The LAER Model tells how well your company performed in reaching out to each customer’s journey. Its four stages are Land, Adopt, Expand, and Renew. This article also elaborates on setting up phases and limitations related to the LAER model.
LAER Model
Overall, the LAER model represents a structure to develop an initial relationship with customers that builds trust between the company and the customers. Each stage of the LAER Model shows how well a company is performing in engaging its customers. So, customer satisfaction is essential in the growth of the business, and the LAER Model can help you engage the customers with your SaaS product.
Let us dive more into how these terms play an essential role in a company’s growth.
Land
The first stage of the LAER Model covers the part when companies try to attract customers and make marketing and sales strategies to win customers’ interest both online and offline.
Adopt
In the second stage, the customer makes purchases, and companies make efforts to make them regular users. This suggests that companies have to confront their customers to answer their queries and get the most use out of a SaaS product.
Expand
In this stage, companies focus to reveal to the customers a wider range of options. For instance, if a customer has developed loyalty to a specific SaaS cloud product then the company will try to encourage them to buy related products. That’s how companies will speed up their capacity to complete their business tasks.
Renew
In this last stage, the customer journey encompasses customers deciding whether they should renew their SaaS subscription or not. Companies will assure to regularly engage with customers to encourage them that they should stick with their services when the renewal date approaches.
How to set up a LAER Model?
If you want to set up the LAER Model for your organization to track customer success then you should follow the steps mentioned below:
Set up the land phase
In the land phase, you have to identify the customer’s needs, pain points, and challenges so that you can try to solve their problem through your product or solution. You can check the feasibility report of your solution to clarify the ways how your product can solve the customer’s problem.
Set up the adoption phase
In the adoption phase, you need to identify customers’ key stakeholders and come up with value propositions for customers. Then, keep your customers engaged by encouraging them to take advantage of different features and take customers’ feedback on what they liked and what challenges they faced.
Set up the expansion phase
In the expansion phase, hold business reviews meetings to observe the needs of the customers and show them the product performance which assists them to achieve their business goals. Also, set up meetings with the key stakeholders from the customer site to represent them with new solutions and monitor your sales process until the closure of the deal.
Set up the renewal phase
In the renewal phase, monitor the right KPIs in the complete journey of the customers and identify the customer churn that may include reduced active time on the product, number of logins, their queries, etc. Also, prioritize the customer for the service whose renewal dates are close and motivate them for brand advocacy.
What are the limitations of the LAER Model?
Despite having advantages, the LAER model has some limitations also which are as follows:
It has limited communication so it gets difficult to handoffs between sales and customer teams. As the software matures, the adoption of the product and its new features gets unclear. The renewal conversation is separated from the value and adoption of the platform. Lastly, in the customer journey, there is an uncertain insertion of specialist roles like customer advocacy, account management function or renewals, etc.
Conclusion
For a company’s growth, they have to make sure that the customers are satisfied with its products and services and that they get what they desire. And if a customer is not satisfied then it can result in a loss of revenue. The LAER model plays an important role in understanding the different stages of a customer’s journey. It is an important customer engagement model that can be very beneficial for the companies in their growth.
- How is the LAER Model important?
Ans. It helps you to focus individually on the stages to achieve business goals.
- How much duration does it take for the model to get business growth?
Ans. The journey of the LAER model from beginning to advanced takes time, experience, and continuity. If you keep a proper check of your installed customer base then you can easily use this model to drive business growth.
