“Customer success is an organizational function that helps customers get the maximum value out of a product or service while working closely with sales, marketing, and product to achieve that goal.”
Eva Klein, VP of Customer Success at Hubspot
It’s tempting to think of Customer Success as a soulless rebrand of Customer Service departments. But it isn’t so! While both Success and Service seek to address problems the customer experiences, the latter is reactive and the former proactive. Customer Service responds to problems brought to them; Customer Success brings solutions to the customer before the problem manifests.
It’s a new way of thinking and way of doing things focused on bringing the most value to your customers. How does this help you? Here are [x] ways that Customer Service is a practical necessity for your business.
1. Increase Your Revenue
It may be slightly unintuitive at first, but spending more on customer success upfront will help improve your revenue. A report from HubSpot Research showed that 70% of companies with growing revenue viewed customer success as “Very Important.” The same report also showed that 55% of companies experiencing growth considered investment in customer success “Very Important.”
The link between Customer Success and increased revenue bears out. Customers who feel valued are more likely to be repeat customers, continue their subscription, tell their friends about the amazing service they received, and recommend you to their friends, family, and colleagues. There’s simply no marketing campaign that can match that earned goodwill and word of mouth.
2. Spend Less Money on Acquiring Customers
In addition to gaining revenue, you can limit the amount spent to acquire new customers. Giving your current customers a fantastic experience turns them into walking, talking billboards for your company, increasing the number of customers walking in your door.
In a similar fashion, because the customer feels that you are walking beside them to help achieve their goals, they’ll come to associate your company with success and be more likely to stick with you.
3. Increase Customer Interactions
Because Customer Success is more proactive about reaching current customers, there is necessarily an increase in the number of times they interact with your team. An increase in these interactions is the perfect opportunity for either upselling or cross-selling.
Having the foresight to see future customer problems is necessary for anyone in this role, not only because it provides the opportunity for the customer’s estimation of the business to improve but because they can then explain how premium features or alternate products can help alleviate that problem.
4. Minimize ‘Churn’
Churn is the percentage of business transactions that cease within a given timeframe. Whether it’s canceling a subscription or discontinuing further purchases, churn is the opposite of growth. A business will always have churn, but you can reduce it by focusing your efforts on your customers and alleviating any problems they have. Even if they’re disappointed with the price, your outreach can make it seem worth it.
I’ll leave you with a quote from Jason Lemkin, the managing director of Storm Ventures:
“Customer Success is where 90% of the revenue is.”