyalty, retention and churn management are terms for activities that vendors initiate to prevent churn. Customer retention is the primary driver for profitability in a cloud delivery model. As it turns out, it’s impossible to operate profitably with churn in excess of 35%. In practice, the first six months turn out to be crucially important to a successful, long-lasting relationship.

Retaining customers in the cloud demands for a complete different mindset and approach. Dynamics partners who want to be successful in the near future better start their preparation on time. How far is your company in this process?

Flere artikler

Måske er dette også noget for dig

Det siger andre om QBS group

  • Camilla Grabowski

    Nordic Marketing Manager

    ”iGlobe har på ét døgn migreret til Business Central, opnået fuld integration, og løsningen fremstår nu, som én samlet platform."

    Læs referencerne
  • Ferry Schrijnewerkers

    Owner en Co-founder at MKB365

    Since the start of our company 4 months ago, we have already completed 12 Dynamics 365 for Sales implementations.

    Læs referencerne
  • Everest

    "Vi har frigjort tid med avseende på licenshantering, support och leads”

    Læs referencerne
  • Asitis

    Jag kan definitivt säga att QBS överträffade mina förväntningar.

    Læs referencerne
  • Joaquim Antón Gimeno

    GRUPO CHOICE

    "Our relationship with QBS group allows us to improve our marketing strategy."

    Læs referencerne
  • Sofkia

    "Our alliance with QBS group has been very important in the development of our business strategy."

    Læs referencerne
  • VS Sistemas

    "QBS group helps us build our road to success."

    Læs referencerne
  • Berith Skov

    En effektiv vej til viden og til services, der løfter forretningen

    Læs referencerne
  • Herke ICT Group- Karing Buzing

    We are once again part of a NAV community.

    Læs referencerne
  • Owe Loonstra - Verito

    Manager Sales & Marketing

    The fact that we belong to a larger organisation gives our customers security.

    Læs referencerne
  • Adfocom - Jeroen Kersten

    Partner Care saved us a lot of time.

    Læs referencerne
  • Michael Francois Knudsen

    "QBS er en del af et større netværk, hvor partnere møder hinanden og kan dele erfaringer, viden og hjælpe hinanden på opgaver."

    Læs referencerne
  • Blisss - Dirko Wijers

    Without the help from QBS group we wouldn’t have succeeded.

    Læs referencerne

Program

  • Bliv partner
  • Indirect CSP
  • ISV Program
  • Vores Partnere

Infocenter

  • Referencer
  • Blogs
  • Træning
  • Arrangementer
  • Nyheder
  • Nyhedsbrev

Services

  • QBS Azure Services
  • Upgrade Services
  • Dynamics 365 Acceleration Program
  • QBS Academy

Følg QBS group

© Copyright QBS group 2023
  • Cookie Policy
  • Privacy Policy
Marketing made easy: ACCH Marketing and the Buying Journey
We are now Companial!

This is our old website, we’re now Companial.

The content on this page might be outdated.

Enjoy all the new information on our new website.

 

Go to Companial

Please complete the form

Contact us, please complete this form

Join QBS Group, please complete this form

Join QBS Group please complete the form

Sign up QBS Group Membership

Send me an email.
Microsoft’s Power platform - Webinar 11 February 2020

Please complete the form


If you are not seeing the form, please check your ad-blocker settings.

Download Center

Please complete the form

Please complete the form

Please complete the form

Register for this event
QBS
  • Danmark
    • Global
    • Belgique - Français
    • België - Nederlands
    • Deutschland
    • España
    • France
    • Italia
    • Nederland
    • Norge
    • Österreich
    • Polska
    • Schweiz
    • Sverige
    • United Kingdom
  • Infocenter
    • Referencer
    • Nyheder
    • Vores Blog
    • QBS Træningskatalog
    • Træninger med QBS Academy
    • Arrangementer & Workshops
    • Back
  • Løsninger
  • Services
    • Ready to Go for Dynamics 365 Business Central
    • Ready to Start Dynamics 365 Customer Engagement
    • QBS Academy
    • QBS Azure Services
    • Upgrade Services
    • Take the Lead
    • QBS Nordics – Marketing Services
    • Back
  • Program
    • Bliv partner
    • Indirect CSP
    • ISV Program
    • Vores partnere
    • Back
  • Om os
    • Om os
    • Karriere
    • Back
  • Kontakt

This website uses Cookies to give you the best experience. Agreed by clicking the 'Accept' button. After you've clicked on "Accept" you accept Privacy Policy

Scroll to top