How can you effectively communicate with customers to increase lifetime value?

I’ve learned from my own operational experiences an revenue leader, advisor, and board member that for SaaS companies to remain competitive, customers must be at the center of product and go-to-market decisions. Every team needs to optimize to create end-user value. To understand what really creates end-user value, you have to listen to customers — closely. Unfortunately, listening to customers is harder than it sounds. The volume and velocity of data that businesses are generating is mind-blowing. Ironically, most of this data is unstructured and trapped in emails, support tickets, Slack, call transcripts, user communities, and survey results. And, traditional customer data gathering exercises i.e. surveys and interviews are dicey.

In my work understanding the consumer is the key to success. It’s very important to acknowledge the their different needs and personalities not only in terms of the concrete product you are selling but in general! Digging beneath the surface of demographics and basic interests will give you the opportunity to build solid and long lasting relationship with them.

Adjusting the tone of voice of your messages to the consumers to match their unique personalities is an important step in building this relationship. And again you should always take peoples differences in consideration - one message does not serve all!

In my experience being a copycat and mirroring the customers way of speaking, repeating the last words in my head and calling customers by their names, it creates a feeling that you are on the same boat and supports mutual understanding and it really supports personalization and it builds a lasting feeling of importance to the customer and thus retention and customer loyalty is build.

Find out how to reach your consumers in a best way possible. Value for one could be useless for another. Personalizing the marketing strategy should be a must!

Be vary and mindful of the diversity of the customer. Our culture shapes the the way in which we see the world and how we can address each customer personally towards their culture of understanding, using simple and direct language making sure the customer understands by confirming and repeating they understood what you are communicating. Ask open ended questions and listen actively.

While these are essential, it's important to strike a balance. Over-communication or excessive follow-ups often lead to customer frustration and create a perception of micromanagement. It's crucial for customer success teams to understand each customer's communication preferences. Offering flexible options, such as self-service resources or on-demand support, can empower customers to engage with your product on their terms. This also (often) ignores critical aspects of customer success, such as onboarding, product education, or strategic account management. It's essential to allocate resources efficiently and ensure a well-rounded approach to maximizing customer lifetime value.

Effective feedback management requires a balanced approach. Instead of collecting feedback for every interaction, prioritize critical touch points. Focus on valuable insights and align feedback with long-term goals. Foster a culture of continuous improvement while using diverse feedback channels and incentives cautiously.

Building relationships and loyalty is valuable, but not all customers prioritize this. Some focus on product performance or pricing. Overemphasizing loyalty efforts can misallocate resources. Sustainable loyalty is complex, and a balanced, customer-centric approach is crucial to cater to diverse preferences.

In the SaaS industry, adaptability is paramount. The landscape is dynamic, with technology evolving rapidly, and customer preferences shifting accordingly. Your communication and customer success strategies must remain flexible and responsive to these changes.

As an IC (individual contributor) success manager, you are often on the frontlines. You understand customers more deeply than most. This is crucial to the success of any organization. As things often change in the SaaS industry you can be the first to identify trends. Truly understanding your customers can have major contributions to the growth of a company or harsh repercussions. Pay attention to what your customers are sharing, analyze the data, and build a sustainable feedback loop with leadership teams will increase the overall lifetime of your customers.