Customer Success Management is good for business, and Forrester confirms this in their report “An Executive Primer to Customer Success Management."
But what exactly is the business benefit of Customer Success Management? Why is it good for business?
Who Benefits The Most from Customer Success Management?
First, let’s explore what types of companies benefit the most from - or, more accurately, thrive because of - Customer Success Management.
Subscription Economy businesses such as Enterprise SaaS companies are most likely to see immediate benefit from a well-defined and implemented Customer Success Management initiative.
Due to the nature of a subscription business model and recurring revenue, and the fact that revenue is recognized over the lifetime of the customer, the need to maintain a healthy relationship with customers is easy to see.
The benefits of Customer Success Management become even more significant as a company matures and takes the primary focus off of rapid customer acquisition, to a more balanced focus where customer retention and per-customer revenue growth become significant for ongoing financial success.
The Real ROI of Customer Success Management
The great news is that the business benefit of a Customer Success organization is easily quantified, simply by determining a baseline of operations prior to implementing CSM, and measuring results after a period of having a dedicated team with a specific mission to manage customer relationships in place.
In their report, Forrester breaks down the three main areas of Customer Success Management business benefit - Expanded Revenue, Preserved Revenue, and New Bookings - which I'll outline over the next three posts.
Or, you can skip ahead and read all of Forrester’s findings on Customer Success - including the process they used to determine their findings - by downloading “An Executive Primer to Customer Success Management” right now.