Customer success is an effective method for evaluating your customers’ journey. It helps ensure that customers derive value from your SaaS solution. It’s a key component for customer retention since people are more likely to be happy with — and remain a subscriber to — solutions that help them reach their goals.
Companies that deliver their solutions through a SaaS format depend on positive customer relationships. When customers achieve success, they not only are more likely to maintain their subscriptions, but they also will have a heightened interest in additional products and services.
Because of the impact of customer success, it is crucial for SaaS companies to operationalize customer success. This means finding a solution that automates and integrates customer success into the customer journey. Here are some considerations for finding the optimal customer success solution for your organization.
Understand your customer success goals
To find the best solution, you need a good handle on the problem. Are you experiencing a high rate of churn — the measure of how many of your existing customers are being lost through attrition? Customer success solutions can help measure customer activity and create workflows that connect with customers and encourage net negative churn.
If your goals are to expand revenue and reach new customers, then you can leverage existing customer success as a sales tool. Solutions can help you communicate with your customers to determine their sentiment about your product and services and determine your Net Promoter Score or NPS.
This metric identifies your existing customers’ opinions on their relationship with you and the effectiveness of your SaaS solution in achieving their goals.
NPS is determined via a survey, where you ask existing customers whether or not they would refer others to your solution. A high NPS means that you have more promoters than detractors. NPS is a good baseline metric for determining your customer success needs because dissatisfied customers won’t recommend your company. And, a large number of detractors or neutral responses may mean that you have deficiencies to be addressed.
Customer success team style
Another consideration when determining the right customer success solution for your organization is how you manage your customer success efforts. Some industries and customers require a more hands-on approach than others. The question boils down to how you engage with your subscription customers, post-acquisition.
If your customer success efforts are mostly internal, with phone calls, video conference meetings, or use of client-facing collaboration and project management tools, then you’ll want a solution that integrates with these systems. Alternately, if your customers expect one-on-one face time, then you’ll want to develop systems that allow for remote employee interface and calendaring to maintain a consistent and accurate process.
Customer success is one area that can become complex and difficult to handle at scale. The differences in approaches between inside and outside customer success efforts are just one example. Also, face time with a customer can be highly effective at maintaining positive customer relationships, but the approach isn’t scalable.
If growth is your goal, finding ways to keep a pulse on your customers without having to pop in their office every month is a priority. Also, as operations and customer bases grow, analytics can become difficult without an automated solution.
A customer success solution should be able to grow with your organization and manage responsiveness to your customers’ growth, too.
Know your average revenue per user
A final consideration also looks closely at the types of customers you have from a revenue standpoint. The average revenue per user (ARPU) helps you plan for scalability. Understanding this helps you value the role of each customer and plan resources accordingly.
If you have a high ARPU — common with organizations that serve a smaller number of high-ticket customers — then you’ll likely want to focus more resources on delivering a personalized approach. These high revenue customers may want more handholding, and also are the big fish that your competitors will be targeting.
In contrast, lower ARPU customers are ideal accounts for automation. These customers will benefit from customer success solutions that schedule and operationalize customer success efforts. The right customer success solution can enable your organization to efficiently manage lower ARPU customer success, without losing connection.
Customer success is a crucial component of SaaS success. The right customer success solution provides visibility into customer behavior. It augments the customer lifecycle, so goals are set and monitored, and value is delivered across the board. SmartKarrot is a broad solution to every customer success need.
With customizable tools, dashboards, and abilities to run NPS among other factors that influence and illuminate customer success, SmartKarrot helps SaaS companies retain customers.