Customer Success Glossary

Recurring revenue forecast is the prediction of the recurring revenue that the company would be making .

Software as a service is the new software licensing or distribution model where companies do not have to install the software or tool on their own systems. The software is usually installed on one central server by the provider and based on the plans subscribed by their customers, access levels are granted.

LifeTime Value often termed as LTV or Customer Lifetime Value (CLV or CLTV) is the total revenue spent (or expected to be spent) by the customer in a business relationship. In subscription economy, the initial deal value is lesser as compared to traditional businesses.

Whenever we read a book or watch a movie which has a compelling story, we develop an emotional connect with the characters. We’re so excited to share the story with our friends, peers, and family. That’s exactly what happens in the business world.

We have heard about pre-sales journey to convert a visitor into customer, but what’s next? How do we ensure to deliver the same value post sales? How do we set the customer for success, and make him customer forever?

Customer Success is a best-kept secret for growth in the SaaS economy. With the change in business model, the focus has shifted from one-time revenue to recurring revenue.The power has shifted to the customer since he has multiple choices to invest. Hence, focusing on customer acquisition and conversion without giving thought to customer retention isn’t healthy approach.

In subscription economy, there has been lot of excitement about acquiring the customers, reducing churn and growing recurring revenue.

Each business wants to deliver top notch Customer Experience to build a long lasting business relationship. Be it B2C or B2B, keeping post sales relationship is ever challenging task. With the change in the business economy and multiple options, customers expect the constant value to be successful with the brand.

In today’s competitive world wherein customers have multiple choices, how to make a customer fall in love with your brand? Despite great product, why do customers still churn? How to delight a customer and win his loyalty?

We have usually heard about Business Growth but ever focused on Customer Growth? Businesses want to increase revenue and focus on new bookings. All of us celebrate the success of adding new customers. But do we know if those customers grow as the business grows?

We have heard a lot about Customer Service, Customer Support, Customer Success. A sum total of all the interactions a customer goes through (proactive/reactive) forms the Customer Experience

Engagement starts from the moment we get a visitor on our website. At each step, the Marketing and Sales teams engage the prospect to nurture the lead. In fact, the prospect is taken through a beautiful sales journey until he becomes a paid customer.

New business is often seen as the major source of revenue in any business. However, it’s a fact that acquiring new customers is a lot more expensive than retaining and growing the existing ones. Read More

Customer training is an essential part of customer lifecycle. Customers prefer step wise guidance to ensure they achieve maximum value out of product/service in no time. Customer training is all about facilitating the product adoption, and enabling the customers to achieve Desired Outcome using the product.

In traditional form of businesses, the perpetual/ownership model was popular. Businesses earned profit through one time payment which was significantly high. There wasn’t any focus to deliver the value post sales.

Despite adding hundreds of new customers, delivering top notch product, 24*7 customer support, does the revenue scale? Are customers really using the product post sales?

Recurring revenue is the key driver in subscription economy. Retaining the existing customers is as important as adding new customers. With the change in business model from ownership to subscription, the buying trends have changed

The status of a customer determines his business relationship with the brand. Customer status could be active or inactive depending upon his subscription status

Customer Success Metrics are used to measure the success of Customer Success Strategy. In SaaS economy, business growth is directly linked to customer’s success.

In SaaS economy, the success of a business is dependent on how successful your customers are. A customer is successful once he achieves the Desired Outcome through top-notch customer experience.

Product Usage gives you an insight on how successful your customers are with your product/service. The conversion rate is significantly high if the product is easy to use, and offers quick time-to-value upon sign up. Product adoption is a strong indicator of customer retention.

Stickiness is an approach or state to make the customers stick with your brand. This is done to ensure that customers continue to use the product and service in long term.

Account Expansion refers to generating revenue through existing customers/accounts. Growing the existing customer base is relatively easy and cost effective than acquiring new customers.

We keep talking about acquiring the customer, new bookings, revenue growth. But what about the existing customers? How do we ensure that they grow and succeed with us?

The Desired Outcome is the end goal/business objective customer wants to achieve using the product/service. There could be multiple ways to hit the goal, however, customers prefer the best experience.

With the rise of SaaS subscription, Customer Success has come a long way. The businesses have shifted focus from reactive support to proactive customer success. The end goal is to make customers successful in achieving the Desired Outcome, but the real question is how?

Account Contraction refers to the loss of revenue in existing customer accounts.