Talk with Tim
Got questions about Customer Success? Ask Tim. Tim Conder is Vice President of Customer Success here at Bolstra, and has a wealth of knowledge he’s chomping at the bit to share. Ask him anything about how to get from your current state to an organization with best practices geared specifically toward helping YOUR team get YOUR customers to reach THEIR goals. Tweet #TalkwithTim or click here to submit your question.
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What are Customer Success parameters to reduce churn?
I interpret that your question is regarding measurements. Obviously, for any Customer Success team churn in dollars and logos is a top concern. However, what isn’t always discussed is why churn occurs. Or when it is discussed, we tend to stay focused on the obvious reactions from our customers who are churning. I hear of frustrations with functionality, missed expectations and lack of follow through. However, I feel there is a deeper underlining cause of churn that isn’t being discussed openly.
- Lack of ability to communicate unique value to the customer (Their value attainment, not our software value proposition)
- Alignment and buy-in to our vision for the market. Consequently, the customer may have been sold something that our teams are not setup to do (not uncommon in a startup environment)
- We don’t provide consistent opportunities to engage or the engagement we do provide is one-sided (all about our solutions and product not their outcomes)
It is important to understand the causes of churn you’re facing in your company. Here are 4 things you might consider to help you take this further.
- These must be things that we can track and measure effectively.
- SaaS industry as a whole is still relatively new compared to the software industry as a whole. You should treat your success params as unique to you, and for anyone that argues they have a secret sauce to this will likely let you down.
- Understand traditional vs value based metrics
- Traditional are things like NPS (or other survey’s), support ticket resolution status, product usage and subjective scoring (green, yellow, red) as traditional health scoring components.
- Value is their value attainment with your products and services. As Lincoln Murphy states, their desired outcomes need to be measurable.
4 . Value is also the work, activities, communication and engagement between your CSM function (inclusive of other support functions) and your customers. Work management and capture is a key component of health.
There’s more where this came from. Keep the questions rolling!