Customer Success (CS) is a multi-faceted strategy for empowering, retaining and appreciating customers. According to the Precision Marketing Group, the strategy encompasses initial brand impressions, on-boarding, value realization, engagement and the establishment of brand loyalty. A pragmatic CS plan will enable customers to utilize goods or services in the best way possible and give businesses an insight into the upcoming issues that need to be resolved. The customer success team led by a CS manager plays a critical role in formulating a success plan.
Why you need a competent CS team
Here are the benefits of having a competent success team, according to Forbes Magazine:
1. Leverage strong feedback loops
A pragmatic CS team can champion or advocate for the changes demanded by the customers by planning future iterations, monitoring client needs, eliminating crippling bugs and placing emphasis on feature development. A lot of ground can be covered if the listed initiatives are implemented at the start of the business. In this case, the early customer feedbacks can inform the immediate and future product improvements.
2. Grow the sales velocity
The growth of the revenue streams attributed to CS across various industries is a testament that enough efforts are needed to create very effective CS teams. The team is tasked with several key responsibilities, including collecting and sharing success stories. The experiences and information can be shared with prospects as a strategy to expand the business reach. Because of their pivotal role, CS managers can assist the CS team to accelerate and close sales.
3. Reduce churn and work out ways to increase customer lifetime
Although most startups are characterized by slow starts, businesses tend to pick up once the initial hiccups are cured or resolved. A CS manager can maximize customer retention and increase business profits by reviewing the strength and weaknesses of the current CS strategy. The recommendations from the review can then be forwarded to the relevant teams for implementation. Whilst focusing on assisting customers to achieve success in order to increase lifetime value, the CS team should continually facilitate product and process improvements.
Depending on the business organizational structure, CS managers usually report directly to the Chief Executive Officer, Director of CS and Chief Customer Officer, who oversees entire customer relationship management. The other operational areas of a Chief Customer Officer include handling editorial matters and marketing programs. The Director of CS is charged with overseeing the accounts, customer health, priority issues, and rising business trends.
User IQ is a hugely successful firm focused on helping businesses realize the full potential of Customer Success. It is important to reiterate that CS means much more than stringing together a good CS team, an analysis of customer metrics, product metrics, and business metrics counts just as much. According to User IQ, business metrics can help a business owner track revenue streams and stay informed about the on-goings in the business. The key business metrics to watch include:
• Customer Churn Rate – the Customer Churn Rate is measured by analyzing the number of customers downgrading or canceling their subscriptions with a company providing the service. The agreeable limit for SaaS entities is 5% or less.
• Revenue Churn Rate – the Revenue Churn Rate is measured based on the lost revenue emanating from the cancellation or downgrading of service subscriptions.
• Customer Acquisition Cost (CAC) – Customer Acquisition Cost is the expense that goes into acquiring new customers. The cost should decrease with time as the business gain visibility in the market and attracts more customers.
• Customer Lifetime Value (CLTV) – the Customer Lifetime Value is the total revenue generated by the respective customer accounts. Growing businesses should be able to grow the CLTV over time, more so at the retention and advocacy stages of CS implementation.
Get in Touch!
If you need help with anything from increasing your business revenue to driving business outcomes and reducing churn, UserIQ is here to help your business turn the corner. The number to call is (404) 417 – 3307. You can also visit the company website to learn more about the offerings. The company offices are located in Dunwoody, CA.