They knew that they wanted to avoid the trappings of traditional customer acquisition strategies,
like long sales cycles or having to hire a VP of sales.
Not exact matches
The four critical factors are: (a) businesses with recurring revenue bases —
like a renewable subscription — are far better than ones dependent on constantly securing new customers; renewals are much easier and less expensive to secure than new
sales; (b) customer retention is absolutely critical — all customers are very costly to acquire and very easy to lose in a world of almost infinite choices; (c) businesses based on products that require constant replacement or renewal (the «razor blade» model) are much more attractive than durable goods businesses (
like selling refrigerators) where the products have very
long repurchase or replacement life
cycles and where the market could even fairly quickly reach saturation points; and (d) businesses that offer products or services that had a predictably high rate of obsolescence were much more attractive than those where the products had
long, useful lives.
With a simple purchase, it's a formality, but when it comes to something complex,
like a real - life solution to a complex problem, the negotiating can sometimes be the
longest step in the
sales cycle.
Dan Knott, director of Street and Racing Technology (SRT) at the Chrysler Group, acknowledges that Viper
sales have slowed: «The day supply is higher than we would
like, but roadster
sales are seasonal and fluctuate as you get
longer into the life
cycle.
Michael Chasin: If it's a
long sales cycle, you have to also kind of consider
like what your clients want, right.