Tag Archives: Customer success

Unlocking Customer Lifetime Value: The Key to Long-term Success

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Introduction:

Customer Lifetime Value (CLTV) holds the key to long-term success in business. Unraveling the potential of CLTV is crucial for building lasting relationships and driving sustained revenue growth.

Understanding CLTV:

Customer Lifetime Value is not solely about revenue but about fostering enduring value for customers. It is a vital metric for gauging an organization’s growth and prosperity. For instance, consider a subscription-based service like Netflix, where a loyal customer who subscribes for years contributes substantially to the company’s CLTV.

Viewing Value from Different Angles:

CLTV is more than just revenue; it encompasses different perspectives of value. Identifying and aligning with the customer’s definition of value is crucial. An example could be a luxury car brand that offers exceptional customer service, providing value that extends beyond the purchase.

Applying CLTV in Practice:

Measuring CLTV beyond revenue involves assessing advocacy, referrals, and recommendations, which are immensely valuable. Forecasting CLTV requires a careful consideration of customer segments and past profiles. For example, a software company may analyze user adoption metrics to predict long-term value.

Customer Success Has Changed

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“Customer Success has changed”

The world has changed and very rapidly over the last few years and our what were “traditional” customer success teams and functions have shifted massively and there’s more change to come.

  1. Burnout was already high but now churn is rising and so are layoffs.
  2. The SaaS model that defined much of the 2010s and early 2020s was predicated upon having access to near-unlimited capital.
  3. Customer Success was already struggling through three distinct crises: Overextended roles, high stress and unrealistic expectations, and previous leniency on metrics.

It’s a wakeup call! We need to think differently and shift:

  1. Streamline Customer Success roles to focus on core value delivery.
  2. Adjust job expectations and provide sufficient support to prevent burnout.
  3. Identify which metrics matter to customers upfront and focus all your energy on driving those to demonstrate the value your solution provides early and often.

We need to start refocusing on customer value and change our thinking and approach.

Empowering Customers: The Key Role of Customer Education in SaaS Success

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Introduction:
In the rapidly evolving digital landscape, Software as a Service (SaaS) has emerged as a dominant model, revolutionizing how we interact with software. Central to this transformation is the concept of customer education – a critical element that not only enhances user experience but also drives business growth. In this blog post, we’ll delve into why educating customers is pivotal for SaaS companies and how it shapes the path to success.

Understanding Customer Education in SaaS:
Customer education in SaaS isn’t just about teaching users how to use a product; it’s about empowering them to harness its full potential. This is especially crucial in SaaS, where the subscription-based model and frequent updates necessitate ongoing user learning and adaptation.

The Benefits of Customer Education:
Educated customers are the backbone of SaaS success. They engage more deeply with the software, leading to higher product adoption and satisfaction. Moreover, well-informed users require less support, reducing the burden on customer service teams and fostering a community of loyal, informed advocates.

Strategies for Effective Customer Education:
Creating a robust customer education program involves several key strategies. It’s essential to develop comprehensive and accessible learning materials like tutorials and webinars. Personalizing these experiences to cater to different user segments enhances engagement. Incorporating interactive and engaging content formats keeps the learning process interesting, and regularly updating these materials ensures they remain relevant as the product evolves.

Navigating the Challenges:
Implementing an effective customer education strategy isn’t without its challenges. Catering to diverse learning needs and styles, balancing the depth of information without overwhelming users, and ensuring content remains up-to-date with product changes are all hurdles that need careful navigation.

Learning from the Best:
Looking at industry leaders like Salesforce or HubSpot, we see the profound impact of well-executed customer education strategies. These case studies not only highlight the benefits but also provide a roadmap for others to follow.

Conclusion:
In conclusion, customer education is more than just a value-add; it’s a critical component of the SaaS model. By investing in educating their users, SaaS companies can reap long-term benefits, including enhanced customer satisfaction and business growth. As the SaaS landscape continues to evolve, prioritizing and innovating in customer education will be key to staying ahead.

