by Customer Success (CS) is a hot topic…CS in the SaaS world has taken a hammering as companies hit headwinds. But done well, CS is a growth and value driver you would never switch off. CS is about enterprise value; retention; growth. But it is also at the beating heart of subscription fundamentals – effective CS leaders know exactly who the customer is, the problem they solve for, and how they solve for it.
Over a series of Substribe discussions here are a few nuggets from the talk tracks.
“It’s tempting to think rebranding support teams will magic up better results. And when you add the promise of AI you can add even more magic! But to unlock value, start with the end in mind. The end state is the customer buying more from you. Again and again. Test for value with use cases and focus on ideal customers. Don’t put CS to the test on anyone with a pulse and a budget.”
Andy Burden
Slaying myths
Twenty years ago, I created the first “Client Service” team at Datamonitor. Even now, CS is much misunderstood. Let’s slay some myths.
CS is not a:
- rebrand of password reset support
- dumping ground for failed salespeople
- cost centre full of ‘nice’ people
Real CS is strategic:
- Defining and challenging goals and outcomes for customers
- Joining the dots to help customers reach their goals
- Reframing questions from customers to reach their goal
Measures of commercial value
How do you know if CS is working? When it drives commercial value for the business AND the customer.
Customer value
Customer sentiment – use this to discover what’s lurking around the corner.
Does your customer perceive your solution is valuable?
Use the “Must Have Score” (TM) to measure performance.
This is worth 50% of your value stack in a big corporate/enterprise subscription.
Use insights from the customer sentiment narrative to close your value gaps.
Business value
Revenue retention – use this to double down in your brightspots.
Is your customer still buying and/or spending more on your solution?
Use Gross Revenue Retention and Net Revenue Retention to measure performance.
This will be different by segment and lifecycle. It is multi-dimensional.
Profit mindset
The best CS teams have the mindset of a profit, not a cost, centre. They are not subservient. They are leading the charge across the company, to both protect and grow the installed base.
CS leaders also pinpoint, with near forensic detail, the next new customers to bring on board. Knowing why they will stick around.
Open mindset
CS should be early adopters of AI. Empowering them to move away from monotonous tasks.
As long as that results in speaking with clients. Not sending emails!
Focusing on driving effective usage of the solution. Making every interaction a foothold on expansion.
“Customer Success is the most effective way to connect a business with its customers and markets. It supports the evolution of product and navigates new opportunities. A mature function serves as a critical customer interface for Product, Marketing, Sales, Technology, Finance and more.”
Neil Challice
Your customer success approach should be giving you the edge. It’s not a nice to have. It’s a competitive necessity.
Need help?
Here’s a good place to start.
What are your ideal customers doing to improve their performance?
How does that strategic imperative cascade through their organisation?
And where do you fit in?
Contact andy@substribe.co to get you the answers.
Leave a Reply