Six Customer Success Activities You Need
Customer Success is a series of interrelated activities performed throughout the customer relationship lifecycle. The most effective customer success initiatives include activities from onboarding to expansion with an emphasis on assuring customers’ successful use of products. Typical customer success initiatives include multiple success-focused activities, yet nearly half of companies focus on just one or two.
Essential Customer Success Activities
Customer Success Activities Defined
Customer Success Activities Commonly Used
Source: Customer Success Practices and Metrics Study (December 2018)
Customer Success has become a widely used and universally accepted term to describe a variety of customer-focused activities. The term has many meanings: A department; a team; a role, a business strategy. Unfortunately, the broad use of the term has obscured the diverse and complex activities that underlie a potentially transformational initiative. This study examines the approach companies use to organize, deliver and measure their Customer Success initiatives.
A well-defined CX strategy combined with an effective Customer Success (CS) operating model can yield significant and tangible benefits including retention and expansion of existing relationships and the strengthening of your product and service reputations.
The current organizational structure of your Services team and alignment with other customer facing resources may inhibit your ability to retain customers and expand relationship value. Organizational alignment, increased cooperation, and shared goals are key to customer retention and revenue expansion initiatives.
The terms Customer Experience (CX) and Customer Success (CS) are commonly used within the service industry. Sometimes CX and CS are used to describe the same or similar things and other times to describe complexly different actions, activities and outcomes. This article offers definitions for each term and identifies similarities and differences between CX and CS.
There are many approaches to achieve service success and each company must chart its own unique course. Regardless of the path, there are five principles that all companies must embrace. Every company must have an established CX plan, attainable goals, well-defined service programs, optimized service capabilities and the means to measure and improve performance. These five principles establish the foundation from which to define, execute and achieve tangible, positive service outcomes.
Net Recurring Revenue is a comprehensive indicator that reveals the extent to which you are retaining, expanding and growing customer relationship value. Examining the specific underlying elements that contribute to the calculation of Net Recurring Revenue provides the necessary insights to identify the root causes of churn, attrition and contraction. In addition, examining the reasons for revenue growth presents opportunities to embrace and expand practices that encourage expansion of relationship value.
The term Customer Success seems to permeate the industry with nearly every company engaged in some type of success initiative. The focus and awareness of Customer Success is timely and refreshing. This does not imply that technology companies have not been focused on making customers successful in the past, but this emphasis on Customer Success creates a new level of awareness and commitment to truly impacting customers’ ability to derive benefits from technology. Customer Success has profound implications for the ways that companies engage, serve, and retain customers.
This article introduces four key milestones to help you define essential Customer Success capabilities.