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If you are into customer success (CS) then you must already be knowing that the main goals of CS are to renew subscription and expand customer accounts. As a proficient technology provider, you should realize the importance of different stages in the customer journey. And if you want to make the
If you are into customer success (CS) then you must already be knowing that the main goals of CS are to renew subscription and expand customer accounts. As a proficient technology provider, you should realize the importance of different stages in the customer journey. And if you want to make the most of the customer journey, then LAER model is something you must be aware of.
There has to be a proper understanding of different stages of customer journey. When you break down the customer journey into these stages, it becomes easier to focus individually on those stages to finally achieve your business goal, i.e. revenue generation.
The subscription-based business model is relatively new for software companies. There is a massive shift happening in the company’s strategies as they are adopting the SaaS delivery model. The traditional strategies required for one-off purchase are no longer effective. Companies need to invest more on customer engagement strategies that help them gain recurring revenues from the customers. Hence, the LAER model is one such strategy that you can implement.
This is one of the customer engagement models introduced by Technology Services Industry Association (TSIA) that helps companies drive business growth. It basically encompasses the four stages of a customer journey as mentioned below:
As we saw in the definition above, there are multiple teams involved in executing this model. Each of these teams have a particular goal in mind that ultimately serves the overall business need. So, let’s see how these teams can execute these stages in the customer journey.
Although marketing and sales teams are majorly responsible for acquiring a new customer, some elements of customer success are also involved here. By taking cues for an ideal customer, they design strategies for new customer acquisition. Following steps are needed in landing stage:
Once the sales process completes, you need to help customers start achieving value from the product. Onboarding and time to first value are the important steps that you must execute with utmost proficiency. This is how you would execute the adoption stage in the LAER model.
Using the right customer success KPIs, you would know when the customer has adopted the product. When you are sure that the customer has gotten comfortable with the product, it would be the right time to approach them for more business. Below are the steps needed for account expansion.
No matter how many products or solutions you sell to your customers, until they renew their subscription for the next period, your customer success efforts are incomplete. Renewal is not just something you hope for. You have to pursue the customer through various steps towards this end.
All these stages in the LAER model require proper orchestration by the customer success director. Different customers are at the different stages of their customer journey. Hence, you would have to switch between different steps needed for them. The journey from LAER model beginner to LAER efficient takes time, experience and continuous learning.10
By keeping a keen eye on your installed customer base, you can leverage this model to drive business growth. And once you get a hang of it, your customer success efforts would start reaping further benefits.
Shoeb lives and breathes Customer Success and SaaS. He has a passion to research on the latest innovations happening in SaaS and Customer Success. Shoeb hails from a Software Architecture background where he worked for many years with Indian Tech Giants like Wipro and ITC building software solutions for their MNC clients in the UK and Denmark.
Published 11 Dec 2020, Updated 11 Dec 2020
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