As spend in Cloud continues to grow, Cloud businesses have an increased opportunity to generate higher revenue this year over last.
The temptation for many will be to add new services to capture demand and move into new markets to drive further growth, however, the businesses that will see the most success will be those that can maximize their existing services before moving into new areas
We look at the 4 steps that will allow businesses to maximize current service delivery to improve margins and drive incremental growth.
- Reduce technology costs.
- Create an efficient and well utilized team.
- Create a customer acquisition engine.
- Embed a culture of continuous improvement.
Reduce technology costs.
2020 saw the increased reliance on technology. Every company was forced to embrace the digital revolution to improve operations, engage with customers and automate processes but as we move through 2021, companies need to ensure their technology is providing the right value.
Remote working, global operations and a focus on output over ideation furthers the creation of siloed teams and departments. Departments become focused on purchasing tools and technology to benefit only their department and not fostering collaboration across the business.
For example, the marketing department may use a survey tool to gain customer insights, but the customer team use another to gain service feedback. One tool should be used across both.
Cloud businesses need to conduct regular audits of this spend to gain a consolidated view across departments. Aligning this audit to budget planning ahead of the new financial year will ensure consistency in spend and forecasting.
Create an efficient and well utilized team
Cloud spend is set to grow rapidly in 2021 and Cloud businesses with a highly motivated and efficient team will be best placed to capture this opportunity, however, an inefficient team will add time and expense to service delivery and slow the rate of growth possible to a business.
Internal teams need to be motivated around a shared vision to find solutions to improve processes and utilize their time effectively to deliver services.
Businesses need to empower teams to identify areas of inefficiency and work collaboratively to find solutions. Automation of tasks, time tracking and shared digital workspaces should all be considered.
Create a customer acquisition engine
As Cloud businesses assess the best ways to capture the increased opportunity in 2021, a streamlined customer acquisition engine needs to be created and maintained. This engine should be built around current services to maximize existing opportunities and then rolled out to new services and markets.
To create this customer acquisition engine, businesses need to understand their customer journey and outline all customer touchpoints. Moving beyond a simple sales view, a customer journey map should account for the full customer lifecycle and be used to identify opportunities for improvement. This map will highlight two areas of focus to streamline activity:
A wholistic cost per acquisition (CPA)
Current conversion rate of each service
Cloud businesses should redistribute spend to high impact areas to reduce this CPA and remove blockers to conversion. Doing so will create a streamlined customer acquisition engine and generate more customers for existing services. Once installed this process can be remodelled to launch new services and into new markets.
Embed a culture of continuous improvement
For any Cloud business embedding a culture of continuous improvement within teams will enable current services to be delivered efficiently.
Developing a shared mindset around continuous improvement will create a self-regulating business that is empowered to spot inefficiency and develop solutions.
Lay the foundations for this culture through a review of internal language and shared brand values. Ensure management embed this by creating the space and opportunity to review processes and tasks.
Successful Cloud businesses in 2021 will be those that continually review their exciting services and ensure the sales and revenue potential is maximized. Developing the mindset of reviewing and optimizing will then allow business to scale more easily and explore new areas.