Getting the Implementation Right is Critical

The software industry is booming. Companies are investing heavily in new technologies, and software sales are at an all-time high. However, a recent Bain Customer Success Survey (June 2024) reveals a concerning disconnect: despite these investments, customer retention rates are plummeting. ?

The survey, part of Bain's 2024 Technology Report, found that a staggering 75% of software companies are experiencing declining Net Revenue Retention (NRR), a key metric that measures a company's ability to retain and upsell existing customers. This decline comes even as nearly 60% of these companies report increased spending on customer success teams. So, what's going wrong? ?

The answer lies in a fundamental misalignment between what software companies think customer success is and what their customers actually need.

The Bain survey highlights a clear discrepancy in priorities. When asked to rank the most important activities for customer success teams, companies buying software overwhelmingly chose "Assisting with technical implementation or deployment" as their top priority. Customers are looking for more than just a product sale; they need prescriptive steps during implementation. They require hands-on guidance navigating the new functionalities, interpreting the data the software generates, and ultimately, achieving their desired business outcomes.

Here's the crux of the issue: while this implementation and navigation support ranks highest for customers, the Bain survey found it's the least important customer success activity according to the software companies themselves. Many software companies prioritize activities like "Providing ongoing product training" or "Serving as a strategic advisor" – valuable actions, but not replacements for the initial, hands-on guidance customers crave during the crucial implementation phase.

This misalignment is leading to frustrated customers who struggle to realize the full value of the software they purchase. They're left feeling overwhelmed and unsupported during a period critical for adoption and success.

The solution is clear: software companies need to fundamentally recalibrate their customer success approach. They must prioritize implementation assistance and provide customers with the in-depth support needed to navigate the software and unlock its full potential. By meeting customers' needs during this crucial stage, companies can build trust, ensure successful deployments, and ultimately drive long-term customer retention. ?

Companies that prioritize customer success by meeting their implementation needs will be the ones to thrive in the long run. This is something that we are doing well at SambaSafety . We have a robust plan for customer implementations and onboarding, have training in place to assist our customers in all aspects of the solutions they are receiving, and have teams in place to answer How-To questions and offer guidance when needed. We can always improve; any organization can. It is this focus on continuous improvement and the understanding that while we are good we can get better that makes me excited for what the future holds.