New Customers Only

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“New customers only”…

New Customers Only

… this is a phrase I really don’t like to hear but sadly it’s still widely used in many B2C industries and businesses – including the traditional home TV, phone and internet service providers.

Even as a loyal customer of many years, brand new customers can get significantly bigger discounts with these providers and this doesn’t seem right.

The logic being used feels outdated in 2022 and I’d love to see more companies focusing on delivering value at the right price and keeping customers. I think many of these companies are relying on customers finding it too difficult to leave and move elsewhere but even if that’s true today it won’t be for much longer.

It’s great to see some more niche players coming into the market offering very competitive services – e.g. home internet connections – and at consistent prices (for all customers).

Is it just me or is the idea of doing something in terms of a deal only for new customers, on its way out?

Combined thoughts on “Everything As A Service”

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These are some thoughts captured and co-written by Stephen Danelutti and Jason Noble, two long time contributors to the world of Everything As a Service (XaaS) who met again recently. We realised our common background and insights and decided to produce this combined thought piece – hope you enjoy.

Background

We worked at Sony together many years back and only discovered this recently when we met. Funny how our orbits work as people, and then you collide.

We worked in different parts of a division at Sony called DADC, which invented the CD and developed digital content streaming services. This was before iPod, iPhone and Spotify. Stephen has written about that, including a demo: The end of ownership and the rise of usership. This experience was a good precursor to our thinking on Everything as a Service (XaaS).

The as a service iceberg

We met when we both were (and still are) professionally in Customer Success management leadership roles, a function of SaaS companies that is, amongst others, being translated into XaaS. So we are both rather well positioned to talk on this topic.

Stephen is writing an eBook on the subject which you can find out more about here. We decided to use that as a framework (The As a Service Iceberg) for exploring our mutual thoughts. While we divided subtopics up between us, we worked collaboratively throughout to edit and progress in tandem and what you read is very much a joint effort.

 

Everything as a Service (XaaS)

There is a distinction between the purely technological view which is where the term XaaS comes from and the one we refer to in this article. In ours we have jumped from technology to other industries – we have “crossed the chasm”. Essentially we are talking about taking the learnings from the Software as a Service (SaaS) industry and applying it to other industries.

Some examples

SaaS has been around now for a good few years, and we’ve seen other as-a-service philosophies and approaches pop up since – most related to technology (e.g. infrastructure as a service) but there are more and more examples now across all industries. Some great ones include:

  • Mobility and transport – think of an extension of your Oyster card
  • Property – renting plus add-on services and services like airbnb
  • Shopping – home delivery pre-prepared meals
  • Healthcare – shaving services
  • Airlines – yes even some airlines are often monthly subscription
  • Digital content – not just music, but now movies, TV, games and books

It’s not just about what is being delivered, but how it is being delivered – and the level of experience offered that takes these examples into the true as-a-service arena.

In times of crisis, like COVID-19, there is a stronger need to justify new technology services and innovations, and many businesses are looking at rapid return on investments as part of it. We will see a continued development of new as-a-service ideas coming over the coming years that have been accelerated by the need to innovate and change.

The as a service iceberg

1. Customer solutions

This is the outward manifestation of all of the others and is all about solving problems and meeting needs. No longer is something purchased just for its intrinsic value but what it will help a person or organisation achieve. Several sub components or theories support this and some have been around a while:

  • Systems thinking views a system as a cohesive conglomeration of interrelated and interdependent parts and in the case of customer solutions, it represents how products are now increasingly being viewed as tangible goods plus services.
  • Business outcomes management entails identifying, measuring and achieving business outcomes for the customer, often with the help of Customer Success teams (see the next influence).
  • Jobs to be done theory is a framework for understanding customer needs and innovating around them with new offerings.
  • Solution selling is an approach taken by sales teams that incorporates a consultative approach to identifying solutions to best meet a customer’s needs in the most cost efficient way, especially with multiple product offerings.

More elaborated on this in this post: As a Service trend research – customer solutions.

