Customer Success: Balancing the Value OF Customers with the Value FOR Customers

//Customer Success: Balancing the Value OF Customers with the Value FOR Customers

Customer Success: Balancing the Value OF Customers with the Value FOR Customers

By | 2019-05-09T21:42:20-04:00 October 14th, 2018|Customer Success|Comments Off on Customer Success: Balancing the Value OF Customers with the Value FOR Customers

Customer Success Organizations are the Linchpins in Delivering and Capturing Value

“The purpose of a business is to get and keep a customer. Without customers, no amount of engineering wizardry, clever financing, or operations expertise can keep a company going.”  ― Theodore Levitt

Never has the importance of keeping customers been more important than in today’s subscription economy. SaaS companies (and any other subscription-based business) know that acquiring the customer is only the beginning, and in order for them to grow revenue, they have to rely on these hard won customers to continue buying from them while becoming loyal advocates who serve as references and help feed the top of the funnel.

Customer Success Funnels

This is best done by preserving the balance between the value OF your customer and the actual value you deliver FOR your customer. Customer Success organizations are vital to fine-tuning this balance. By focusing on the solutions their customers need, rather than the product they are selling, they are implementing ideal customer success strategies that are focused on preserving this balance.

Strategies for Preserving the Balance

  1. Choose your customers carefully Mutual success (Value OF and Value FOR) depends in large part on proper segmentation and targeting of customers. Having the right customers, who align with your solution and are willing to invest their own resources to being successful with you, is the first step in ensuring alignment – and success. When segmenting, consider the needs, behaviors and profile of the companies, and continue to segment both prospects and existing customers so that you can always remain aligned with their needs for value attainment.
  2. Know the value you provide Don’t try to be everything to everybody. Know exactly what you offer to whom. Revisit your value proposition by studying your existing customers and reflecting on who you are to them and why they bought. A simple exercise in clarifying your value proposition is to complete the following:
  • We are ________________
  • We offer for our ____________ segment
  • Who are looking for _______________
  • Our unique offer includes ___________
  • Our additional benefits include ___________
  1. Always be delivering real value Continuous engagement (and loyalty) of customers comes from the ongoing delivery of value. Remember that “no customer wants a quarter inch drill. What they want is a quarter inch hole.” Using agile customer success strategies is the ideal way to stay on top of knowing what your customer considers real value, and delivering that on an ongoing basis.

It’s an ongoing process

As selling no longer stops with the acquisition of new customers, it’s more important than ever to match your solution with what your customers need to derive true value. This alignment is a balancing act which begins with the hunting for new customers and continues through the life of the customer. Critical to preserving this balance is segmenting, being clear on your value proposition, and continuously assessing and engaging to deliver that value TO your customers – so that you derive value FROM them.

Learn more about incorporating solution selling into your Customer Success Organization by viewing a free webinar: 4 Key Elements of Solution Selling to Reduce Churn and Expand Sales

About the Author:

Dr. Deva Rangarajan, Ph.D is an Associate Professor of Marketing and the Director for the Center for Professional Selling at Ball State University.