Pravda Media Group papers

11 | The Total Economic Impact™ Of SalesLoft Profit Growth From Increased Post-Sale Engagement And Customer Lifetime Value Several interviewed customers expanded their SalesLoft implementations to include the post-sales activity of customer success and renewal teams. The most successful of the interviewed companies implemented customer success cadences covering onboarding through implementation. They also built engaging and informative cadences to manage the renewal process. For instance, the marketing operations and analytics manager at a security company indicated positive results in the following statements: › "Our customer success team has set up a really unique, highly personalized onboarding cadence to make sure that [customers] get through all the onboarding processes correctly. I think it's led to a better onboarding experience for our customers." › "I can say that we have seen an uptick in our renewal rate. [Before SalesLoft,] our renewal rate was 75% or so. Today, we're at a healthier 85%." For the composite organization, Forrester assumed a 13% increase in customer renewal rate. In modeling this business impact, Forrester assumed: › The organization has 5,00 total accounts at Year 1 of the analysis. In subsequent years, the total account universe grows as the company brings on new logos. › On average, 33% of accounts are up for renewal each year. The 13% increase in customer renewals can be seen in row C6. Since clients renew with a three-year contract, the figures shown in row C6 are cumulative. › The composite has an average transaction size of $20,000 and maintains a gross profit margin of 15%. Customer renewal rates can be impacted by myriad factors outside of the purview of SalesLoft. To account for these factors, we risk-adjusted this benefit category downward by 35%. The uplift in profit from an increase in customer lifetime value totaled a PV of just over $1.6 million. 13% increase in customer renewal rate Profit Growth From Increased Post-Sale Engagement And Customer Lifetime Value: Calculation Table REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3 C1 Total number of customers at start of year (rounded) Y1: 5,000 Y2: Y1 + (A2 PY *A4*A5*A6) Y3: Y2 + (A2 PY *A4*A5*A6) 5,000 5,373 5,787 C2 Percentage of customers up for renewal, per year 33% 33% 33% C3 Accounts up for renewal annually (rounded) C1*C2 1,650 1,773 1,910 C4 Renewal rate before SalesLoft 75% 75% 75% C5 Renewal rate after SalesLoft 85% 85% 85% C6 Increase in retained customers (rounded) (C3*(C5-C4))+C6 PY 165 342 533 C7 Average deal size $20,000 $20,000 $20,000 C8 Profit margin 15% 15% 15% Ct Profit growth from increased post-sale engagement and customer lifetime value C6*C7*C8 $495,000 $1,026,000 $1,599,000 Risk adjustment ↓35% Ctr Profit growth from increased post-sale engagement and customer lifetime value (risk-adjusted) $321,750 $666,900 $1,039,350

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