A Saas business which has already evolved itself to bring in a Customer Success Software integrating it with Subscription Management, Support, CRM and product usage data knows exactly- “What is the secret to Saas growth”
Now that involves two main essential activities- Retaining Customers and Upsell to consumers.
Subscription Economy is rewarding for those who Retain and Upsell to their customers.
Let me tell you why this is so much important. So when we look at the post-sales journey we see that 80-90% of the overall LTV revenue comes from the retention cycle that incorporates
Onboard> Success > Support >Upsell, Referral, Renewal
“95-80% LTV* is Recurring Revenue BUT Businesses don’t know who will Renew, Buy-more or is At-Risk until it’s too LATE !!
Well for that, it’s never too late to start.
From achieving 130 % MRR Retention to reducing up to 50% Logo Churn and to attain a 2X-5X Account: CSM Ratio, SaaS businesses need to have Customer Success. The whole idea to attain these objectives arranges for Innovations in CustomerSuccess Technology.
INNOVATION 1: Health 360
Existing Health score generating platform VS Health 360
Earlier the Customer Success platform gave single average account health considering only Product Adoptions that takes into account the number of active days of the user, the adoption of your core features, and active license utilization. But since Product adoption is
not the only factor. As in a supreme scenario, a Customer Retention Platform should contemplate other important factors to Health Score like- The overall financial health of the customer, Service to the number of support tickets raised, frequency of support raised, etc, along with Product adoption and Customer Relationship.
Health 360 is one such innovation that provides insight on each and every factor that decides the complete health of the accounts which, in contrast to other platforms, furnish only a single average health score that could mislead you.
Remember Averages lead to False Positives.
So this innovation will solve the purpose of your questions like :
- Who is getting value?
- What’s my relationship level with my customer?
- Is the MRR for a customer account growing or declining?
- Is the Product being adopted?
- How satisfied is my customer with my support service?
INNOVATION 2: Customer Success Platforms for Remote Success Teams
Let’s examine the entire process of Customer Success delivery back to a decade, where we had Success Managers on the field doing high flyers, wine and dine, playing golf requiring high cost per customer, and stand in need from them to always be on the field. But today with new innovations in CS Platforms Success, Managers can now remotely manage 50-200 with comparatively low cost per customer and working from the inside the office most of the time.
The two contrasting scenarios depict how Customer Success has evolved from Field Success Managers to Remote/Inside Success Managers.
INNOVATION 3: Actionability
Gaining insights on data is important but it will not solve the problem until that required action is taken. Actionability is one such important feature that you should look for in any Customer Success Software. Where you can communicate, manage hundreds of accounts, locate the history of accounts, go back in time. That’s it and boom you see health scores changing by a single action. And that’s why you need an actionable platform. Where you can set up tasks /interventions for your Customer Success team so they know when they need to act, rather than software that provides all the analytics and expects your Customer Success Manager to dig into the data and find the interventions themselves.
Playbooks are one such innovation that drives real Product Adoption.
INNOVATION 4: Automate Customer Success
A lot of SaaS businesses readily face these problems –
- How can I put customers on a self-boarding path ?
- How can I follow up when their product usage dips automatically?
- How can I Automatically offer a plan upgrade when they hit the limits the of base plan?
- How can I automatically send a payment reminder when their invoice is about to be due?
For all these problems, the solution offered today in the industry involves setting up email campaigns borrowed from marketing, providing 100% Tech touch for long-tail, and automating every task. But hey, that does not really work. Automation has less than 5% success rates. So to address this issue, the new innovation is integrated Automation with Human Intervention so that when Automated communication is not getting the desired results a hybrid approach is adapted to do the task with Human intervention to provide the right value to your customers.
The Hybrid approach- Human Intervention Tasks (HIT) for CSM << Automatically.
INNOVATION 4: AI-Powered Customer Success
In a new field where experienced CSM are hard to find. How can Customer Success Technology come to help?
With the AI -Powered Customer Success, CSMs will be able to scan thousands of data points, past user behavior, CSM’s activities, and engagement with customers to learn what actions and behavior lead to retention.
This will impart smart recommendations, and come up with the next best action for CSM to unlock LTV for every account that is otherwise at Risk.
INNOVATION 5: Integration
A good Customer Retention Software should be able to integrate most of the other software and tools with a click and should not require your engineering team to intervene. It should be able to integrate with your CRM, Support services, billing, your NPS software, Project management tools, Analytics tool, Calendar, and even SLACK or Gmail. As most of the Customer Retention software requires you to deploy your entire engineering team, then the integration is poor. So make sure your customer retention platform has all these features.
The Way ahead
The customer success approach you outline today will determine how your customers will interact with the brand down the line. In today’s highly competitive world, innovations in customer success is no longer a matter of choice rather have become a necessity to meet future challenges.
To know more about a customer success platform that encompasses all these innovations, book a demo here.