What I Think About When I Think About Customer Success
I’ve been involved with Customer Success Software for a while now and sometimes I make the mistake of thinking everyone understands what Customer Success is all about . So, to clarify, here is what I think about when I think about Customer Success…
In SaaS, REVENUE COMPOUNDS, this is the 9th wonder of the world (the 8th is compound interest — according to Albert Einstein) i.e. If you keep adding new customers AND retain the existing ones long enough, you will likely see huge growth and profitability. It’s simple (but not easy).
Customer Success is a practice that has developed in response to this new world of SaaS. It’s an evolving set of ideas, principals, processes and tools that are used by SaaS companies to maximize the value they get from their customers through time.
The old paradigm of Sell and Support, realizing all of your revenue up-front and looking to minimize post-sale interactions to a bare minimum is obsolete (in SaaS at least). Recent research indicates the average initial sale in SaaS contributes less than 30% of the lifetime value of the customer. That leaves a lot more potential revenue on the table, and a lot more work to earn it. This is why the traditional ‘funnel’ model for sales has evolved into the SaaS/subscription bow-tie model [below].
This evolution in business has led to the development of a new breed of software to optimize for the management of customers in the ‘post-sales’ environment i.e. Dedicated, custom-built CS platforms (rather than the endless array of general productivity tools you’re already familiar with, from email to spreadsheets to Helpdesk software to CRMs).
A well-implemented CS platform (like Akita) can manage most of your key repeatable Customer Success processes, track your key metrics, surface the right data and insights for the right people at the right time and give your Customer Success Managers time to focus on building long-term relationships.
This means, if you find the right solution and implement it well, your Startup can operationalize and automate:
- Customer Onboardings
- Product Adoption
- Customer Health
- The Customer Journey
- Playbooks
- Task management
- Key notifications…and more
Related Articles
Best Customer Segmentation Software to Utilize in 2024
Understanding customers at scale has come a long way. Back in the day, companies used simple attributes to carve up their customer base in some way to apply different resources to support and/or expand those customers. Boy was it blunt though! Generally, it never got far beyond segmenting your account list by their spending or […]
Best Customer Success Software for Your CS Department in 2024
If you are reading this, you are faced with a real challenge. Either you already manage a customer success function and your existing toolset is not fit for purpose, or you have decided to start a customer success department and want to implement the right software as a solid foundation for your Customer Success Managers […]
Top Customer Retention Software to Reduce Churn in 2024
Figuring out the right customer retention management software to help manage your Customer Retention goals can be tricky. It really comes down to what your specific goals are, what type of market you serve, the customer data you retain and where that data resides. There are some specific types of tools you should consider. Customer […]
15 Customer Onboarding Statistics and Trends in 2024 to Note
In the SaaS world today, each lead you turn into a customer is a call for celebration. Still, to ensure them a smooth journey and success with your product, it is crucial to first help them understand how they can use your product or service effectively to get all the benefits they offer in the […]
How to Become a Customer Success Manager: All You Need to Know
Nowadays, it seems that acquiring each new customer calls for celebration. Yet, their choosing you over competition is merely the beginning of a beautiful friendship, as retaining them is equally, or usually even more, difficult.
Voice of the Customer Best Practices and Tips in 2024
When we aim to understand someone or something, the first step is to listen or observe carefully. The same rule applies for customers. If you wish to truly meet your customers and understand their concerns and goals, you must not only solicit and gather their feedback but also act on it. This is precisely what […]
What Is Product Discovery: Definition, Benefits and How to Do it?
Developing, launching and promoting a new product or feature is not only time and energy-consuming but also expensive. This is why frustration is inevitable if the new feature of a product goes unnoticed or unused. To avoid that, companies must first understand market trends and customer needs to be able to create products that address […]
What is Customer Stickiness: How to Measure & Increase it?
Although customer churn and retention are the most important metrics that help you assess the overall health of your business, they often fail to explain why customers leave or stay with you. This is precisely where customer stickiness can help you. To answer the question “What is customer stickiness?” with ultimate precision, we must thoroughly […]
Best Customer Success Books You Should Read in 2024
Customer success is the backbone of a successful SaaS business. The way your CS team manages and nurtures customer relationships often determines the size and quality of your customer base and, therefore, affects revenue and growth. A smart customer success manager knows very well that customer success is a dynamic and ever-changing field where continuous […]