2. Customer success

With the shift to XaaS, the way we interact, work with and deliver to our customers has also evolved. Our customers’ expectations have risen rapidly and we need to focus on what experience they require and want, and also what it is that they are ultimately looking for, in outcome or value terms. The idea from SaaS vendors, that gave rise to customer success, is that they work with customers proactively to drive value and growth for the customer, in turn justifying the vendors offering. The old reactive way was letting the customer figure things out for themselves after the sale. This has been a monumental industry shift and it’s one that is still evolving and maturing. The role of a customer success manager (CSM) is one of the fastest growing roles today as more and more companies understand that it is critical to their own and their customers’ growth and ultimate success.

CSMs are generalists and facilitators, skilled across the business, commercial, technology and product functions. They are uniquely positioned to be able to guide and help customers achieve the outcomes they need, through the (technology) services they acquire. CSM’s act as trusted advisors, facilitators, business and growth consultants, analysts, project and programme managers, even as change managers for their customers.

3. From products to services

This fits alongside the customer solutions view where products play a role in a much wider ecosystem that includes services. It’s not just about technology and technology products, it’s much broader. Having said that, technology does enable this to a far greater degree, see next point. Think about how Apple has taken its iPhone and built an app (and services) ecosystem that serves to add value to Apple hardware and creates new revenue streams for them and third party app developers. These apps are increasingly being sold on a subscription basis which is also interrelated. For the broader context which incorporates service-dominant logic, check out this post: As a Service trend research – products to services.

4. Technology ecosystems

Technology has played a massive part in the shift to as a service. As we’ve seen the rise of technology services over the last 30 years, many more traditional companies (for example content creators and manufacturers) are now working with technology partners, for their technology development and almost outsourcing it. The focus now is about being enabled and empowered to use technology, as opposed to having to own and build it directly. Think of your internal IT department and how that’s changed. They’re now there to help you better utilise technology within the business and integrate with much wider technology ecosystems with external partners.

5. Being data-driven

Collecting data and understanding usage so that it drives greater insight, which in turn drives better products and services, has become a competitive differentiator. Translating this data into meaningful insights is the real challenge that only the leading companies are mastering. Questions like who is using what, how much and to what end, with which outcomes, need answering. You also need to consider where the data is, who can access it and whether this falls within regulatory compliance or not. These are big questions that require a holistic approach. Data science is a growing field that serves this area well and smart as a service companies are investing heavily into building their capabilities in this. A data-driven, decision making culture is also imperative.

6. Customer and user experience

The terms user and customer experience are front and centre now when it comes to technology. This has been driven by the rise of the consumer application ecosystem and high bars being set by companies like Amazon, Netflix and Apple (amongst many others) in how they interact with customers. Customer experience starts from the initial engagement with your customers and potentially through your marketing campaigns and outreaches. It then follows through with onboarding and implementation, project management, delivery, support and more. The challenge is ensuring that you deliver a constant customer experience and that it is specific to that customer (or segment of customers). The key to remember is that not every customer needs, wants or expects the same levels of customer experience.

7. Subscription economics

One of the biggest aspects of the as a service business model is the shift away from one-off payments to recurring payments, or subscription economics. Products and/or services are purchased in this way (on subscription) and sometimes even on an on-demand basis. Especially for B2B firms, this has shifted the financial impact from big capital expenditures upfront (capex) to more manageable on-going operational expenditure over time (opex). Many factors that this model of payment enables, need to be considered. One of the foremost on the vendors side is the emphasis this places on ensuring the customer continues to renew their subscription (not churning) by providing excellent service. For this the customer success managers role is key. Conversely, this makes the model very flexible for customers who can stop payments if they are not receiving any benefit or value. Take a look at this post for some graphics covering other aspects of what makes subscription models successful: Subscription Model Success Factors.

