If you’re running a software company, you know that customer success (CS) is paramount to the success of your business. What’s more, if you have a SaaS subscription model, your customers’ success should be top of mind from the start.
The challenge that companies face is that CS is often ambiguous territory and dependent on both technical and soft skills. For those reasons, it can be hard for some teams to secure the resources and time necessary for their best CS strategy.
As you are planning your approach for 2016, here are three powerful data points to help shape your CS organization:
1. Strong customer success programs are reducing some companies’ churn rates to under 1% (yes, seriously).
Climbing churn rates are any company’s worst nightmare. It’s hard to attract, vet, and onboard new customers—the last thing that you want to do is lose any of them. That’s why Mashery, an API automation service, has made service an important part of its DNA.
According to the OpenView Labs blog, Mashery places heavy emphasis on tracking the following goals:
- Value to the customer by using metrics to measure successful implementation and growth.
- Value to the company by breaking down the commercial value of CS through metrics like monthly recurring revenue (MRR), bookings, referrals, and references.
- Value for others on the team by assessing how customer success operations help product, sales, and marketing teams improve their own goals.
- Quantifiable improvements by monitoring continuous, rapid improvement.
2. Even a slight increase in customer retention rates can contribute to astronomical growth in profitability.
In 2013, Bain & Co. found that a 5% increase in customer retention rates had the potential to yield profit increases from 25% to 95%. The reason is clear: when customers love what you have to offer and feel that they are succeeding, they’ll stay with it. Why change something that’s working?
When customers feel that they’re getting value from your product and decide to stick around for the long term, the benefits to your business are immense. Here are a few things to keep top of mind when evaluating your investments in customer support technology and resources:
- An increased likelihood for word-of-mouth referrals
- Higher revenue and upselling opportunities for customers who continue to renew
- Higher product and app usage rates, which contribute to a company’s overall health metrics
It goes without saying that the ROI potential is immense.
3. By 2020, customer experience will outweigh the importance of price and product.
Yes, that’s a bold statement, but it’s what Walker’s found when analyzing the future of B2B customer experiences.
The bottom line is that buyers don’t have the time or patience to deal with lackluster services. They need the guidance and support that will put them on the shortest path to success.
The most forward-thinking companies will come out ahead, but it doesn’t matter whether you have the best product or technology. What matters is how you help your customers succeed.
The New Year is fast approaching, so start laying the foundation for a world-class customer success program today.