Key factors affecting B2B customer renewal decisions

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17 April 2013, Gas, Electricity

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An example of this is that the average product rating for SME respondents highly likely to renew with their supplier was lower than the average ratings given by this group for their suppliers' billing and account management performance. While price (a component of the overall product) is clearly an important factor, this result indicates that SME customers do not focus solely on product, and the support, service, and billing performance already experienced play a large role in the decision of whether to renew with a supplier.

MEU customers indicating they were unlikely to renew still rated the billing criteria of "timeliness," "accuracy," and "clarity" provided by their suppliers above seven out of 10, which indicates a respectable level of satisfaction within this area. This shows that even if billing is done well by suppliers, this is not enough to offset failings in other areas, and customer loyalty and contract renewals will not be protected.

Using Datamonitor's Energy Buyer Research, where interviews were performed with the person responsible for buying energy for the business in the UK, Datamonitor was able to provide a measureable set of objectives for suppliers to hit in order to create the best possible conditions for a customer to renew an existing contract. Using heat maps, areas of differing satisfaction for customers that are likely or unlikely to renew are clearly visible, showing which factors are influencing the renewal decision.

This comment is based on Retaining B2B Customers: Analysis of Renewal Drivers (April 2013, EN00009-022), which is available to purchase in our store. / / @DatamonitorEN

Source: MarketLine

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