What You Need to Know About Customer Success
Updated: Mar 19, 2020
The following is an article “What You Need to Know About Customer Success” by Marc Primo.
Companies can determine customer success by measuring consumer feedback in terms of support and satisfaction. From email responses garnered for product demo bookings to tickets closed by customer service agents, you’d know you’re doing well if your product is reflecting high numbers in those metrics. But what if these customer success gauges are already outdated and are not enough to determine customer loyalty anymore? What if these old rules are no longer cost-effective? With the emergence of digital marketing comes modern techniques that can help you measure real customer success.
Nurturing customer relationships has certainly edged cold calling and closing deals over the phone. Along with this are new metrics which you should focus on right now so you can truly measure customer success.
Satisfaction. There are three things you should note when it comes to customer satisfaction: feedback about your brand and product, customer support service, and overall experience. Psychographics is an important metric in today’s digital marketing landscape and knowing how your customers feel about everything that concerns your product and how you build your relationships with them sets you up for customer success. You can measure customer experience, loyalty, and satisfaction using the Net Promoter Score (NPS), a survey-type feedback form that churns out significant data by simply asking your customers if your brand or product is worth recommending to others. This way, you can also collect data about the way they think, their purchasing habits and their needs so you can effect necessary changes and improvements.
Feedback. Most consumers today prefer experiential marketing and that can turn out more valuable feedback that can help you solve outlying results. Allowing your customers to have a voice in how your brand or product should be perceived in the market can build stronger relationships. By simply sending them survey forms about what they think of your brand and product, their experiences with customer support, and even what aspects they are not happy with, you’ll get a front row seat to your customers’ general perception not only of your product but of your company as a whole, and let you address their concerns more effectively.
Lifetime value. Another essential metric to focus on when measuring customer success is customer lifetime value (CLV) or the expected total revenue you can get from a single customer. The concept requires you to determine a potential long-term customer’s revenue, frequency of product purchase, and life expectancy to come up with useful numbers. While this may seem quite intrusive, this marketing strategy can do more for your customers and their whole experience of your brand and product. After all, building relationships means getting to know each other and being transparent about needs and expectations. CLV tells you how your product contributes to your customers’ lifestyles while also allowing you to adjust according to their own expected values for better satisfaction.
Retention cost. Customer retention cost (CRC) lets you know how much you are spending for your customer success programs. This includes calculating the total payroll of your customer support team, costs in engagement and lead generation, professional services and team trainings, and marketing efforts. All of these can give you a good idea on the efficiency of your customer success programs and where to invest your budget in. By crossing product revenue with customer retention costs, you can project just how much you can make in the future or if you have some more money to spare for new product or customer support features.
As metrics for customer success have evolved through time, building good relationships with your customers and placing their trust, loyalty and satisfaction as a priority should be a constant as it can certainly help your business grow and weather whatever changes may come in the future.