LAER Explained: Strengthen The Customer-Supplier Relationship model

Last Updated: September 16, 2021
LAER customer supplier relationship

The LAER model is what thrives businesses’ growth by achieving customer success and obtaining their desired outcome. Apart from optimizing companies’ goals, corporations should opt for customer success and understand the lifecycle across the customers’ journey.

But what exactly is the LAER? Will you be assured that your company can reach all four objectives in the model and become “LAER efficiency”? Let’s go over the article and brush up on some of the basics.

What Is LAER Model?

There are four objectives in the LAER model. As more firms adopt the LAER model as part of their daily operations, it will continue to evolve. 

Land

Landing or finding the right engagement to target the customer is the first step in achieving customer success. Each company should look for different methods to attract and persuade its potential customers into buying their products or services.

Adopt

When your customers have had a chance to work with your company, the next step is to get them to fully utilize your goods and services. Customers must have effectively adopted or been able to meet their demands through these products and services.

Please keep this in mind: Customers that are highly adopted and satisfied with their purchase are more likely to renew their contract. 

Expand

After you’ve identified your target customers and given them a chance to try out your products and services, you should move on to the third goal: expansion.

Expansion is when you unlock your business potential by introducing other products to your existing customer base. You need to encourage them to purchase advanced features of products or other types of goods and services that your company supplies.

Sales and Marketing departments should work together to leverage customer account expansion.

Renew

Renew is when your customers determine if the products and services make their financial sense to continue the relationship. You will enter the “Renewal phase” when customers confirm that they can discover value in deals and are willing to return.

Most of the company’s goal includes making customer engagement a regular practice. To do so, you have to thoroughly follow the other three steps above.

View more: QBRs in business

Who Is Responsible For The Different Roles In The LAER Model?

Different Roles in the LAER Model
Different Roles in the LAER Model

Even though the company goal is to expand new business prospects and propel the company forward, each department should be responsible for different stages.

There are at least three departments responsible for the LAER model: Customer Success, Sales, and Marketing.

Land

The Sale Team is mainly in charge of looking for potential customers. They are the best team that can organize step-by-step plans or use solid arguments for better understanding and targeting the right segment.

Therefore, to land in the right customer’s territory, there is no other suitable department than the Sales team.

Sales team customers
Sales team comes together to target customers

Adopt

Customer Support and Customer Success teams are the next two departments that help customers understand their needs. This knowledge is not something new since we often turn in for the Customer Support team to look out for help. 

But as for the Customer Success team, they will be the ones that contact customers and ask questions to learn more about what they do, their issues, and how they can help them achieve their goals.

Expand

Promoting products to existing customers relies on the Sales and Marketing departments. The marketing team will raise the awareness of new products or updated features of services as well as drive the engagement to all prospective customers.

The sales team will then get in touch with the existing customers and transfer the marketing information.

Renew

The three stages above significantly impact this stage; thus, all of the departments indicated up to this point are accountable for the Renewal phase. The TSIA (Technology and Services Industry Association) claims that this phase should be overseen by the Customer Success Manager or renewal assistant.

For more: Customer Engagement Model – The Essentials

How To Implement The LAER Model?

We will continue to show you each department’s tasks in utilizing the LAER model.

Land

If a sales team wants to land on the targeted customer’s territory, here are its steps:

  • Determine the needs, issues, and obstacles in looking for customers.
  • Define the value you intend to provide to your consumers.
  • Contact the customers through three approaches: Premium, Question, and Product approach.
  • Begin the sales process to achieve customer success in mind.

Adopt

It’s time for Customer Success and Customer Support to handle this phase!

  • Give out surveys and track product utilization.
  • Identify which features are being used and which are not.
  • Contact the customers and improve customer engagement. 
  • Encourage them to use more of the product’s features.
  • Identify and resolve any consumer difficulties. 
  • Continue to educate customers about new product features and how to use them more effectively.
  • Follow the procedures above until the user’s active time on the product increases.
internet task
Most of the tasks are done through internet

Expand

In our opinion, the expansion phase is the most challenging one. Even though the customers have grasped an idea of how to utilize the products, it’s not easy to persuade them to try other updated features or goods and services.

However, there are some basic steps to expand customer’s interaction with other products and services.

  • Show customers how the product has aided in achieving their business objectives.
  • Determine what other solutions you can supply and which the consumer requires the most.
  • Align the sales and marketing team to produce collateral for upsells and cross-sells sales pitches.
  • Update new offerings.
  • Encourage customers to share their purchases across their social sites.
  • Learn how customers prefer to hear from you, so you don’t waste time and money on unsuccessful communication methods.
  • Keep getting in touch with the existing customers.

Renew

Hold tightly onto your customers and assure them that they will continue to pursue the mutual relationship.

  • Recognize the early signals of customer turnover.
  • Address the issues as soon as possible.
  • Concentrate on customers whose renewal dates are approaching.
  • Reward them for coming back.
  • Make company accessible.
  • Never lose track of the customers.

Conclusion

When it comes to creating a successful relationship between customers and suppliers, following the LAER model will help both parties to reach their mutual goals and optimize the best customer engagement experience.

We believe that every company, from start-up to giant, should follow and understand the customer lifecycles to drive more revenue and expand brand awareness.

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