Customer Success translates to Revenue
“Make sure that every single #employee in your company, from the front line to corner office, knows precisely what value your #customers are seeking and how he and she can impact it.”
— Tom Krackeler, Co-founder & CEO at Front leaf
Lets face it, Customer Support teams have traditionally gotten a bad rap because most care more about selling than serving. We know that when sales decline, companies will buy ads, offer new customers better deals than existing ones, deliver training, hold major events, and take any number of extraordinary measures to pump up revenue. They are passionate and precise about customer acquisition, but reserved and ignorant about customer retention.
So What Is Customer Success Anyway?
Traditional marketing models define a successful customer as someone who buys a product and doesn’t complain.
Customer Success emerged out of this transition towards bottoms-up sales and a focus on recurring revenue. Therefore, instead of simply looking at the big stuff in the customer journey, this team is tasked with demonstrating value to customers, such as one person’s order history or complaint record, a success model focuses on that person’s thoughts, both before and after every step. What did that client think? What worked? What didn’t?
Rise of Subscription Economy
There is an increase in subscription companies as part of a larger shift from the pay-per-product economy to the subscription economy. The term “subscription economy” refers to the business of offering product/service subscriptions to consumers.
Because of the subscription-based economy, relationships are becoming more important. Running a subscription company means there is a continuing relationship with the customer. Therefore, making customers successful is the most strategic approach to business growth for this economy
Loyal Customer equals overall growth for the business
Customer loyalty uplifts revenue and your relationship with customer helps reduce costs.
1 . Will be a brand advocate.
2 . They are insensitive to price and will be willing to spend a larger wallet. share, which increases customer lifetime value.
3 . Are less likely to churn.
4 . Loyal customer gives your team more time to focus on imroving experience for unhappy customers. Hence lower support costs.
Due to the quantifiable revenue impact of customer success, businesses are now investing in Customer Success.
Customer Success Strategy
- Understand the desired outcome of each segment for each of your products.
- List the steps required to achieve the desired outcome for each segment.
- Identify the success milestones and the logical advocacy requests associated with each of them. By the way, be careful. Not every success milestone is going to have an advocacy ask. Some success milestones will have an upsell opportunity.
- Orchestrate the entire advocacy process. If advocacy is really as important as we think it is, then we recognize that we need to put some systems in place and orchestrate this process.
“Until you know what it takes to achieve success from your customers’ perspective you will just waste valuable time doing things that will have little long-term impact.”
— Jason Whitehead, CEO at Tri Tuns