Picture this: it’s a busy monday morning and you’ve just run out the door to catch the train. On the way to the station, you suddenly realize that you have forgotten your wallet. Your heart starts beating faster and you feel a knot in your stomach. But then you remember that you’ve been a loyal customer at your favorite coffee shop for months. With a sigh of relief, you pull out your phone and call the owner. She greets you kindly and immediately offers to prepare your usual cappuccino and even take it to the train station so you don’t miss your train. Now that’s service!
In the modern business world, it’s all about customer success. That’s why in this blog, we’ll take a closer look at why this is so important for both businesses and customers. We’ll discover how excellent customer relationships not only drive a company’s growth, but also contribute to positive word-of-mouth, trust, and loyalty.
What exactly is customer success?
The example mentioned earlier is a good example of customer success in action. It’s a company’s ability to understand your needs and provide you with a solution that simplifies your daily routine and puts a smile on your face. Now, you’re probably thinking “but how does this differ from customer experience?”. Customer success focuses on the end result of the customer journey, while customer experience focuses on improving individual touchpoints throughout the customer journey. Programs are often used to minimize customer churn and thus retain customers through customer success. But how do you go about this? And who is actually responsible for it?
Who is responsible for achieving customer success?
This question is there for a reason and is often asked. In short, customer success is not just the responsibility of one department, but rather an obligation of the entire company. There are often specific roles dedicated to managing customer relationships, such as customer service representatives or account managers. Still, it’s important to understand that customer success is the responsibility of every employee, from the CEO all the way up to the receptionist. So it’s both a company-wide philosophy and an individual approach.
The fundamental pillars of customer success
Customer success is all about encouraging your customers to become ambassadors for your product or service. You do this by maximizing opportunities in the preliminary phase of the customer journey. You’re going to do everything you can to retain your ideal customer. Communication is the key to success: by means of adequate information, you make customers aware of your product. Have you reached out to your customers? Then there are four pillars you need to focus on to maximize their lifetime value.
Adoption
Adoption is critical to the success of your entire customer service business. If done right, your customers will use your product in the right way and for a long time. If things go wrong, they won’t see the value of your product and are unlikely to renew. Examples of adoption activities are training and onboarding. These are the easiest ways to give a customer that “aha moment” and familiarize themselves with the product. In addition, you can maintain regular contact to identify potential problems. A successful adoption leads to a higher adoption rate.
Customer retention
The next step is to make sure you retain your customers so that they remain loyal in the long run. However, it’s common for some customers to cancel at some point for a reason that’s beyond your control. Still, you can do everything you can to keep the churn rate as low as possible. Make sure that your product actually adds value and that you can build a relationship with your customers. Therefore, ask for feedback regularly to make this happen. At the end of the day, it’s all about combining effective communication with providing lasting value.
Expansion
In this phase, you have a clear picture of your existing customers, but also your satisfied customers. The Net Promoter Score (NPS) is the ideal way to check satisfaction. Once in this phase, customers are more willing to upgrade their existing products or services. This is a pivotal moment for the company to take advantage of. This can generate up to 25% in extra income. What does such an expansion look like? This includes additional licenses, increased order value for monthly subscriptions, and an upgrade of a product or service.
Advocacy
When a customer has a negative experience with your product or service, chances are they will share it with others. The same applies when they are satisfied with the product: about 77% of customers recommend the company to others after a positive customer experience. And positive word-of-mouth advertising is one of the strongest marketing tools. By taking another look at the NPS, you can assess who your advocates are. Distinguish the customers who give a score of 9 or 10 as ambassadors of your company. Because of their strong position, you can ask them for a reference, to leave a review, or as social proof via social media platforms. You can also set up a loyalty program to further incentivize your customers to spread their satisfaction. But also to reward them for their loyalty.
Customer success is the key to building a successful business. Creating strong customer relationships leads to satisfaction, loyalty, and growth. By listening to your customers, taking a personal approach, and providing excellent customer service, you can significantly improve your customer success.
