Customer Success Matters

As an executive search firm partnering with SaaS organizations, we’ve seen massive layoffs across all business units, including Customer Success. However, for companies in growth mode, this area is hiring. With new AI and tech platforms popping up left and right, competition is at an all time high. The role of the Chief Customer Officer (CCO) and overall function of Customer Success in an organization, is more important than ever.? A clear strategy for post sales activities is required to hold on to market share and stay ahead of the competition, driving an improved customer experience and retention. Putting everything on the Sales team's shoulders isn't sustainable, and subsequently impacts their bandwidth to close new accounts. Ensuring the organization has invested in a dedicated post-sales team is a win win for all!

CCO’s do more than just ‘keep the customer happy.’ They are instrumental in aligning the interests of the company with the success of its customers. This is achieved through assembling a talented and dedicated team of Customer Success Managers (CSMs) to function as the customer’s point person. They are responsible for implementing a multitude of processes, including smooth implementation and integration, strategic onboarding and training, continued support, relationship building, customer advocacy for product customizations, upselling and cross-selling of new functionalities, and more. These actions, if executed well, lead to customer satisfaction and contract renewals (hopefully multi-year commitments), that ultimately contribute to sustained business and revenue growth.

Strategic Goals in Customer Success

Implementing change is a struggle for most organizations, and resistance to change is simply human nature. Although the CCO and their teams are uniquely positioned to help customers maximize the value of using their product and driving adoption, they still experience challenges with churn and long-term customer retention. So what are some important considerations needed to create loyal customers, support product innovation, and drive continued revenue growth??

1. Customer Satisfaction?

Understanding and addressing evolving customer expectations is key. Keeping up with tech developments, ensuring seamless integration with existing customer systems, and proving value is derived from product usage, is all part of the mix. A critical benchmark or gut check on performance is an organization’s NPS score, or Net Promoter Score, which conveys reputation in the marketplace and overall customer satisfaction. The scale ranges from -100 to 100, with a score above 50 normally considered excellent. According to a survey by Customer Gauge, the average NPS score of tech companies sits at 58. Research on the Net Promoter System has also shown that companies with a high NPS grow faster, retain more customers, and are more successful than their peers.

2. Customer Retention

Churn is common in the SaaS industry due to the sheer volume of new products coming to market. Leveraging strong risk management and relationship skills are needed to assess customer concerns and mitigate risk. Companies benefit from focusing heavily on retaining customers as well as attracting new ones. According to a survey done by Hiver, it is up to 5X cheaper to retain your current customers than it is to attract new ones. Plus, the probability of making a sale to an existing customer is 60-70%. Long-term customers are essential for success, so leaders are implementing strategies to make sure their customers remain loyal and are not lost to the competition.?

These strategies include effective communication and training, upselling of services, and providing data driven insights during Quarterly Business Reviews that guarantee the customer is getting a solid Return on Investment (ROI). It’s also an opportunity to share product upgrades or advancements, like Generative AI.

3. Product Knowledge and Innovation

Keeping up with industry trends and ensuring the company's offerings stay innovatively competitive in the market is important. Customers are being sold products almost every second of the day, so CCOs need to be well versed on technology breakthroughs, work with product development to address feasibility, and effectively communicate the message to their teams as to why customers should stay versus go with the competition.?

According to Capterra’s 2024 Tech Trends Survey , 58% of U.S. buyers say they regret at least one software purchase made in the past 12 to 18 months. 42% of consumers feel as if they aren’t using the technology they purchased to its fullest extent. This is why it’s important to have dedicated CSMs who properly train customers on the software and routinely check in to educate and optimize their usage of existing product functionality. These touchpoints also provide an opportunity to share use cases for emerging product modules that address their business needs, all essential for retention.

4. Crisis & Escalation Management

Customer trust and loyalty are directly influenced by how SaaS tech providers manage escalations or a full-blown system crisis.? Research shows that about 60% of consumers won’t return to a brand after only a single poor customer service experience. But the situation isn’t hopeless. 67% of customers will stay if their issue is resolved during their first support interaction, proving that efficient incident management can instill confidence. Having a technical support team available all hours of the day and quick to respond can make or break a customer's brand perception. With prompt and transparent communication, along with swift resolution, a well-handled issue can turn into a demonstration of a company's commitment to its customers.

5. Customer Advocacy and Feedback Management

Effectively managing customer feedback, both positive and negative, is important for continuously improving product and customer satisfaction. CCOs understand feedback and constructively share with different departments ways to enhance overall interactions. Internal teams like Sales, Product Management, Technical Support, Professional Services, and Delivery must all be in alignment on the organization’s strategic goals for customer success.? Proactively anticipating customers needs, working collaboratively on product?customizations, and addressing any concerns contributes to seamless?experience.?

Encouraging and leveraging customer testimonials, case studies, and referrals requires strategic planning and relationship-building skills. With positive reviews, an organization can build a community of satisfied customers who advocate for their products and create brand loyalty.?

The Power of Data in Customer Success

Leveraging data continues to be a game changer when enhancing customer experience.? Showing tangible metrics and operational improvement year over year, has a sure-fire way of keeping stakeholders responsible for managing tech budgets, listening.

Customer Success teams are using data and analytics to help inform decision making, optimize product usage, and drive results in several ways:

Upselling/Cross-selling

Offering useful data empowers customers to make informed buying decisions. CSMs provide insights into features, functionalities, and performance metrics, enabling customers to see the value created by the SaaS product in their environment. This recognition often leads to increased sales, adding on new platform modules to the contract, driving revenue and further commitment.??

A survey by Microsoft found that customers are 90% more satisfied if companies offer online service portals and are proactive in sharing updates on new products and services the company is offering. Transparent communication backed by data builds trust between the organization and its customers.

Performance Metrics

Successful CSMs leverage performance metrics and key indicators that demonstrate the software's effectiveness. This includes data on system uptime, response times, or any other relevant benchmarks. Customers can evaluate the software's reliability and performance based on concrete data, so they are not left questioning whether this product is the best for their business. Data takes the guesswork out of the equation.?

ROI Analysis

ROI Analysis helps customers understand the value achieved by implementing the solution. Quantifying the positive impact on the client's business goals, supports the notion the tech investment is worthwhile, and aligns well with objectives. Depending on established KPIs, data presented could be on cost savings, efficiency gains, workflow automation, or other measurable benefits to illustrate the value proposition.?

Continuous Improvement

Customer needs and preferences evolve over time, putting an emphasis on?companies constantly making functionality and performance improvements. Regular updates addressing bugs, glitches, or development of necessary product capabilities, reported by users, is critical. Swift action on these issues and opportunities enhance the overall user experience. This focus on continuous growth, supports the customer’s perceived value of the software and highlights the tech company's dedication to customer experience.

Customer Success teams are faced with an array of challenges, beyond staying ahead of the competition and retaining their consumer base. With the strategic application of data analytics, teams are improving customer interactions, building relationships, addressing issues proactively, and creating brand loyalty. Experiences matter, especially after the sale is done.?