Maintaining healthy profit margins in a competitive market is a constant challenge. Your customers expect ongoing value for their investment, and they may turn to other options if they feel your services are not meeting their expectations. When properly managed, QBRs provide a unique opportunity to evidence the value highlight your accomplishments, realign with key stakeholders, and reinforce the value you bring to your customers' businesses.
QBRs are more than just status updates. By tailoring the content of your QBR to match the stakeholders’ interests and concerns, you safeguard — and potentially increase — the value of your contract, effectively protecting your margin and fostering customer retention.
What is a Quarterly Business Review (QBR)?
A QBR is a strategic business review that takes place every quarter between your team and your customer. QBRs are a forum to showcase the benefits your customers receive from your services, set the stage for future investments in the partnership, and highlight potential upsell opportunities that align with the customer’s long-term goals.
QBRs are the key to protecting margins
72% of buyers are looking at their suppliers’ contracts with more scrutiny than two years ago, making it more important than ever to demonstrate the benefits you bring to your partnership.
When customers and their stakeholders are unsure of their return on investment, they’re more likely to seek discounts, question contract renewals, or even look elsewhere.
Here are a few ways to protect your margin and optimise contract value:
1. Highlight achievements & outcomes
- Showcase key achievements and metrics that align with your customer’s business objectives. Back your claims with data from the past quarter, along with real-life examples of success stories, cost savings, productivity improvements, or revenue growth.
- Engage the customer’s key stakeholders directly. By quantifying the value you bring to the table, you make it harder for stakeholders to view your services as a mere expense, reinforcing your value proposition.
2. Align on business objectives
- Review and update yourself on your customer's strategic priorities. These may change, and your services might need to be adjusted to align with their evolving needs.
- Discuss any changes in their goals or markets. Explore how you can better support them to not only improve your service, but also reinforce your role as a strategic partner.
3. Address challenges proactively
- The QBR is your opportunity to address challenges or unmet expectations head-on. Present an updated strategy and demonstrate how it will better fit your customer’s needs.
- Engage stakeholders throughout the process for valuable guidance. Address concerns promptly to reduce the risk of stakeholders perceiving these issues as reasons to renegotiate or terminate the partnership.
4. Showcase future opportunities
- Introduce new products, services, or enhancements that can further support the customer’s objectives. Present these opportunities to the relevant stakeholders, positioning these offerings as strategic investments that will deliver measurable ROI.
- Use the opportunity to create upselling potential. Ensure that any upgrade or product you suggest is firmly rooted in the needs of your client.
Final thoughts
QBRs are an excellent way to reinforce your value proposition and maintain a healthy contract margin. By highlighting your achievements, aligning on business goals, and engaging with key stakeholders, you show your customers that your services are an investment in their success. This proactive approach not only protects your margin but also lays the groundwork for potential contract expansions and upsell opportunities.
Read more:
.jpg?width=316&height=237&name=The%20QBR%20Delusion%20-%20blog%20thumbnail%20(2).jpg)
.jpg?width=1920&height=1080&name=QBR%20discussion%20guide(1).jpg)