In the previous post in this series on the Business Benefits of Customer Success Management (CSM), I talked about Preserving Revenue by improving customer retention and lowering churn.
Now I want to look at the third business benefit Forrester cites in their report “An Executive Primer to Customer Success Management.” and this time it’s New Bookings.
Customer Success Management Drives New Bookings
By effectively managing customer relationships, Forrester found that the Customer Success Management organization help to ensure a steady stream of client referrals and advocacy. Make no mistake, brand advocates serve as a powerful virtual sales force for your company, bringing new customers into the fold that you may otherwise not have been able to reach.
In fact, Forrester found that the spend on your company’s product and services by an advocate is exponentially higher than that of a non-advocate, and the report goes into the specific details on that.
In addition, brand advocates bring measurable economic value to the company by increasing new business bookings, which, due to the high-trust nature of their source, often have more than a three times-the-average customer lifetime value (LTV).
It’s clear that Customer Success Management is critical to the growth and long-term success of Subscription businesses, especially Enterprise SaaS companies.
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 covered in this post.
I encourage you to download 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.