The 3 D's Of Customer Success

I am often asked, "What is Customer Success?" And it seems like that should be an easy answer, right? Wrong! Why's it so hard to explain to people not in Customer Success?

Customer Success can be tricky to put your finger on. Typically because the in's and out's of it vary so extremely from organization to organization. Some companies have growth goals (and even quotas) for CSMs. Other's hold the belief that CSMs should not carry a quota or number and should be solely focused on either a retention or churn rate.

Well then, how can we explain what Customer Success is, at least at a general level?

Luckily, Customer Success can be quantified in a simple framework of "3 D's" and I'll walk through each below. Keeping in mind there are variables abound, here's what, at it's core, Customer Success comes down to.

I believe that if you are not "doing" these "3 D's", you aren't "doing" Customer Success.

Number 1: DEFINE

We must define WHAT success is for our customers. This definition is created using the formula: CS = CO + CX. Their Definition of Success (CS) is equal to their Desired Outcome (CO) plus their Desired Experience (CX). Meaning if we can deliver the same or better Outcome and do it in the same or better Experience, than our competition, we will have delivered a higher volume of Success.

To do this, however, we have to understand what they want (Outcome) and how they want it (Experience). This is done by executing Success Planning. Whether by way of The SuccessPLAN Canvas or another methodology, we MUST define what Success "is" for our customer, so we can then deliver that.

Also keep in mind, within each customer account, you'll find varying definitions of success. The Executive Stakeholder's CO and CX will be very different than your Champion, which will in turn be different than your End Users. Each will likely come down to "Pains" to relieve and/or "Gains" to achieve. Time Savings, ROI, and more will surface as we develop Desired Outcomes and identify Desired Experiences.

Number 2: DELIVER

Once we've defined what success is, in terms of Desired Outcomes and Desired Experiences, we can now DELIVER on that Definition. Every day, week, month, and year, we are constantly delivering value and marching the customer along their journey from point A to point B, C, D...Z. Tactically working with them to realize value from our products and services. In Customer Success it's our job to make sure they know, without a shadow of a doubt, all the value that we are providing and that they are incurring.

This takes place by way of product and service adoption, first and foremost. They can't receive value (to later be realized) if they don't use what they bought. So from square one we track not only adoption metrics but also engagement. How are they using the product/service? Is there a better way to do so? Do they have "shelf-ware", meaning are they paying for things that they are not using? All of these data points help illuminate what we can do to ensure they realize maximum value and become an Optimized Customer.

Number 3: DEMONSTRATE

The final D is to Demonstrate the value you've been delivering. Equally important to DELIVERING value is DEMONSTRATING it. Meaning if your customer doesn't know it's happening...don't do it! It's like a tree falling in the forest without anyone there to hear it.

How do we Demonstrate value? Simple: Business Reviews.

This is why EBRs (Executive Business Reviews) are a critical component of effective Customer Success Management. Without Demonstrating value to our customers, we can't expect them to realize all the value on their own. So we MUST find a way to show them, to ensure they realize and acknowledge the value they are receiving, by way of our products and services.

That being said...get CREATIVE with how you Demonstrate value. Don't drag your Executive Sponsor into a QBR every quarter, if they don't want to attend. QBRs are a great way to Demonstrate value but can be overly time consuming and tedious for your customers. In fact the average VP of any organization has 13 SaaS vendors they pay. Each of those companies have CSMs trying to get them to attend a Business Review every Quarter. If they said YES to every request, they'd spend countless hours each month just sitting around having their vendors tell them how great they are.

How can we get creative with Value Demonstration? Much more to come on that...and why I think QBRs are STUPID in general, in a later post. But for now, take Spotify's #Wrapped2021 campaign. This is an Annual Business Review, done at massive scale, all to Demonstrate the Value we received from our $9/month subscription last year. In the hopes that we don't cancel their streaming service next year. Innovative insights about listening habits and behavior, while reaffirming to us, the customer, the value we incurred last year.

So there ya have it. The 3 D's of Customer Success: DEFINE, DELIVER, and DEMONSTRATE not only what success "is" but also how we have (and will) get them there. Please let me know your thoughts below, I'd love to hear 'em!