Increasing customer retention rates by 5% increases profits by 25% to 95% (Bain & Company)!
Yet, budgets are tight, and COVID-19 hasn't helped, so it can be hard for Customer Success to be taken into account since it doesn't necessarily bring about an immediate ROI.
We wanted to share with you 5 Top CS trends and challenges we've identified for the following months.
Customer Success has actually turned out to be one of the most valuable assets of SaaS companies:
Facing this upward trend, companies will have to enhance their CS strategy, making it an issue that concerns all departments (product, support, marketing teams, etc.) – not only the customer service.
So it has become clear that a culture of growth-oriented Customer Success has been emerging, aiming at providing the best customer retention and loyalty, so that companies can generate better ROI.
Data have been used to drive business decisions since the early 2000s, but now that companies are becoming aware that Customer Success is unavoidable to drive growth and revenue, they're starting to focus even more on centralizing their data, while diversifying and scaling their data sources.
Since data are about deeply understanding the customers and their behavior and needs, data sources are bound to be both:
In other words, CS teams are going to gather increasingly more data to try and build an accurate portrait of their customers. They'll therefore be able to build better Customer Experience and Relations in order to reach higher revenue.
In addition to an increasing gathering and use of data, machine learning and AI are going to be at the center of all CS strategies to help them analyze it. CS is indeed a truly complex field, that's why basing it more and more on algorithms will become inevitable: it will make CSMs' work easier, and they'll get therefore more efficient and more accurate.
The purchase of the product does no longer sign the end of the customer journey: it's the beginning of an opportunity for companies to pay attention to customers' behavior and to take into account their feedback in order to enhance their overall experience.
That's why it's going to become crucial to select key data and interpret them efficiently.
This is where the absolute necessity of having a health score to interpret data comes into play: it will be a key indicator of whether the solutions provided to customers are consistent with their needs or not. And understanding clearly how they value the product will allow businesses to adapt over time.
While dealing with individual tickets or complaint emails – which customer support does – is about resolving product-related issues, health scores are about understanding how your customers value your product: they take other metrics into account (website use, email opening, etc.) and give you a broader vision.
Today, to thrive in the long term, you have to follow up with your customers continuously, which you cannot do without keeping and maintaining a quality health score. In so doing, you'll boost your customer retention.
Even though a company needs and will keep needing a well-functioning Customer Support service in the future, merely providing products and support isn't enough anymore.
Firms will have to complete it by adopting a much more proactive approach to customer relations: having a proactive Customer Success strategy will allow them to develop a sustainable model based on identifying growth opportunities and issues before they even appear.
More proof that proactivity can concretely benefit your company
So how can you keep up with this trend and adopt a proactive CS strategy? Start by asking yourself the following questions before each action you undertake:
So once again, companies that don't adopt a proactive approach will find themselves strongly disadvantaged, hence the increasing necessity of having both reactive Customer Support and proactive Customer Success to offer a complete customer experience.
A CS leader has no time to communicate manually with each of their accounts. Yet, a fully automated, non-personalized approach cannot be an option.
That's why it's becoming essential for companies to choose a well thought-out balance between automations and human interactions (be they per email, phone call, or direct message on social platforms), not to mention that most customers are now online (a trend that COVID-19 has consolidated).
This major challenge can be decomposed in two parts.
In the end, automation will come as an inevitable tool that completes the traditional high-touch way of dealing with customers, making CSMs' work much easier since it allows them to select the customers they most need to have human interactions with, while maintaining automated, yet personalized relations with the others: they'll gain therefore both time, and efficiency.