Do you know why SaaS vendors fail most often? No, it’s not a lack of sales. No, it’s not from a poor product. And no, it’s not from a lack of quality in the product. Failure stems from a disconnect between the customer and the product’s value. It also comes from poor integration throughout the company. Here is where customer success management (CSM) comes in.
Nowadays, SaaS companies have identified customer success management as a critical factor to spark rapid growth for their company. However, many CSM programs come with a lot of grey area, as SaaS teams only understand the end goal is for ‘successful customers.’ They don’t understand the path to get their customers there. Which is why having a plan in place is so crucial to the success of your customers and company.
An External Focus is Key
Many companies have conversations about how the CSM can be successful. From discussing KPIs for the team to leadership issues, these internal discussions are important but leave out a critical aspect of the business’s success – the customers! Instead of quarreling over who will do what and how the team will be managed, shift to a customer-centric focus. What exactly will make your customers successful?Renewals are a great source of revenue. However, they only stem from happy and successful customers. Discover how @kilterly can help you boost renewals with #CustomerSuccess: Click To Tweet
Purchase vs Renewal
Purchases and renewals sprout from different soils.
A prospect will buy your product based on their expectations of your product. Through demos, promotions, advertisements, referrals, and other marketing tactics, a customer will buy your product based on reputation and perception.
Renewals are another story. Since purchases are based on expectations of the customer, renewals build on meeting and exceeding those expectations. If your product can meet their standards, they will be content and happy. Happier customers are more likely to renew their contracts because they enjoy what they’re getting in return.
Getting from Point A to Point B
Clear communication can help your CSM team eliminate any ambiguity and confusion along the way. Start by asking your customer what their goals are when they are implementing their new software. Often, you will get a blanket statement of ‘getting our new software up and running within our budget’. This answer is completely normal and reasonable. But you need to push further as your success depends on their success.
Ask them what success looks like a couple of years to a decade down the road. Their answer will change drastically. Now instead of a simple answer, they can say their workforce is 100% on board with the software, their sales are up, customer retention or an equally important metric (depending on the SaaS you are selling) has increased.
A major threat to SaaS companies is the chance of the software being ignored by the customer and their workforce. So, it’s now on the shoulders of the customer success team to ensure everyone gets on board. Your team needs to be proactive and prepared. You have to help them along the path from A to B. While the issues standing in your way may not be directly related to you, it’s still your problem.#CustomerSuccess is the link between purchase and renewals. See how @kilterly is helping SaaS companies succeed with successful customers! Click To Tweet
You’re probably thinking, ‘how can I move them along the path?’ Implementing a system customer success management software can help. Kilterly can be your saving grace. Kilterly is designed to provide a stellar customer experience through actionable insights and data analysis.
One of the biggest problems for companies is locating pain points. That issue is eliminated with Kilterly. The Churn Dashboard provides various insights based on the activity of your customers. By using platforms like Kilterly, you’ll be able to monitor and strategize action plans for customers.
The success of your customers has a direct impact on the success of your company and the renewals it needs. Ensuring your company takes on the responsibility of their success is crucial. Companies, like Kilterly, are designed to help you create a successful customer-base full of renewals and upsells. Want to learn more about Kilterly? Get a live demo! Want to learn more about customer success? We can provide the insights you need!