Discussion on ROI is often given considerable attention at the beginning of a project or initiative as well as when a customer is looking to decommission or replace a solution set. However, ROI and valuation (or its perception) should be set as an ongoing milestone that customers evaluate throughout a solution lifecycle.

This type of high-touch support is a true differentiator that not only establishes trust, but also helps make good intentions a reality that fosters sustainable ARR.

Revisiting the topic of value derived from Microsoft Teams with your customers will position you as a trusted partner who is genuinely interested in ensuring they realize tangible, quantifiable returns from their investments.

In a recent poll, the Technology Services Industry Association (TSIA) received input from its member community suggesting customer renewal rates will be challenged in 2020-2021. In fact, approximately 60 percent of respondents indicate that renewal rates will be decreasing.

During its October 2020 earnings call with investors, Microsoft CEO Satya Nadella revealed that Microsoft Teams now has 115 million daily active users. That’s a more than 50 percent rise from the 75 million that Microsoft reported almost six months ago.

This subject is timely for a number for many reasons.

It’s a common practice for customers to request discounts when they renew – or for vendors to reduce prices when securing contract extensions.

But survival in business isn’t just about treading water. Successful companies capitalize on trends that present opportunities for growth. If customers only renew with watered down versions of existing contracts, solutions providers cannot grow.

The law of diminishing returns shows these practices will lead to a point at which the level of revenue or benefits gained is less than the amount of money or energy invested. As time goes on, continuously reduced revenue from your most loyal customers will have a negative compounded impact on profitability —and now is not the time for that.

On Thursday we will explore this further with a new blog:  Are You Maximizing the Value of Your Microsoft Teams Investment?