Customer Success: A Brief Guide for SaaS Companies
Gone were the days where focus on the product was the only thing a business needs to ensure company growth and say goodbye to those days where the sales and marketing teams were considered a company’s ’customer magnet’. A new term has been added to the business terminology that is worth adding to your vocabulary; it’s “Customer Success”.
What is Customer Success?
When a customer receives their desired outcome, then they’ll therefore continue to use your product which will result in your company to receive its own desired outcome; increased revenue, more sales and in other words, success. For a SaaS company, it’s important that a customer decided to use your product, but whether or not they’ll decide to continue using your product is the real deal-breaker. This is where Customer Success is crucial. Furthermore, you’ll need to guarantee your customer that they will achieve success which will in-turn, encourage them to renew their subscription every time.
When someone buys a chocolate bar, the value is already seen. They eat it, like it and that’s the end of the process. However, in the case of a SaaS company, it’s way more complicated than that. The customer does not see the value of the product right away, just the benefits. Your product, whether it’s an SEO tool or a landing page creator, has many features and can be used in a variety of ways, but each of your customers want your service for a specific purpose. This is where Customer Success comes in, you need to be able to provide your customer with constant guidance on how to use your product to its full potential. It’s all about focusing on how the customer themselves can succeed by using your product, not on the company’s success.
Customer Success =/= Customer Support
It’s worth mentioning that having a call-center at-hand whenever your client has questions regarding your product is not what Customer Success is all about. While Customer Success is all about lengthening the customer life-cycle and adding ongoing value, Customer Support is more on-the-spot help available to the customer. The idea of Customer success is to be able to help your client utilize the product — by using data, programs, processes and of course, people with exceptional communication skills — in the most effective way possible in order to achieve their desired outcome. Customer Success is more like a customer’s “blueprint”, you’re there for them in every step of the way.
It’s All Worth it in the End…
Managing your company’s sales and revenue may already be a pain-in-the-neck, but by having a Customer Success process, all you’ll do to your sales and revenue is watch them soar.
The number one issue SaaS companies usually face is the churn rate. By applying Customer Success strategies, you’ll allow your clients to see the continual value of your product. When you build a trust relationship with your customer, you’re also showing them that you’re investing in their success too, which will solidify their loyalty to your product.
In addition, this gives you a clear idea of your customers’ profile. By continuously engaging yourself with the customers and continuing to fulfill their goals will encourage them to commit to, not just the product, but the company as well. This will give you multiple valuable opportunities to cross-sell and up-sell.
Last but definitely not least is word of mouth. Customers will recommend your product and company to those around them and even provide testimonials. This will increase your sales, improve customer acquisition and probably even give more room for new market development.
Customer Success may have been a nice addition to a company some time ago, but now, it’s a newfound and necessary way to reduce churn rate, drive growth and increase revenue for SaaS companies.