In B2B SaaS, growth isn't solely about acquiring new customers. It's also about maximizing the value of existing ones. This means focusing on retention, upselling, and cross-selling to drive customer lifetime value (CLV). By getting predictions based on realtime facts, you can act with confidence to maximize your revenue.

The right data allows you to anticipate customer needs, take timely actions, and foster long-term relationships. The right contract options mean that renewal is easier than ever. This combination ensures predictable, sustainable growth over time. 

Here's a quick overview from 180ops co-founder and CPO, Toni Keskinen, getting straight to the point about why retention should be as big of a focus area as new business: 

Predict: Identify Renewal and Expansion Opportunities

Successful retention and expansion begin with insight. Predictive analytics enable revenue teams to:

• Forecast churn: By analyzing product usage patterns, engagement metrics, and contract behaviors, teams can identify accounts at risk of leaving. McKinsey indicates that B2B companies investing in predictive analytics, including churn prediction, can gain real-time visibility into performance and manage customer relationships more effectively.
  
  
• Spot expansion opportunities: Monitoring indicators like increased usage or adoption of new features can highlight accounts ripe for upselling or cross-selling. Info-Tech Research Group notes that predictive analytics models forecast future performance and ROI, enabling businesses to identify opportunities for expansion.
  
  
• Segment accounts effectively: Classifying customers based on value, risk, and potential allows for tailored engagement strategies. Bain & Company emphasizes the importance of segmenting customers by value and automating forecasts to predict loyalty and understand churn causes.
  
  
  

Act: Streamline Execution with Automation

Insights are valuable, but timely action is crucial. Automation tools like Oneflow facilitate:

• Recurring contracts and renewal templates: Standardizing and automating contract processes reduce manual errors and speed up renewals.
• Lifecycle event notifications: Automated reminders ensure no renewal or expansion opportunity is missed.
• Seamless contract workflows: From proposal to signature, automation enhances efficiency and customer experience.

Top-performing companies have a higher rate of evergreen or auto-renewal contracts, which are associated with better customer retention, according to McKinsey. By integrating predictive insights with automation, teams can act swiftly and effectively, turning opportunities into revenue.

Grow: Enhance Customer Lifetime Value

Gartner emphasizes that customer lifetime value (CLV) is no longer considered a new metric and highlights its significance in assessing the efficiency and sustainability of growth strategies. To learn more about how to use CLV to drive sustainable growth, read our article on this topic. 

Consistent retention and timely expansions lead to increased CLV. The impact is profound:

• Reduced churn: Proactive engagement keeps customers satisfied and loyal. But without data analytics that combine external market data with internal company data, how do you know a customer is ready to churn? That’s where 180ops comes in. 
• Increased upsells and cross-sells: Identifying and acting on expansion opportunities boosts revenue per customer.
• Sustainable growth: A focus on existing customers often yields higher returns than constant acquisition efforts.

With 180ops, it’s simple for you to see opportunities for cross-selling, upselling, and new business success all in one simple view. You can then look more deeply into each point on the graph to see account-level insights: 

Best Practices for Revenue Teams

To effectively implement the Predict, Act, Grow framework:

1. Align teams: Ensure sales, customer success, and RevOps collaborate with shared goals and metrics, instead of operating from silos. 
2. Leverage data: Use analytics to inform decisions and identify opportunities. Keep in mind, however, that getting an outcome alone isn’t enough–you need to understand how that outcome was reached. 
3. Automate processes: Implement tools that streamline workflows and reduce manual tasks. Read more about optimizing revenue cycle automation here. 
4. Monitor metrics: Regularly track NRR, churn rates, and CLV to gauge success and adjust strategies in realtime, not using past information that is no longer accurate. 
5. Iterate continuously: Use feedback and data to refine approaches and improve outcomes.

Conclusion

Focusing on existing customers is a necessity. By predicting needs, acting swiftly, and growing relationships, revenue teams can drive sustainable growth and maximize CLV. Integrating predictive analytics from 180ops with automation tools like Oneflow empowers teams to execute this strategy effectively, ensuring long-term success.