The Journey from Support to Success
Customer Success is a strategy to maximize customer retention and create opportunities for revenue expansion within the customer base. It is not simply an organizational structure, function, process, team, or job description – Customer Success is a customer engagement and retention philosophy. It should be seen as a way of doing business that transcends all aspects of a company from the way it develops products to the way it sustains and expands customer relationships.
The journey from Technical Support to Customer Success requires more than a name change or the addition of a team of Customer Success Managers. To fully embrace Customer Success, Support must rethink its role and adopt new ways to engage, retain and grow customer relationships. Look to ServiceXRG to guide you on your Success Journey. Use the milestones below to get started.
Services and Insights
Customer Success Capabilities
Get instant feedback about your current capabilities and readiness for Customer Success
Get Ready for Customer Success
A full or half-day workshop to help you and your team assess the opportunity and plan for Customer Success
Live Expert Assitance
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Playbooks and Research
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Milestone 1: Readiness Assessment
What is Customer Success
- Customer Success is a strategy to maximize customer retention and create opportunities for revenue expansion within the customer base. It is not simply an organizational structure, process, team, or job description.
- Customer Success is predicated on the understanding that a significant portion of revenue and growth comes from existing customer relationships and that for technology vendors to grow relationship value their customers must be able to apply and succeed with the products they have purchased.
- Customer Success encompasses practices for engaging, serving, retaining, and expanding customer relationships.
- The primary measures of Customer Success are retention and growth of recurring revenue streams and expansion of customers’ relationship value.
Is Customer Success Right for Your Business?
Customer Success is a critical methodology for companies that depend on recurring revenues from license, maintenance, and other service subscriptions. Customer Success is not however just for companies that sell products as-a-Service. Companies that sell perpetual software licenses, equipment and devices can benefit from Customer Success to drive product adoption and to assure maintenance contract renewals.
Consider a Customer Success strategy if:
- Subscription revenue is flat or in decline.
- Subscription Churn is >3%.
- Customers cancel subscriptions or maintenance contracts because they report that they do not use or get value from products.
- Support or maintenance contract renewal rates are below industry average (80%).
- Significant opportunities exist to grow relationship value through product or service expansion.
- A quantifiable positive impact on competitive differentiation exists when customers adopt and use products to their fullest potential.
For companies that sell highly commoditized products or products that do not generate recurring revenues traditional customer service and product support services are likely sufficient.
Are you Ready for Customer Success?
Customer Success is an effective strategy to retain and grow recurring revenues. Customer Success is not, however, a minor adjustment to traditional service and sales practices. Customer Success can be disruptive and require dramatic changes to: Service programs; delivery strategies; staff roles and responsibilities; performance metrics; inter-departmental cooperation and organizational structures. You are ready to fully embrace Customer Success when:
- You have established clear goals and objectives for what you expect from Customer Success activities including defined success metrics and performance targets.
- You have executive level champions and sponsors willing to fund necessary investments and support changes to organizational structures and ways of doing business.
- You have a plan for funding success practices and supporting necessary staffing levels.
- You have defined the relationship between customer facing organizations and have a shared vision for how each role will contribute to overall customer success objectives.
- Your customers are ready and willing to engage with you in high value services focused on product adoption and attainment of successful outcomes.
Milestone 2: Define Your Success Strategy
Define Customer Success objectives.
Establish the level of investment required for Success.
Determine source for Success funding.
Forecast the benefits of Success.
Define the financial impact and expected returns from the investment in
Identify staffing and resource requirements.
Define organizational alignment.
Establish Success KPIs and performance metrics.
Identify champions and executive sponsors.
Milestone 3: Invest in Success
Define Customer Success Practices and capabilities.
Establish or modify service programs to offer success-focused services.
Identify staffing and resource requirements.
Define individual and Customer Success team roles and responsibilities.
Implement tools and infrastructure to enable Customer Success processes.
Milestone 4: Operate and Improve
Create a Success-focused culture within Support and across all customer facing organizations.
Create innovative services to accelerate adoption and customer success with your products.
Evolve and optimize how you measure success.
Promote and the benefits of success efforts internally and to current and prospective customers.
Leverage Customer Success as a competitive differentiator.
Let the world know that your success-focused approach delivers greater benefits faster.