Other examples of where we’re seeing this shift

The shift to as a service as we’ve said started off in the world of technology but we are now seeing it everywhere across all industries. Some great examples include:

  • Gaming – all the big players like Sony and Microsoft have game subscription services, and even Google and Apple are now also in this booming market. From our days back at Sony, this way an area that we both were both closely involved with – the digitisation of content and streaming services.
  • Groceries – this is one to watch. The big supermarkets all have loyalty plans and they know what we like to buy and when. It won’t be long before this data is used to determine what our weekly grocery deliveries should be and we pay for a subscription service and food is just delivered at the frequency we pay for, and best of all most of what is delivered is exactly what we need.
  • Technology – infrastructure as a service, platform as a service and more. With the like of AWS and Azure, we can now “subscribe” to technology services including CPU power and data storage (and the related sub-services) and we can expand or contract our technology operations in response to demand from our own customers (this is all part of the big shift we’ve seen over recent years out to the cloud).

Other considerations

Customer centricity

There’s a lot of talk today about organisations making moves to be more customer centric and it’s something we have spoken and written about many times before (see link here to previous blogs). It boils down to really understanding your customers, as an organisation and being able to be agile and responsive to change as your customers’ needs and requirements change.

From a previous talk Jason did with a firm of VCs, the reason being customer centric is important is not only the obvious – that your customers stay loyal when they have good experiences – but also as our customers keep evolving and changing, so too are the ways that we operationalise that and support those customers.

A great way to think about customer centricity that really resonates with us is – “A business is customer centric when it delivers on-going growing value to and for their customers.”

Business transformation

Becoming an as a service business is not something you can easily tack on, like a plaster. That’s because of the overarching reach of so many of the factors listed above that are required for success. So wholesale transformation is often required for long term success. That doesn’t mean you have to do it all at once – see diagram for different stages and an approach you could take. This is like a product portfolio view of the transformation and tackles it one stage at a time, eventually rolling up into wholesale organisational transformation.

Keep an eye out for more joint blog posts we’ll be working on in the future.

A practical guide to customer centricity

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We know the theory and we know we need to be more customer centric. The biggest challenge for many organisations is how do it, at both the strategic organisational level and at the more tactical operational level.

I’ve worked with and for many organisations going through their own journey to be more customer centric, at both large well-established global organisations and more niche startup organisations and have been privileged to be in positions with them where I’ve been part of that change.

One of the more strategic level changes that is crucial for success is getting your customer leadership at the right level. It’s great to see more and more organisations across different industries and sectors investing in Chief Customer Officer or similar exec level roles now and the number has grown significantly over the last few years (and continues to grow).

Having the right leadership gives you the voice of the customer at the leadership table, having someone focused on driving customer growth and value and bringing the customer conversations to the exec and board level.

I really like this concise definition of a Chief Customer Officer:

“An executive who provides the comprehensive and authoritative view of the customer and creates corporate and customer strategy at the highest levels of the company to maximise customer acquisition, retention, and profitability.”

The customer leadership role – Chief Customer Officer or other – gives you:

  • Visibility – to understand and see what is happening to your customers
  • Clarity – of what happens when a prospect becomes a customer
  • Balance of power – creating the 3rd organisational pillar (with sales and operations)
  • Sales focus – allowing sales to focus on new business without customer distractions
  • Feedback – into what is happening outside of the business (the so called magic loop)
  • Signalling – the external messaging that we are customer centric

The magic loop above is:

Plan and Build (product management and engineering) vs. Demand and Sales (Marketing and Sales) vs. Customer Experience (Customer Success).

At the more tactical level though – in terms of things you could do more immediately – here are a number of great practical ideas for driving customer centricity in your organisation:

  1. Create a mission statement that impacts your customers and that includes customers
  2. Be a customer – yes role play (across all teams)
  3. Visit your customers – all execs and, even better, all teams
  4. Implement a customer forum or community (customers talking to each other)
  5. Create a voice of customer programme (and close that feedback loop)
  6. Bring your customer feedback into every meeting across the business
  7. Democratise customer insights and make them visible to everyone in the organisation
  8. Link team compensation to the customer and have customer focused goals
  9. Hire for customer orientation and customer empathy (and onboard them like customers)

I really, really like Amazon’s mission statement:

Numbers 6 and 7 above can be very powerful when done well and I’ve seen the idea of a customer feedback wall used very well and to great effect – where you include and share the very, very good, the good, the bad and the ugly.

