What is a Customer Success Strategy?
A customer success strategy is a plan that businesses use to ensure that their customers achieve their desired outcomes while using the company’s product or service. It involves understanding customers’ needs and goals, providing them with the necessary resources and support, and measuring their success and satisfaction. The purpose of a customer success strategy is to help customers achieve success with the product or service. Doing so leads to higher customer satisfaction, repeat business, and positive word-of-mouth referrals.
Customer Success vs. Customer Service
Many people confuse customer success with customer service, which is understandable. Both customer success and customer service are essential legs of sales enablement and customer retention. Although customer success and customer service are two different approaches to interacting with customers, they are often used in conjunction with each other. The difference between the two can be subtle, but it is an important distinction to make.
Customer service is a reactive approach that focuses on providing customer support and assistance with questions or issues with the product or service. It is typically delivered through a customer support team or helpdesk and may include services such as troubleshooting, technical support, and issue resolution. On the other hand, customer success is a proactive approach that focuses on helping customers reach their objectives when using a product or service. An effective customer success strategy involves continuous engagement with customers to ensure they achieve their goals and are satisfied with the product or service.
Benefits of a Customer Success Strategy
Higher Customer Retention Rates:
An effective customer success strategy helps businesses retain customers by ensuring they get the most out of a business’s product or service. When customers successfully meet their desired outcomes with a product, they will continue to use it. In this way, customer satisfaction resulting from a customer success strategy will directly reduce customer churn. Reducing customer turnover is critically important for subscription-based companies because they need to retain customers to remain profitable. However, any business will benefit from increased customer retention rates as it will also result in increased revenue and a more dominant market share.
Improved Brand Reputation:
Customer success strategies can improve a brand’s reputation by building trust between the company and the customer. Building trust with your target audience is one of the most effective ways of enhancing the public’s perception of your company. When a customer is happy with a product or service and knows they can trust the brand behind it, they are more likely to share it with friends and family. These word-of-mouth referrals are more than just another opportunity to grow your customer base. They are also evidence of your customer success strategy’s value to the brand.
Gain Valuable Insights:
Arguably, the most impactful benefit a customer success strategy will bring to the table is a deep understanding of your customers. The feedback you gather from customers can help your business improve in many areas. Listening to your current customers can improve a brand’s products, communication style, and branding. These are insights that might be difficult to quantify but are indispensable in growing your brand.
Customer Success Tactics
To develop a customer success strategy, businesses must first understand their customers’ goals and objectives. This requires engaging with them and gathering feedback on how they use the product or service. Surveys are the most popular method of receiving customer feedback because of how easy they are to disseminate and how quickly customers can fill them out. According to studies, surveys that include an incentive, such as a discount code, are roughly 30% more likely to get a response.
Surveys are an effective method for collecting feedback, but the insights you find from them can be surface-level. For more in-depth insights into customer behavior and perspectives, interviews are preferred. You can ask your customers questions with interviews, just as a survey would. But interviews also allow for follow-up questions and open-ended discussions with customers. This provides a deeper understanding of the customers’ needs and expectations.
When it comes to customer success, communication is key. Reaching out to your customers regularly with updates and meaningful tips will help them find more success with your product or service. Providing customers with the necessary resources and support to achieve their desired outcomes is crucial. This may involve providing training, documentation, or access to a dedicated customer success team. Consider starting a weekly email where customers can find notes on updates, links to valuable resources, and anything else they find helpful.
Partner with a Consultant:
Partnering with a consultant can be a valuable way to improve a customer success strategy. A trustworthy consultant brings external expertise and fresh perspectives to the business. This allows them to provide insights and recommendations that may not be readily apparent to those within the company. Additionally, a consultant can work with the business to develop customized solutions that are tailored to the specific needs of the business and its customers. This can involve developing new processes, resources, and tools that align with the company’s goals and objectives. Contact SkillSource Learning Partners today to learn how our consultants can help your business develop and maintain a successful customer success strategy and improve your customer engagement.