LAER Explained: Strengthening the Customer-Supplier Relationship Model
The LAER model is an approach to business growth by enabling customer success and getting the results they want. In addition to optimizing company goals, companies should also choose customer success and understand the lifecycle in the customer journey.
But what exactly is LAER? Are you confident that your company can achieve all four goals in the model and become “LAER Efficient”? Let’s review this article and review some of the basics.
What is the LAER model?
There are four objectives in the LAER model. It will continue to evolve as more and more companies make the LAER model part of their day-to-day operations.
land
Landing or finding the right engagement for a customer is the first step towards customer success. Every company should look for different ways to attract and convince potential customers to buy its product or service.
adoption
When your customers have the opportunity to work with your company, the next step is to get them to take full advantage of your goods and services. Customers must effectively adopt or be able to meet their needs through these products and services.
Keep this in mind: Customers who are highly adopted and satisfied with their purchases are more likely to renew their contracts.
expansion
After you’ve identified your target customers and gave them a chance to try your products and services, you should move on to the third goal: expansion.
Expansion is when you unlock the potential of your business by introducing additional products to your existing customer base. You need to encourage them to purchase products that your company offers or advanced features of other types of goods and services.
Sales and marketing should work together to leverage customer account expansion.
renew
Renewal is when your customers determine whether products and services make financial sense to continue the relationship. When the customer confirms that they can find value in the transaction and are willing to return, you will enter the “renewal phase”.
Much of the company’s goals include making customer engagement a regular practice. To do this, you must follow the other three steps above thoroughly.
See More: QBR in Business
Who is responsible for the different roles in the LAER model?
Different roles in the LAER model
Although the company’s goal is to develop new business prospects and drive the company forward, each department should be responsible for a different phase.
At least three departments are responsible for the LAER model: Customer Success, Sales, and Marketing.
land
The sales team is primarily responsible for finding potential customers. They are the best teams to organize step-by-step plans or use solid arguments to better understand and target the right segments.
Therefore, to land in the right customer area, there is no other suitable department other than the sales team.
The sales team gathers together to target customers
adoption
Customer Support and Customer Success teams are the next two departments to help customers understand their needs. This knowledge is nothing new, as we often turn to our customer support team for assistance.
But as for the customer success team, they’ll be reaching out to customers and asking questions to learn more about what they do, their problems, and who they can help them achieve their goals.
expansion
Promoting products to existing customers relies on sales and marketing departments. The marketing team will increase awareness of new product or service update features and drive engagement with all potential customers.
The sales team will then get in touch with existing customers and deliver marketing messages.
renew
The three phases mentioned above significantly affect this phase; therefore, all designated departments are responsible for the update phase so far. TSIA (Technology and Services Industry Association) claims this phase should be overseen by a Customer Success Manager or Renewal Assistant.
Further information: Client EngaGement Model – The Basics
How to implement the LAER model?
We will continue to show you the tasks of each department in using the LAER model.
land
If the sales team wants to land in the territory of the target customer, here are its steps:
- Identify needs, problems, and barriers to finding customers.
- Define the value you intend to provide to consumers.
- Contact customers through three methods: Advanced, Questions, and Product Methods.
- Start the sales process for customer success.
adoption
It’s time for Customer Success and Customer Support to handle this phase!
- Conduct surveys and track product utilization.
- Determine which features are being used and which are not.
- Connect with customers and increase customer engagement.
- Encourage them to use more features of the product.
- Identify and resolve any consumer difficulties.
- Continue to educate customers about new product features and how to use them more effectively.
- Follow the steps above until the user’s active time on the product increases.
Most tasks are done over the internet
expansion
We believe that the expansion phase is the most challenging phase. Although customers have an idea of how to use the product, it is not easy to convince them to try other newer features or goods and services.
However, there are some basic steps to expand customer interactions with other products and services.
- Show customers how the product can help them achieve their business goals.
- Determine what other solutions you can offer and which are most in demand by consumers.
- Coordinate sales and marketing teams to provide collateral for upsell and cross-sell sales pitches.
- Update new products.
- Encourage customers to share their purchases on their social sites.
- Learn how your customers want to hear from you so you don’t waste time and money on unsuccessful communication styles.
- Keep in touch with existing customers.
renew
Hold on tight to your customers and assure them that they will continue to pursue a mutual relationship.
- Identify early signs of customer churn.
- Fix the problem as soon as possible.
- Focus on customers whose update date is approaching.
- Reward them for coming back.
- Make the company easily accessible.
- Never forget customers.
in conclusion
When building a successful relationship between customers and suppliers, following the LAER model will help both parties achieve common goals and optimize the best customer engagement experience.
We believe that every company, from startups to giants, should focus and understand the customer lifecycle in order to increase revenue and expand brand awareness.
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