Buzzwords like retention and growth from existing customers are on everyone’s lips right now. However, it is still common to see customer success as a cost center – a necessary function that requires investment but doesn’t generate direct revenue. However, this perspective fails to recognize the immense potential of Customer Success to become a true value center. As Mads Fosselius, CEO & Co-Founder of Dixa shared in Forbes, leaders need to shift the focus from cost containment to maximizing the value customers derive from products or services. Only this proactive approach, allows to make up- and cross-selling the key drivers of revenue growth.
While a proactive approach to being a trusted advisor for customers always was at the heart of Customer Success organisations, we need to redefine its purpose within the organization. Stop focusing solely on mitigating customer churn and reducing support costs! CS should be seen as the proactive force that maximizes the value customers derive from your products. Foster strong relationships and drive their positive outcome actively, so that the whole organization appreciates CSMs as the loyalty and revenue drivers they are. They can be your real differentiator to gain a competitive edge.
CS teams obviously have the potential to become a significant driver of revenue growth. But only a well-rounded strategy for retention and expansion enables them to fully tap into that potential. The key to this is leveraging actionable customer insights, to understand their needs and offer them tailored solutions. You need to identify additional value propositions, which eventually can increase your customer lifetime value (CLTV). This is what will position your Customer Success function as a crucial contributor to top-line growth.
World-Class CS teams foster their customers’ satisfaction and advocacy. They make your customer base want to grow with your products and spread the word organically. Those CS functions to this in a multitude of different ways: by delivering outstanding experiences, addressing customer pain points or exceeding expectations in various areas. Resulting from this, real brand advocates are fostered among your customer base, who actively promote and advocate for you in their networks. Moreover, they will provide valuable referrals bolstering your reputation and attract new customers.
Customer Success teams are in a unique position having a direct line to your customers. They are the ones that gather valuable data on customer behavior, product usage, and satisfaction levels. By analyzing this data, organizations can identify trends, uncover pain points, and make data-driven decisions to improve their offerings. These insights can inform product development, marketing strategies, and overall business decisions, further enhancing customer success and strengthening the value center approach.
The real key to empowering your CS team to be a true value center, compared to a cost center, is in fostering collaboration along the whole customer journey. No more siloing between Sales and Post-Sales, no gaps in communication with different support channels. Aligning all customer functions in your organization around your customer is what we call the creation of Customer Obsession Teams. Each functional team’s goals should be aligned with the customer success plans for your most strategic customers. By fostering cross-functional collaboration, you will break down silos and deliver a seamless customer experience, resulting in improved retention rates and increased customer loyalty.