Customer Success is the fastest growing role of our time in SaaS companies and also in traditional businesses with a subscription model. What is it exactly and why is it important?
- Customer Success is a methodology to manage customers and their experiences with your product - from the beginning to the end of a license agreement.
That's right. The CS team is responsible to capture the customer needs and define the necessary interactions throughout the customer lifecycle. This requires a solid understanding of your product and organization.
- It ensures your customers achieve their desired outcomes and business goals when using your product or services.
Customers are not paying for the software you built, the fancy UX or those pretty coffee mugs you send every quarter. They are paying for results, for the solutions to their aching pains and challenges.
In its essence, Customer Success should aim to address three main revenue drivers:
Improving the retention rates of your customer base can lead to significant increases in profitability. It's highly inefficient in any business model to waste high customer acquisition costs by failing to deliver what was promised and seeing customers leave through the door.
What is then, the biggest enemy of retention? Churn. Customers will cancel their contracts with you, unaware of your best intentions to serve their needs - it's a metric to keep you focused on better understanding your customers and respective cohorts.
Keeping customers paying for your service is not enough. As any organization growing and expanding their product offering, your customers will also see their needs increased. This can be translated into more license seats required, other features via cross-selling and any other upgrades that will increase the revenue amount gained from individual customers.
Negative Churn is valuable to understand the changes in revenue growth and help you drive initiatives that get the most of your product towards customers, identifying opportunities and new ways of delighting users.
The last pillar of our driver focus - word of mouth. The most explosive way of reaching new prospects is by means of recommendation. We listen and pay attention to what our friends, colleagues, and family are using or enjoyed learning. Although virality is not the same as network effects, it all starts with working hard (and smart) to increase the percentage of promoters within your customer base.