Customer Success: the Good, the Bad + the Best Practices
Increasing customer retention rates by 5% increases profits by 25% to 95%, according to research done by Frederick Reichheld of Bain & Company. In other words, when disconnects exist within the Customer Success engine, it does not bode well for your organization’s bottom line.
Understanding where those disconnects exist and what to do about them requires cross-departmental alignment, visibility into customer usage data, and input from your customers. Here are four key elements to ensure your Customer Success practice drives revenue:
Ensure Sales, Marketing, and Customer Success Team Alignment
First, take a close look at your pre-sales and post-sales alignment. Your customers should have a seamless experience, from their first interactions with a sales agent through their ongoing relationship with a Customer Success manager. Even a small disconnect in the transfer damages the relationship and increases the risk of churn.
Perform a Customer Experience Check
Understanding why customers churn is critical to ensuring that they don’t. In many cases, customers are lost over preventable problems. Better visibility helps you not only retain customers, but also personalize experiences and drive additional revenue.
Understand Customer Usage Through Data Diagnostics
In addition to understanding why customers churn, it’s important to understand where they get value from your solution now and where they could increase their consumption. Real-time customer usage data is essential, and historical data offers additional context by revealing patterns of behavior and informing propensity modeling for the next best use case.
Identify Gaps in Your Customer Success Strategy
Your Customer Success strategy may be a well-oiled machine, but it’s always smart to frequently reassess and ensure you’re on the right path. Check out our Customer Success Do’s + Don’ts checklist as a first step.