Even though the Customer Success bandwagon feels like it has been gathering pace for some time, there are still many organisations at different stages of their business life-cycles wondering when to “pull the trigger” and implement it.
If you are a company that has a subscription model and/or relies on reoccurring revenue, in my opinion, the answer is a simple one – “NOW!”. Put simply, Customer Success ensures that your customers achieve their desired aims with your solution and by doing so, will renew, grow and advocate on your behalf to their peers. Given that the cost of acquiring a new customer is in the region of 10x the cost of renewing a customer, this makes both business and financial sense.
In the Age of the Customer, you can no longer acquire your way to success
Even before you decide to hire an individual Customer Success Manager (or build an entire team), it is important to recognise that this, in of itself, is not a magic fix to a business that is not customer-centric. Customer Success is an ethos that needs to permeate through your entire business; especially for any customer-facing teams such as Sales, Marketing and Finance. This should be led by the CEO and C-Team who should view every single interaction as an opportunity to “wow” your customer and by doing so, build brand loyalty. This is especially important in a world where there is so much choice between software vendors and the differences between products is getting fewer and fewer each day.
Customer Success is where 90% of the revenue is
If you are still uncertain about whether you are ready to implement a Customer Success framework, here are some of the signs that might indicate your need to do so ASAP:
I try and convince everyone in the world that it boils down to one metric….it is the most important metric in your company if you are a reoccurring revenue business…. that metric is “Net Retention”. What Net Retention means is, if you never sold to another customer, is your customer-base a growing entity?
We need to get every part of the company to understand why the business exists (beyond creating value for stakeholders) and that's to ensure customers achieve their Desired Outcome. Fail to do that, and you won't exist for much longer
Author Bio: Adam Joseph
Founder of CSM Insight who had previously spent 15 years managing Customer Success organisations for leading businesses. Passionate about all things Customer Success and recently voted as a member of the "Top 100 Customer Success Strategists" in 2018.