I recently sat down with Eric Sharp, from “1 to 10” Podcast to talk about customer success companies between 1 to 10 million in revenues (aka Startups).
What would it be like if you were the customer in your business?
If you’re anything like us, you’re dedicated to providing an excellent product or service and intently focused on the end result of production.
But when was the last time you took a look at not just your customer service, but the customer experience.
The time that a customer or client spends with you – or customer journey – is a dynamic experience. How are you helping them achieve their business goals? What kind of experience are they having?
Because when your customers succeed, your business succeeds.
In a nutshell, this is why customer success is so important.
The day to day frenzy of the pursuit of excellence is necessary, but don’t let it distract you from understanding what’s happening for your customer.
And although we first see the customer-centric model appear specifically in SaaS companies, it’s not trickling into many other businesses. If there’s a model that works for a whole cohort of companies, it’s something we should be keeping an eye on.
The old approach of “sell it and forget it” doesn’t work any more. Customers churn when they believe that their investment doesn’t result in their desired business outcome. It’s a reactive model that’s becoming less and less effective at engaging new clientele and retaining old customers.
Failing to make an adjustment in your customer experience could cause them to drop your product or service for ones they believe with help them meet their business goals more efficiently.
A lot of individuals reach out to CSM Practice in order to fight churn rate, increase adoption, or improve advocacy. They want to see who’s leaving and understand why, as well as track how new customer engagement is progressing. And it’s about more than just seeing who is coming and going. What are they saying about your product or service and brand?
Any company can benefit from taking care of the customer experience. But the extra effort is seeing what people say while they’re customers and when they choose to leave.
Who is singing your praises? What are detractors saying?
This is more about brand protection; it’s about pursuing an additional service so that others speak well about business outcomes. Your anticipated benefit from better advocacy is in the form of higher growth and better margins.When we think about customer success and why companies should invest in customer success, there’s really four goals that you really want to design your whole customer success program around.
Four Goals of Customer Success
A solid and effective implementation customer success methodologies and program, should be designed to accomplish 4 goals:v
1. Maximizing Monetary Value
This is in the form of renewals, expansions, upsales, crossales, etc.
2. Maximizing Non-Monetary Value
High advocacy rates, references, your product roadmap, etc.
3. Maximizing Monetary Value for Your Customers
This is the impact your solution – whether product or service – makes on the client’s bottom line and how you save them on costs or bring in new revenues.
4. Maximizing Non-Monetary Value For Your Customers
This framework was based on a a three-point goal setting shared with me by Boaz Maor, SVP Customer Success at OpenGov a while back.
This is where you show that goals align. Year after year, you should be aligned with the personal goals of the key stakeholders. We’re not just looking to impact the monetary value, but maximize the value of the key stakeholders.
Lack of engagement usually means you’re not aligned well with their needs. Having a well defined customer journey is important for continuity.
Going all in on this concept means making an investment of resources. Finding people that have a customer success focus as part of their role can come in many forms, but failing to address it could make a huge input in your business productivity.
In this podcast, I clarify that companies, no matter the size, age, or reach, should be interested in this customer journey and that there are ways to incorporate this into your best practices, regardless of where you are in your journey.
Resources & Links Related to Episode
- CSM Practice on YouTube
- CSM Practice Ebook (“The Ultimate Executive’s Guide to Customer Success Initiatives”)
- CSM Practice Newsletter
- CSM Practice Pinterest Boards
- CSM Practice on Twitter
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This blog post was originally published by 1to10 Tech and is republished with permission.