The discussion among customer success professionals, Shagun from What Fits, Anindra from Mately Extreme, and Darshan from the Customer Service Revenue team delved into the evolving landscape of customer success strategies. The conversation highlighted the profound shifts taking place, emphasizing that attention is no longer an aspiration but a given, with expansion emerging as the new revenue driver.
Evolution of Customer Success
The panelists shared insights into how customer success has transformed over the last couple of years. Initially focused on retention, it has now expanded to encompass the broader spectrum of customer experience. The macro corporate trend is shifting towards emphasizing Net Revenue Retention (NRR), particularly through expansion efforts like cross-selling and upselling.
According to Shagun, the investment community increasingly values companies that grow their existing business compared to those solely focused on acquiring new customers. This shift underscores the significance of NRR, where expansion has become a pivotal component.
From Customer Success as an Add-On to a Value Driver
Anindra highlighted how the traditional approach of assigning customer success as an add-on after sales has evolved. Instead of a sequential process, the focus is now on quarterly value reviews. This approach involves understanding the initial objectives and expectations during the sales process, and post-support, ensuring ongoing relationship maintenance and expansion.
The discussion revealed that customer success has moved beyond being a standalone function. It now collaborates with various teams, such as solutions, delivery, and product, aligning objectives and responsibilities to drive overall revenue growth.
Shifting Roles and Responsibilities
The conversation turned to the evolving roles within organizations. Darshan emphasized the impact of revenue leaders joining the customer success domain. With Chief Revenue Officers (CROs) and Chief Customer Officers (CCOs) influencing the culture, the dynamics between support, leadership, and sales have shifted.
The consensus among the panelists was that customer success is no longer an isolated function but an integral part of the revenue model. The roles within customer success have expanded, and responsibilities now include bridging the gap between different teams and driving sales.
Challenges in Orchestration and Skill Development
As the discussion progressed, the panelists acknowledged the challenges in orchestrating the customer success function. The need for individuals with a blend of technology skills and emotional intelligence poses a unique challenge in finding suitable talent.
Anindra mentioned the ongoing investment within their organizations to address this challenge. However, the lack of a single tool catering to the diverse needs of customer success remains a significant hurdle. The discussion shed light on the need for continuous skill development and onboarding processes to overcome these challenges at scale.
Internal Alignment and Support
Addressing the alignment of different functions within organizations, the panelists discussed the need for support from top-level management and founders. While there is a growing understanding of the importance of customer success, the challenge lies in aligning different functions and breaking down silos.
The conversation revealed that founders are gradually recognizing the critical role customer success plays in the overall success of the company. The need for a mindset shift towards valuing customer success as a revenue driver is becoming more evident.
Measuring Value for Customers
The panelists emphasized the importance of measuring value for customers. Beyond internal metrics like expansion and retention, understanding what value means to customers is crucial. The ability to showcase tangible outcomes, such as increased marketing campaign effectiveness or problem resolution, adds to the intangible but impactful value delivered to customers.
Key Metrics for the Board
The panelists touched upon the key metrics they would present to the board as Chief Customer Officers. Alongside traditional metrics like Revenue Expansion and Customer Retention, they highlighted the significance of Customer Satisfaction and Net Promoter Score (NPS) as indicators of customer happiness.
Pricing Models and Complexity
The conversation touched upon the complexity of pricing models, especially for companies with diverse product offerings. The panelists shared insights into their organizations’ approaches, ranging from segmented pricing based on usage to bundling different components. The consensus was that pricing models should align with the customer’s perceived value and the specific use cases of the product.
Future Focus
As the discussion wrapped up, the panelists expressed optimism about the future of customer success. They highlighted the ongoing efforts to overcome challenges, align functions within organizations, and continuously evolve strategies to meet the changing landscape beyond 2023.
In conclusion, the evolving role of customer success as a revenue driver necessitates a holistic approach, with a focus on internal alignment, skill development, and a deep understanding of customer value. As organizations navigate this dynamic landscape, the importance of customer success in driving growth and ensuring long-term customer satisfaction remains paramount.
Rakhin has over 10 years of experience driving business development and client services. In his prior roles, he stayed close to customers to understand their requirements and help them achieve their business goals. He is passionate about customer success.
Published January 01, 2024, Updated January 05, 2024
