Welcome and thanks for reading our Friday Round Up. Check back each week to read our responses to customer success questions. Have a question about customer success that you would like answered? Tweet us your question @bolstrallc and include #TalkwithTim.
I am a little late to the party here but wanted to go ahead and provide an additional response to keep this thread going. While many have suggested that “all wrong” is a bit strong, I would personally disagree, as in many cases it is all wrong! I have spent the majority of my career in consulting and customer facing roles within software companies, I have also been the purchaser/consumer of many B2B technologies for a large fortune 500 company. In this capacity, it is easier to see the breakdown from the customer’s perspective. Below are a few thoughts that I would like to share that I feel add to the good responses already proposed on this thread.
Great question. I apologize for the length, but this is something I am very passionate about. Here are some fundamentals I use to measure customer success:
– Use a Mix of Traditional & Success Driven Components: Scoring elements should be drawn from both traditional measures (e.g., NPS, software usage, revenue, etc.) as well as more specific success related measures (e.g., value achievement milestones). The right mix is specific to your business and will grow as your understanding of customer health evolves. I have found that there will be many limitations in your ability to effectively use your data and compromises will need to be made (at least initially).
Reducing the churn rate for your SaaS product happens when you properly align your engagement ecosystem to support the needs of your customers at every level. If your product empowers your customer to attain real value and the result of their usage of your product justifies the cost of ownership you are half way to a renewal. The other half of the journey start with a well-defined strategy to support users of your product as they work to achieve their required and desired outcomes. Success on this leg of the journey is usually the greatest contributing factor in whether the account produces a loss, retention or expansion of revenue at the point of renewal.