What We Can Learn From T-Mobile About How To Keep Customers and Grow Revenue Following an Acquisition

The reason to buy a company is to take what you purchased and grow it. Unfortunately, what often happens is that companies let the customers of the companies they acquired slowly get picked off by the competition. Instead of growing the new base of customers, the new base dwindles away.

You can buy a business but you cannot acquire customers. Keeping customers requires trust. After an acquisition, that trust must be built.

When we buy something big, we all experience buyer’s remorse. It’s that moment of time where we are nervous that we made a bad decision. (You may have some buyer’s remorse on the company you bought!) At that moment, the sale is very vulnerable to cancelation.

The same thing happens to customers after an acquisition. The customers of the acquired company get acquisition remorse. They are nervous. The customers of the company you acquired are vulnerable.

Sprint has provided my cellular service for over 10 years. Recently, T-Mobile acquired Sprint. Personally, I identified with the Sprint brand, seeing it as a maverick against the giants, AT&T and Verizon. I enjoyed the benefits of unlimited data and good pricing.

Following the acquisition, I’m nervous about T-Mobile. I don’t know much about their brand. Right or wrong, I see T-Mobile as a discount carrier. I’m concerned about losing my unlimited data and favorable pricing.

Several months into the new relationship, I’m impressed with how T-Mobile is handling the transition. In this article, here are a few things I’ve noticed that we can learn from T-Mobile.

Explain the Main Benefit

The first thing T-Mobile did was explain the benefits of the acquisition. I received several emails and letters explaining that the combined resources of the companies will allow me to not only keep my unlimited data but also get access to a more robust 5G network. They have backed this up by carpet-bombing TV commercials to reinforce that the new company has more 5G coverage than AT&T and Verizon combined.

I’ll admit, as a customer I was nervous that Sprint was falling behind in the race to the fast internet that I want. The primary message of the acquisition is that we are vaulting ahead of the established players. As a trailblazer, I like this.

What is the main benefit that your acquisition offers your customers? T-Mobile buying Sprint gives me more 5G meaning I get to stay ahead of the tech curve. This helps alleviate my nervousness. What benefit could you offer?

Offer Perks

The week that T-Mobile announced the acquisition to Sprint customers they rolled out T-Mobile Tuesdays. The very first perk was free access to the MLB Network for the rest of the season. Now, as I watch the Blue Jays, I feel goodwill towards T-Mobile. Since then, they have given me magazine subscriptions, 10 cents off gasoline, a T-Mobile face mask, and even a free Whopper. Every Tuesday, I look forward to the notification on my phone that tells me I have a new perk.

Another perk is Scam Protection. This handy app automatically screens out scam calls. I like that!

What perks could you offer to your customers? How could you build goodwill and make the relationship fun?

This may sound like unnecessary fluff. However, when you buy a business, the customers are nervous and afraid. These are negative emotions. If they are not overcome with positive feelings of goodwill, your newly acquired base is at risk of slipping away.

Build the Relationship

I hope you have a consistent cadence of meetings and touchpoints with your current clients where you stay in tune with their business goals and challenges. (If not, starting to conduct Periodic Business Reviews is a simple, low-hanging fruit process change you should implement right away!) Build a relationship with your new customers. Don’t just send them a letter. Learn about their business goals. Get to know their people. Offer Periodic Business Reviews as one of your perks.

Building relationships with your new customers does two things. First, it protects the accounts. Second, it sets the stage for cross-selling additional products and services into the account. That’s where things get good. Not only do you keep the customers from the acquisition, but you also grow them!

Make a Plan

Are you planning to acquire a company? If so, I recommend that you make a customer retention plan before you do the acquisition. It is probably a good idea for every company to do this proactively so that when they do make a purchase, the plan is ready to roll.

Originally published on Convergo.

