• Une évaluation gratuite
  • Navigator
  • Academy
  • Partner Portal
  • Devenez partenaire du QBS Group
  • France
    • Global
    • Belgique - Français
    • België - Nederlands
    • Danmark
    • Deutschland
    • España
    • 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
  • Informations
    • Blogs
    • Actus
    • Close
  • Événements
  • Solutions logicielles
  • Services
    • QBS Academy
    • Services Azure by QBS
    • Close
  • Programmes
    • Ready to Start – Programme Microsoft Dynamics 365 Business Central
    • Fournisseur indirect Microsoft CSP
    • Programme ISV
    • Nos partenaires
    • Close
  • Qui sommes-nous
    • Qui sommes-nous
    • Vision, Mission and Strategy
    • Timeline
    • Contact
    • Close
Blog écrit par:

Guus Krabbenborg

Temps pour lire:4 minutes
Partagez ceci:
  • Partager sur Facebook
  • Partager sur Twitter
  • Partager sur Google+
  • Partager sur Linkedin
  • Partager par Mail
16 octobre 2013

Retaining customers in the cloud

Vous êtes ici : Accueil » 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?

Plus d’articles

Ce qui pourrait également vous intéresser

Ce que l’on dit à propos du Groupe QBS

  • 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.

    Read the reference case
  • Joaquim Antón Gimeno

    GRUPO CHOICE

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

    Read the reference case
  • Sofkia

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

    Read the reference case
  • VS Sistemas

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

    Read the reference case
  • Berith Skov - C2IT Business Solutions

    “We are very satisfied with the services provided by and through QBS group."

    Read the reference case
  • Herke ICT Group- Karing Buzing

    We are once again part of a NAV community.

    Read the reference case
  • Owe Loonstra - Verito

    Manager Sales & Marketing

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

    Read the reference case
  • Adfocom - Jeroen Kersten

    Partner Care saved us a lot of time.

    Read the reference case
  • NavAzure - Michael Francois Knudsen

    “It is important to me, that I through QBS become part of a greater network, where partners can share experience"

    Read the reference case
  • Blisss - Dirko Wijers

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

    Read the reference case

Programme

  • Devenir partenaire
  • Fournisseur indirect du programme Microsoft CSP
  • Programme ISV
  • Nos partenaires

Centre d’Information

  • Références
  • Blog
  • Formation
  • Événements
  • Actus
  • Newsletter

Prestations de service

  • Dynamics 365 Business Central sur Microsoft Azure
  • Services de mise à niveau
  • QBS Academy

Follow 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

Contactez-nous, merci de remplir ce formulaire

Rejoignez le QBS Group veuillez remplir le formulaire

Rejoignez le QBS Group veuillez remplir le formulaire

Veuillez remplir le formulaire

Veuillez remplir le formulaire

Veuillez remplir le formulaire


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

Sign up QBS Group Membership

Send me an email.
Download Center

Register for this event
QBS
  • France
    • Global
    • Belgique - Français
    • België - Nederlands
    • Danmark
    • Deutschland
    • España
    • Italia
    • Nederland
    • Norge
    • Österreich
    • Polska
    • Schweiz
    • Sverige
    • United Kingdom
  • Informations
    • Blogs
    • Actus
    • Back
  • Événements
  • Solutions logicielles
  • Services
    • QBS Academy
    • Services Azure by QBS
    • Back
  • Programmes
    • Ready to Start – Programme Microsoft Dynamics 365 Business Central
    • Fournisseur indirect Microsoft CSP
    • Programme ISV
    • Nos partenaires
    • Back
  • Qui sommes-nous
    • Qui sommes-nous
    • Vision, Mission and Strategy
    • Timeline
    • Contact
    • Back

Nous utilisons des cookies pour vous offrir la meilleure expérience possible. En cliquant sur le bouton "Accepter", vous acceptez les cookies et consentez à la politique de confidentialité.

Faire défiler vers le haut