Do these ideas resonate with you? What things have you done in your organisations to drive the journey to being more customer centric? And what has the impact been with your customers?

If you’re interested in chatting customer centricity or customer success, please do reach out to me – I always love hearing your own journeys and challenges and ideas (and good coffee).

And don’t forget to listen to my latest podcast with Jason Whitehead from Trituns on getting your customer onboarding right from earlier this month. Click here to listen to this one and others in the series.

Being customer centric shouldn’t just be a concept

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Being customer centric shouldn’t just be a concept – we need to approach it as our company missions.

We’ve been trying to be more customer centric for a long while but only 14% of leaders think they actually are and only 11% think our customers would say we are. I’ve never met an exec or business leader who says that they weren’t customer centric.

From the Harvard Business Review last year – “The most common, and perhaps the greatest, barrier to customer centricity is the lack of a customer-centric organisational culture. At most companies the culture remains product-focused or sales-driven, or customer centricity is considered a priority only for certain functions such as marketing.”

Being customer centric

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A great way to think about customer centricity that really resonates with me:

“A business is customer centric when it delivers on-going growing value to and for their customers.”

I really like this because…

  1. It’s not just for the short term and the now
  2. It’s about the what (the value) and the who
  3. It allows for customers to include customers as we know them, employees and shareholders and investors

The reason being customer centric is important is not only the obvious – that our customers stay loyal when they have good experiences and the product and sales are delivering on our promises, but also as our customers keep evolving and changing, so too are the ways that we operationalise that and support those customers.

If you are customer centric, it means that you are observing that evolution that’s happening to your customer base, and you’re able to be very agile and nimble in responding to that as a business.

Being customer centric is easy to say but hard to do and it doesn’t come organically. It needs organisation wide buy-in and sponsorship, from sales, to finance, to operations, to support, to customer success, to delivery! We live at a time of unprecedented customer expectations both for business customers and our end consumers, and being customer centric is critical. Why now? Think about your ultimate consumers – they’re you and your expectations have changed. Forrester research have stated “This new world requires leaders to think and act differently” and George Colony, Forrester CEO predicts, if a company is not customer-centric, they’ll simply be out of business between 5 – 10 years. What are you doing to be more customer centric today? I’m going to share some practical ideas and examples over the next couple of days of things I’ve seen work very well with different companies.

“Customer Centricity is a journey and not a destination.”

Customer Success leadership as we move into 2019

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Copied from a  recent guest blog post that I did recently for Simon Cooper from KUPR Consulting.

2018 sees us well and truly in the age of the customer and we’re seeing more and more organisations rethinking about where their growth comes from and about the right level of investment needed in their customer facing teams (not just Customer Success). Customer Success continues to grow as a way of working, as a discipline and as a new exciting career option – the role of a Customer Success Manager has been the number one advertised job on LinkedIn in a number of different countries around the world.

With this growth, the need for very good Customer Success leadership is becoming more and more critical, to ensure we’re delivering the necessary outcomes for and growing value to our customers.

I’ve worked with and within a number of different technology organisations – both startups and global enterprises – and each has its own unique challenges and circumstances but with a number of common key themes.

Why is being customer centric important at the leadership level you might ask?

It’s not only the obvious, i.e. that your customers stay loyal when they have good experiences and when product and sales are delivering on our promises, but also as our customers keep evolving and changing, so too are the ways that we operationalise this and how we support our customers. You become customer centric when you deliver on-going growing value to and for your customers.

But it’s not just about having a Customer Success team and having Customer Success managers in our companies. Having a Customer Success leader gives you:

  • Visibility – to see what is happening to your customers
  • Clarity – to understand the changes when a prospect becomes a customer
  • Balance of power – the third pillar for focus (alongside sales and operations)
  • Sales focus – sales focused on new business with no customer distractions
  • Feedback – understanding what is really happening outside of the business
  • Signalling – that critical external messaging that we are customer centric

I had the privilege of co-hosting a webinar recently with Jason Whitehead (the CEO and Founder of Tri Tuns) where we talked through some of the key questions around Customer Success leadership. Some of these are covered below – you can also find the webinar recording and details of other ones in this series here.

