Should CSMs Be Called Business Strategists?

Lets Tip the Digital Scales ?? and talk about the role of Customer Success Managers will evolve as companies lean into digital scale and self serve.

Lets first start with the positioning of the CSMs -- Lets rethink the title 'Customer Success Manager' and instead call them 'Business Strategists.'

The term 'Customer Success' is a strong one—it clearly signals that we care about the customer and their success. However, as the role evolves to focus on strategic influence, proactive guidance, and deep relationship-building, it's clear that the responsibilities go beyond just 'managing' success.

A Business Strategist goes beyond traditional customer success duties. They become a key partner in helping customers achieve long-term business goals, orchestrate internal resources, and act as a trusted advisor. This means focusing on:

What a Customer Success Manager Typically Does:

• Onboarding customers and ensuring they understand how to effectively use the product.
• Providing ongoing support to resolve customer issues.
• Monitoring customer health and ensuring satisfaction and product adoption.
• Identifying opportunities for upselling or cross-selling.
• Acting as the main point of contact and building strong relationships.

How a Business Strategist Expands on This Role:

• Orchestrating Internal Teams: Coordinating sales, marketing, product, and support to ensure aligned efforts and consistent customer messaging.
• Big-Picture Guidance: Identifying strategic opportunities, helping plan roadmaps, and guiding long-term business objectives.
• Deep Relationship Building: Acting as a trusted advisor and developing consultative relationships with key accounts.
• Customer Advocacy: Representing customer needs internally to influence product development and company strategy.
• Proactive Engagement: Reaching out with insights, data, and growth opportunities.
• Data-Driven Insights: Using customer data to identify trends, predict potential issues, and uncover growth opportunities.
• Facilitating Workshops: Organizing sessions to align customer business objectives with product capabilities.
• Risk Mitigation: Anticipating risks and developing contingency plans.
• Scaling Best Practices: Developing and sharing best practices for effective product use, especially for large-scale deployments.

Basically, the CSM will take on a more strategic role, and leave the technical stuff to the SMEs and the How-Tos to the ecosystem of community members, partners, etc.

Industry Trends Supporting This Shift

• Focus on Customer Lifetime Value (CLV): Growing emphasis on long-term value over short-term metrics.
• Proactive Engagement: Importance of proactive customer engagement through data insights.
• Strategic Partnerships: Demand for deeper strategic relationships between vendors and clients, particularly in B2B.

Implementing the Change

• Role Evolution: Start with high-value accounts and gradually expand.
• Training Programs: Equip teams with skills in strategic thinking and consultative selling.
• Internal Communication: Clearly communicate the expanded scope and strategic value.
• Customer Introduction: Introduce the new title to customers, explaining the added benefits.

Measuring Success

• Customer Lifetime Value (CLV): Track improvements in long-term value.
• Net Revenue Retention (NRR): Measure growth from existing customers.
• Customer Satisfaction Scores (CSAT or NPS): Monitor satisfaction and advocacy.
• Expansion Revenue: Track additional revenue from existing accounts.
• Churn Reduction: Measure decreases in customer turnover.

Potential Challenges

• Customer Perception: The new title 'Business Strategist' might be seen as less customer-centric by some. However, this can be addressed through informing the customer that they have someone who is going to guide them into the future.
• Internal Team Dynamics: Shifting responsibilities could blur lines between customer success and sales roles. As mentioned above, the digital strategist is providing 'consultative' value.
• Skill Gaps: Current CSMs may need upskilling to handle strategic components of the role. This might be easier to learn than the products themselves.

The evolution from Customer Success Manager to Business Strategist reflects the changing nature of customer relationships today. This shift emphasizes the strategic value these professionals bring to their companies and clients. By focusing on long-term outcomes, data-driven insights, and proactive partnership, Business Strategists can drive deeper customer engagement and greater success for all involved.

What are your thoughts on this shift? How do you see the role of customer success evolving in your industry?

#takeawalkonthewilderside

PS: While exercising at the gym I thought about this topic and decided to dictate my into my phone. Then transcribed my recording, worked on it after the game and then had ChatGPT fine tune my article. While 70% of this article was generated by me, next time, I think I will go the non-AI route.