ALERT – Revenue Growth Opportunity in Enterprise Accounts
As the Enterprise market (firms with more than 1,000 employees) becomes increasingly saturated with MPS, the importance of retaining existing clients and identifying your competitors’ clients who are willing to switch becomes critical. In North America, Photizo Group has identified that $8B of the $11B MPS opportunity can be found penetrating existing accounts. Only $3B of the total opportunity is associated with capturing ‘new to MPS’ accounts (Photizo Group 2016 MPS Advisory Service Forecast). The maturity of the enterprise MPS market means keeping customers is critical, but there is a catch.
Research and analysis into MPS customer defection
rates by Photizo Group indicates that 34% of MPS
contract holders are considering switching MPS vendors or bringing their outsourced MPS projects in house. With one third of the customer base open to change, it’s imperative that vendors understand whether their customers are switching to other vendors or this is an opportunity to capture competitors’ MPS accounts who are switching.
Many vendors are making a serious error in assuming that their customer loyalty or satisfaction data is adequately identifying threats to their customer base. Without an understanding of how your customer satisfaction and loyalty compares to the competition, it’s easy to overestimate the strength of your customer relationships.
With this significant opportunity to gain new enterprise customers what are vendors doing to generate the data to understand which are switching vendors? Armed with this information, vendors can enhance or create customer retention strategies. They can also target their competitor’s customers who are susceptible to switching. Most importantly gain insights on why customers may not be considering their brand.
With 34% of MPS contract holders switching, it is a great time to gain new enterprise accounts that can contribute a revenue stream over the next 3-5 years and beyond.
If you would like to take advantage of the opportunity to gain new Enterprise accounts, Photizo is launching a study to provide the information needed to understand which customers are switching and why. For more information please contact Ron Iversen, VP of Market Intelligence Services (firstname.lastname@example.org).