The challenges today

There are some amazing Customer Success leaders internationally and I’m lucky enough to know a good number of them (and I’ve learnt so much from them) but there are some big challenges that we’re facing. I’m going to look at a number of these now.

(1) Lack of Customer Success experience – it is a new and fast changing area, and there just aren’t leaders around with long track records in this world called Customer Success. That’s not to say there aren’t leaders with solid world class experience in customer facing roles but it can make finding the right person more of a challenge and require a wider search. This can be seen especially when we need more strategic thinking and planning.

(2) Customer and business maturity – the vision of what Customer Success means to a business depends on your own organisation and your specific customers. Sure there are guidelines and principles that are consistent, but our own maturity and stage as a business can and does impact what we want from Customer Success and our Customer Success leader on day one or even day 501. We may be in a stage where our Customer Success team are acting as firefighters in a more reactive position than driving new value and outcomes with customers more proactively, and the key is understanding this and where we are now. The maturity of our customers is also important to understand and by this I mean where they are in their own stage of growth, their overall adoption of new technology services and their expectations from our services.

(3) Investment being made into sales not Customer Success – for a lot of businesses, sales (in terms of new business) is still (seen as) the main growth engine and not the existing customer base. As businesses grow and expand and extend their services and offerings this is changing but it requires a shift in mindset for our CEOs and founders. This investment includes our Customer Success leader, our Customer Success managers (with different levels of experience) and potentially other Customer Success roles.

(4) Expectations for industry specific knowledge – this continues to be a growing challenge where organisations are looking through multiple lenses when hiring their Customer Success leader and looking for very specific industry and even technology experience, as well as solid experience in Customer Success and other customer facing roles. Many Customer Success leaders are amazing business generalists, and well skilled in working well in many different industry verticals and with broad (rather than deep) technical skills. 

(5) Short tenures – a number of the challenges above mean that many Customer Success leaders have had to move around in different organisations and whilst this has given a solid benefit of broad experience it can be seen as an issue. I’d always encourage good conversations with my Customer Success leader candidates to understand the drivers behind different positions and moves, and not simply put this as a blocker (which it often is).

(6) Are we a customer centric business? I don’t believe there are organisations who would say that they weren’t all about their customers but without the necessary customer focus and thinking at a strategic level, our Customer Success leader and team will not function and deliver as we need them to.

What makes a great Customer Success leader?

There are three traits that I believe are critical in great Customer Success leaders and strangely enough these are the same three traits I look for in new Customer Success managers joining my teams:

  1. Passion – a level of drive and motivation about your values and Customer Success
  2. Empathy – for customers and their teams and companies
  3. Broad technology and industry experience – broad not deep

Yes these are quite broad but they are at the essence of what Customer Success is. The last one I really like, as I think the breadth of experience in multiple customer facing roles and with different companies and technologies is a differentiator. You need to understand the bigger picture with your customers and where you and your company’s service and/or technology fit in.

A couple of other important things to add are:

  • Experience growing and scaling teams and businesses
  • Customer focus (of course)
  • Being bold – you’ll need to try new ideas and influence change
  • Being agile and not averse to change (or managing change)
  • A like for processes is a must have – you’ll have to define and build new frameworks and ways of working (and these have to keep evolving as your customers do)
  • You are the ultimate voice of the customer – and that can be a lonely place but you need to be there and you need to bring the customer (voice of and feedback) into every meeting
  • When you start, go and meet (all) your customers – hear what they’ve got to say
  • And Customer Success leaders often also take on responsibility for certain key accounts and there is no better way to learn

Does the title matter?

Yes and no. It really depends on the organisation and titles can and do vary. You may be head of Customer Success, director of Customer Success, VP of Customer Success or even the new chief customer officer (which as the newest member of the C-suite I’m happy to report that we’re continuing to see more appointments of this level).

Customer leadership is often the missing piece when companies look to be more customer centric – irrespective of the title, the role is all about increasing customer value and bringing the customer conversation to the board level. You need to be ultimately responsible for your company’s customer relationships.

