The panel of investors recognised the difficulty of raising prices but noted that the conversations were much easier if you could demonstrate ROI and that there is a general acceptance amongst the customer base of rising costs.
Lewis commented that customer attrition is not always a bad thing. “Companies need to have a good understanding of what client profitability looks like. In some cases identifying which clients really add value and letting others fall away can make sense if it leaves the business in an overall better position.”
Technology can support here, with Lewis highlighting how at ECI we regularly support management teams with churn propensity modelling allowing them to focus their efforts on the most critical customers.
Please read the full article here, to discover more of the panel’s commentary on how to improve your customer engagement during this process and how private equity firms can help companies to prioritise where they are investing time and resources.