{"id":1141,"date":"2016-12-14T10:38:44","date_gmt":"2016-12-14T10:38:44","guid":{"rendered":"http:\/\/amydowns.wpengine.com\/?p=1141"},"modified":"2023-07-14T13:28:25","modified_gmt":"2023-07-14T13:28:25","slug":"customer-success-where-to-start-and-what-to-expect","status":"publish","type":"post","link":"https:\/\/www.customerobsessing.com\/de\/customer-success-where-to-start-and-what-to-expect\/","title":{"rendered":"Customer Success: Where to Start and What to Expect"},"content":{"rendered":"\t\t
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Customer Success: Where to Start and What to Expect<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Amy Downs
First Published: December 14, 2016<\/a><\/p>

\u201cWhy do you think customers leave us?\u201d<\/h2>

When I asked our executive team this question two years ago, I received a variety of anecdotal responses: poor customer service, overselling and under delivering, lack of adoption across the organization. The multitude of potential reasons made for a foggy picture of the true pain points for our customers. And, without clear data to support the claims, it was difficult to determine what needed to be addressed most immediately.<\/p>

The truth is that customer attrition is indeed a complex problem that\u2019s rarely a result of just one trigger. Customers usually only head for the door after an onslaught of smaller frustrations. Death by a thousand paper cuts, as they say.<\/p>

Naturally, getting customer churn under control isn\u2019t an overnight effort. A Customer Success function with ears to the ground and the tools to flag customers at risk can make a big difference in whittling down attrition. But it takes time to build a program, and the journey requires commitment and investment from the whole company.<\/p>

If you\u2019re at the outset of a Customer Success program<\/a> and unsure of where to go next, here are the critical first steps to start your journey.<\/p>

Educate the C-Suite on the Business Value<\/strong><\/h3>

\u201cHow will a Customer Success program impact our bottom line?\u201d<\/strong><\/p>

In the boardroom two years ago, I could sense uncertainty. Customer Success seems like a no-brainer; after all, happy customers spend more, help you to understand how your solution fits in the market, and help you acquire new customers. But when you walk into the boardroom and start asking for investments in such a program, suddenly it\u2019s not a given.<\/p>

In conversations like this, it\u2019s important to be clear about your objectives and come prepared with the facts. Educate yourself so you can educate your team. Understand what Customer Success will mean for your company, taking into account your operating model.<\/p>

For the Lifesize executive team, for example, it was important to understand the value of increasing retention (and reducing churn) for a company selling a software-as-a-service (SaaS) platform. Having previously led a PaaS company to a 99 percent retention rate, I coupled my past experience with real world data and was able to offer some compelling evidence. A 10 percent increase<\/a> in retention for $2 million in annual recurring revenue (ARR) over five years netted more than $17 million in additional annual recurring revenue. \u00a0Also, company valuation is unexpectedly intertwined with retention. SaaS companies with\u00a05 percent annual churn<\/a>\u00a0will be valued 200 percent higher than a company at 15 percent.<\/p>

The proof was in the data, not just the philosophy. As a result, the team quickly warmed up to the prospect.<\/p>

But getting buy-in on the value of a Customer Success program is only the first step. Your next step will be to gear up for the battle, so to speak.<\/p>

Find a Tool to Support Your Success<\/strong><\/h2>

When a colleague and I first saw a demo of our Customer Success software, we shared a moment of pure joy. Thrilled, we put the phone on mute and exchanged an enthusiastic high-five. Gone are the days of tracking a multitude of customers on a spreadsheet and grappling with the different vectors that can help you determine the health of a customer relationship. It\u2019s frustrating and overwhelmingly ineffective. Our people were doing administrative work rather than spending time with customers, which is where their time is the most valued.\u00a0 When your company is scaling rapidly \u2014 as our company was at the time \u2014 this practice is all but impossible.<\/p>

Since the success of your program is in large part dependent on your ability to accurately identify when a customer is at risk of leaving your company, it\u2019s worth investing in a solution that can help you make this a reality. Again, data helps you make faster decisions, driving faster response and resolution.<\/p>

Here are a few questions to consider when evaluating a solution:<\/strong><\/h4>