It’s undeniable that the SaaS model works differently and attracts revenue on a monthly or annual basis, unlike the on-premise software that deals with one-time payments. So, it’s legit to have a customer success team in hand.
But with effective customer success, it’s possible to attain those extra gains from the SaaS revenue model. If your efforts are going down the hill, know what better can you do to pull yourself from the clutter and unleash success with the revenue your brand deserves. Didn’t this get you curious already?
Stay tuned and read on to incur extra SaaS revenue. Also, hear this view directly from Puneet Kataria – The CEO of CustomerSuccessBox through a podcast from “SaaS-Story in the Making” hosted by Matt Wolach in his episode, “How to Gain Extra SaaS Revenue with Effective Customer Success.” Click here 👇 to listen to the full podcast!
Assess the quality of the customer success efforts
Regardless of the number of metrics, it is always important to assess the quality of the efforts. Be that you use just one metric or are in the process of identifying many. The golden metric to look at is Net Dollar Retention.
The ultimatum is to have it 125% and above! So when you are starting, if it is at 85%, don’t expect an unrealistic result of 125% over the night. It is a journey and dwells in the process to achieve it in milestones. The next target should be 90% and going on!
You know in a business churns don’t leave you behind? That is important to track. The churn is taken care of when the onboarding success is on track. It is crucial at this point that you find all the data-driven ways.
At the onboarding stage, there is a need to deliver value. You’ve to look at the data and then see the narrow view. So this must be backed by a leading indicator that tells you the value if delivered or not.
The main dedication must be to delivering value with a leading indicator. If the value is not delivered, it’s time for you to be proactive.
Lay a top-notch customer success journey!
You know that your business deals with the subscription economy right? So in that case customers are at the center of your organization. Start hiring customer success leaders, customer success managers put them to track customer’s journeys.
This should come out with data-driven insights, not opinionated insights. So be in check with the datasheet to know how engaged your customers are with your product.
The benchmark of Net Retention Rate.
The key is not just to retain the same dollars every month or year. Your product is worth paying more than the initial value. So better the value is delivered. Customers like to engage with your products more, so make upsells and expansions.
So as per the benchmark, only 125% of Net Retention has been able to crack by the 10% of companies and that is your golden benchmark ultimately.
How will net dollar retention grow?
What’s inevitable is churn, either it is out of our league or hard to handle. The revenue lost due to churn shouldn’t be a letdown; rather the catch is to gain more than that by expansion and upsells.
And the way to do it is to see how you are treating your customers. They are linked with your firm because you promised them of delivering value to the use cases they expect. They are here as long as you are delivering it to them and gone the moment you don’t deliver value.
Know the fact that they landed you because your marketing team was shouting about the value they can deliver and the sales team was committing to it. So, don’t lose the track of delivering value which eventually increases the Net Dollar Retention!
There is a need for customer success and not customer support!
Customers are treated proactively before they even hesitate to reach out to you when the management is under customer success but it isn’t the same with customer support.
The point here is not just to be reactive as they react after receiving the responses when it is about customer support. But although both are equally necessary for the organization what’s better is being proactive.
The reasoning for this is customer support is more silent as if there are no issues, the tickets have to be responded to, they take care of the concerns and they have to be in a place where they understand customers and the challenges they are facing to get it resolved.
Whereas the customer success is noisy and isn’t confirmed if the customers are using your product unless there is a tool, they need to ensure the renewal is more than 100%, that they are driving growth and ultimately reach out being proactive, deliver them of the value they can take from the product and remind them of the deal they made.
In the end!
Remember you are delivering value throughout their subscription because as long as you do it, they are staying with you forever. So if you are still at reactive support, start paying attention to a proactive approach if you want your customers to get what they need from your product. Otherwise relying just on a reactive approach is no way leading you to satisfy customers and more often results in churn due to no information.
There is no way to fight to make it zero but rather can be avoided if your onboarding is set right in delivering value to them!
Do you think this journey is easier? It’s going to be a long way. As for how important it is to have a customer success team to ensure your customers are taken care of, it is important to have the right customer success tool that allows them to stay proactive with their responsibilities.
Want a customer success tool for your team? Check Customersuccessbox for your needs of keeping customers satisfied at all the aspects of their journey!