Everything you need to know about creating healthy customers for life.
It’s one of the biggest buzzwords in B2B, but unlike other fleeting terminology, “Customer Success” isn’t going anywhere. In fact, it’s becoming one of the most important factors across all types business—the difference between a company going broke and achieving mega-growth.
"Success consists of going from failure to failure without loss of enthusiasm."The success of your business is inherently intertwined with the success of your customer. If customers succeed using your product, they’ll continue using your product, and thus, your business will succeed. At its core, that’s what Customer Success (CS) is all about: ensuring your customers achieve their desired outcome while using your product. Of course, pulling that off requires people, processes, and—most importantly—data. After all, how can you help your customers succeed using your product if you don’t know when, why, and how they’re actually using it. That’s why Customer Success requires:- Winston Churchill
"The difference between Customer Success and Account Management is the difference between a backyard telescope and the Hubble."CS is the successor of account management. It’s evolutionarily superior. It pinpoints problems—and opportunities—happen by collecting and leveraging as many data points as possible about the customer. Furthermore, CS informs strategy; it helps businesses better understand the customer experience and lifecycle so they can improve it. On top of all that, Customer Success team members truly focus on the customer and how that customer can succeed, as opposed to only focusing on how the company can succeed. It’s a mindset shift that reaps big rewards for everyone.
"Businesses face renewal sales processes constantly. Each time a customer sees the monthly or quarterly or annual subscription payment, they wonder, should I be paying for this? Renewal conversations occur with much greater frequency than with perpetual software sales."Tech businesses that can manage these renewal conversations better are able to grow faster and require less capital. And CS provides the insight, organization, and team necessary to have the most productive, meaningful, and successful renewal exchanges.
"Customer Success is where 90% of the revenue is."Customer Success evangelist Lincoln Murphy concurs in this Forbes article, stating:
"The majority of the revenue from your relationship with a customer happens post-sale."That’s because with technology companies, opportunities abound to upsell and cross-sell. Customer Success provides a mechanism for not only creating these chances, but capitalizing on them. Let’s break it down in terms of a hundred hypothetical dollars of revenue: As you can see, the costs associated with acquiring a new customer often outstrip the revenue you’ll generate in year one. That’s actually pretty common in the subscription business model, and it’s all because of year two. Look at the costs associated with retaining that customer. They’re rock bottom. It’s almost all profit. That kind of ratio could continue for years with a solid Customer Success effort. This graph doesn’t even include expansion (upsell and cross-sell) or second-order revenue (advocacy). Strong retention provides a hard, high floor for growth in the subscription economy. CS is the only way to operationalize that retention.