About the Author

Darrell Amy: Start Your Revenue Engine

Darrell Amy

Darrell is passionate about helping generous leaders and their organizations grow revenue and impact. He’s the author of Revenue Growth Engine and the soon-to-be-released book, Exponential Growth. Darrell motivates audiences as a professional speaker, sparks ideas in growth mastermind sessions, and serves on the board of several innovative companies.

More Growth Resources

Kingdom REI : Revenue Growth Engine with Darrell Amy

Kingdom REI : Revenue Growth Engine with Darrell Amy

Darrell's goal is to help ten thousand business owners double revenue in the next 10 years so they can give ten billion new dollars to Kingdom work! In this episode, Darrell shares his strategy and framework for building sales and marketing processes that can double...

The #1 Challenge For Sales and Marketing In the Next Decade

The #1 Challenge For Sales and Marketing In the Next Decade

Without oil and grease, the most beautiful sports car with the most powerful engine will not make it out of the garage. Oil and grease reduce friction, allowing the cylinders to fire and the wheels to turn. Business is the same way. Without the right oil and grease,...

Why Paying Attention Is the Key To Effective Marketing and Sales

Why Paying Attention Is the Key To Effective Marketing and Sales

The most important role of marketing and sales is to pay attention to the outcomes that prospective clients want. This is also the most neglected part of the marketing and sales role. Now, more than ever, marketing and salespeople must be listening and adapting. Clay...

Kingdom REI : Revenue Growth Engine with Darrell Amy

Darrell's goal is to help ten thousand business owners double revenue in the next 10 years so they can give ten billion new dollars to Kingdom work! In this episode, Darrell shares his strategy and framework for building sales and marketing processes that can double...

The #1 Challenge For Sales and Marketing In the Next Decade

Without oil and grease, the most beautiful sports car with the most powerful engine will not make it out of the garage. Oil and grease reduce friction, allowing the cylinders to fire and the wheels to turn. Business is the same way. Without the right oil and grease,...

Why Paying Attention Is the Key To Effective Marketing and Sales

The most important role of marketing and sales is to pay attention to the outcomes that prospective clients want. This is also the most neglected part of the marketing and sales role. Now, more than ever, marketing and salespeople must be listening and adapting. Clay...

How Customer Experience Can Create Strategic Advantage

To hit your goals you need a competitive advantage. How can you create strategic advantage in your competitive marketplace where imitating competitors seem to frustrate your efforts to differentiate? The answer for strategic advantage comes through customer...

How To Create a Great Client Experience in a Virtual World

I look forward to visits to the Apple Store. As a fan of the brand and a tech nerd, visiting any Apple facility is a joy to me. (I even went out of my way to see the visitor center at Apple’s corporate headquarters last time I was in Silicon Valley.) So, last week...

Revenue Growth Engine with Darrell Amy System & Soul

Exponential growth doesn't just happen—especially on the heels of a global pandemic. We talked with Darrell Amy, author of Revenue Growth Engine and Visionary at Convergo. He explains how having an "architect mindset" has helped him succeed in training businesses to...

Accelerate Revenue Growth with VIP Guest: Darrell Amy

 Darrell Amy, The Growth Architect and Author of the bestseller: Revenue Growth Engine, helps companies accelerate revenue growth. He shares his excitement about the impact of revenue growth not just for the business but in the community beyond. In this episode,...

Darrell Amy on The Business Power Hour

Darrell Amy is on a mission to help generous companies grow revenue faster. With 27 years of B2B marketing and sales experience ranging from mid-sized local companies to enterprise organizations, Darrell has diverse experience across the sales and marketing landscape....

Alignment to Accelerate Growth

Episode 156: Alignment to Accelerate Growth – Darrell Amy What got Darrell interested in writing a book The alignment between marking and sales and revenue growth The revenue growth engine processes The core numbers a business needs to know The power of interest The...

How To Market and Sell What Your Buyers Are Actually Buying

For those who are obsessed with their products, the superiority of their business, or the beauty of their brand, this statement contains a hard pill to swallow. As great as your products are, as experienced as your team is, and as responsive your customer service may...