Are there any differences in Customer Success leadership globally?

On the whole no – you need the same core skills, core traits and type of customer focused experience, and you will be working to and driving a similar vision and approach. There are of course the more subtle (or not) cultural differences and as you grow and expand the teams and regions you work in, you need to be very conscious of these – both for your teams and your customers.

Local language is so important as well – look at Europe as a great of example of this. I’m always a fan of having local language people in the local region to help drive value and better outcomes for my customers.

I always talk about differences with the likes of NPS and this is a good example I think of where you, as a Customer Success leader, need to be aware of potential cultural differences. We all know that only a 9 or 10 rating on an NPS results in it being classed as a promoter. Our US based friends and colleagues might often give 9’s or 10’s as ratings but in the UK – and I hope I’m not generalising – 9 or 10 is better than excellent and very, very rarely happens. That’s like 100% in an exam. A 7 could be a very good score but that only means your passive in the world of NPS. This changes how you might view the scores that you get, and where your true baseline is.

You are the voice of the customer

We all know that our customers are already talking to other customers and future prospects, – I want them to say the right thing!

It’s critical to build and to lead a voice of the customer programme. You, as the Customer Success leader, need to be constantly and consistently listening to and hearing what your customers are saying and then empowering your teams and companies to take actions.

There is a huge ROI in finding out what went wrong (and yes things always do go wrong) and fixing it and letting our customers know we’ve listened and what we’ve done.

Where do I find them?

I’m going to close off this blog post with this final point. We all know that Customer Success as its own separate formal discipline is relatively new and so, by definition, they aren’t many people with many years experience in the actual role itself. But that’s not to say that there aren’t some amazing Customer Success leaders in the industry around the world. Many come from other customer facing roles and even from multiple customer facing roles (and leadership roles). Some great examples include customer support, professional services and consulting, project management, service delivery, account management and sales roles. All of these roles bring some fantastic experience with them – from building and growing customer relationships, delivering value and outcomes, and handling difficult and challenging customer conversations.

Customer operations? Tell me more.

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It’s not that long ago that sales operations was a hot new topic, helping companies utilise their sales data better to drive more efficiency and better results in their sales processes. This expanded to a broader commercial operations function, to include marketing and to help track, process and manage leads, conversion rates, website analytics and more. All great but all only looking at the initial part of your customers’ journey – i.e. before your customers had engaged with you, adopted your services and were getting value from you.

Fast forward to now (or more a couple of years back) and we’re into the world of customer success and the need for businesses to have, as a core part of their corporate DNA, a customer centric way of working. Often this means having a customer success team or a few CSMs (customer success managers) but this is only the start. You need customer focused leadership, the right people, the right systems and the right tools – any one on their own isn’t sufficient.

As part of the right people being in place, a new role to consider is your customer operations analyst or manager (or team – depending on size). This may initially be part of a wider commercial operations team but it brings most value and ROI, when it’s a dedicated part of your customer success team.

Your customer operations team needs a solid but fairly narrow remit and needs to cover:

  • Customer data consistency
  • Customer data analysis
  • Customer success system
  • Customer data integration
  • Customer data reporting
  • Customer journey mapping

The customer success system piece is one where I’ve seen great success, in helping select, implement and manage the platform or platforms and tools that you’re using as part of your customer success programme and plan. And importantly their integration with other tools you’re using in your business, including your own product – for example to bring in product usage and product adoption data, as part of your customer 360 view.

Your customer 360 view should also include:

  • Customer health score information – how likely are they to renew or churn
  • Commercial information – e.g. monthly revenues, renewal dates and payment status
  • Customer risks – e.g. churn risk and overall business risk
  • Real time support data – from your support platform
  • License information – including additional services and products used

All of this comes from your customer data – a potentially untapped source of key business data. Your customer operations functions allows you to access and view all of this data in a customer focused way and shift your customer success management from being reactive to proactive to predictive (using the data to feed into trigger points that you’ve defined as part of your customer journey).

What does your customer operations function look like and do you know what insights there are in your customer data?