Why do so many businesses focus purely on revenue instead of client satisfaction?
Short-term gains and investor pressures often drive this mindset, but it’s unsustainable. We often hear from clients that they were enticed by the promise of cheap software pricing only to have their subscription price drastically increase further down the line.
What’s more, when companies have a dominant position in the market, they use that leverage to further hike pricing knowing their clients have few alternatives.
Well, we’re determined for that to change. Prioritising clients leads to better outcomes for everyone involved.
The Pitfalls of Revenue-First Thinking
Many companies get caught up in prioritising revenue. Why? Venture capital pressures and the lure of quick exits drive them. But this often backfires:
- Client Dissatisfaction: Clients aren’t stupid! They know and feel when they’re just a number. This erodes trust and loyalty.
- Reputation Damage: Word spreads. Negative client experiences harm your reputation and brand, making it harder to attract and retain clients.
- Short-Term Gains, Long-Term Losses: Sure, revenue spikes look great initially. But when clients find better options, they leave.
Benefits of a Client-First Approach
Switching to a client-first strategy can change everything. Here’s how focusing your energy on client satisfaction over immediate revenue can pay off:
- Increased Client Loyalty: Valued clients stick around, providing a stable revenue stream.
- Positive Word-of-Mouth: Happy clients recommend your services, leading to organic growth.
- Sustainable Growth: Trust-based relationships mean a steady client base, reducing the constant need for new clients.
Ultimately, a client-first approach provides a collaborative relationship between client and software provider, where trust is built, and they work together to further increase their respective offerings. If you, the software provider, help your clients through good service and implementing new feature requests, then this in turn helps them provide a better service to their clients – enabling all parties in the chain to benefit.
To put this into perspective, in 2023 Valos implemented and added over 50 new features and datasets to the platform, almost all of which were client requested.
Our clients become an integral part of our success, just like we become one in theirs.
Practical Steps to Prioritise Clients
So, how do you put clients first? It’s about being transparent, value-driven, and engaged:
- Transparent Communication: Keep clients in the loop about changes, especially price adjustments. Explain the reasons and benefits. Increasing pricing isn’t wrong, but you must be able to prove value.
- Value-Driven Development: Focus on features and improvements that benefit your clients directly.
- Client Engagement: Regularly seek client feedback and involve them in the development process. They’ll feel valued and you’ll tailor your services better.
At Valos, we believe that focusing on clients over revenue is more than a strategy—it’s the right thing to do. The long-term benefits of client loyalty, a positive reputation, and sustainable growth far outweigh any short-term gains from a revenue-first approach. Building lasting relationships with clients ensures mutual success and satisfaction.