What is Customer Success? And why should it matter to sales managers? Well, 71% of global B2B customers are actively disengaged, based on Gallup's research of 18 million customers, which means it's possible you have unhappy customers. Our customer success guide explains the history of customer success, its definition, and why it matters.
The Customer Success Guide, Sales Teams, And Technology
Before we dive into our guide to customer success, let's talk about the seismic shift in technological advancements that has occurred in the past 25 years. Once it became very real that organizations could implement systems to manage processes and define their success, the battle for big data was on. In sales, big data has transformed how customers are acquired, managed, and retained. The higher performing sales teams have 3x more sales technology at their disposal than underperforming teams.
The focus has shifted everywhere from prospecting tools to predictive analytics technology and customer relationship management (CRM) platforms. But the real change has come from businesses becoming more customer-centric. It's no secret by now that 80% of revenue is derived from 20% of your customers. Hence, why high-performing sales teams are 4.5x more likely to have a 360-degree view of their customers than underperformers.
The History Of Customer Success On Google
In late 2013, Google started to see a rising trend with search teams involving "customer success" and "customer success manager." The need to consume more information about customer success was evident. The need to hire individuals with a background in customer success was also apparent.
If you checkout LinkedIn and search for customer success manager jobs, you'll find over 200 positions have been posted within the last 2-7 days. Adding more fuel to the fire that customer success is real and vital to driving successful business goals.
What Is Customer Success?
Customer success is the next level evolutionary stage of account management or customer relationship management. It is now more intertwined to your business goals than ever before. Customer success is about ensuring customers reach their desired end goals successfully while using your products. And guess what? Gallup learned that 60% of B2B customers thought their problems were not resolved. Meaning customer success exists to eliminate problems before they even happen.
The focus is on customers and driving them towards success. By educating salespeople on what their customer experience and lifecycle look like. You're enabling them to make informed decisions about their customer relationships. The idea is to keep customers happy and problem free so that they never find a reason to leave you.
Why Does Customer Success Matter To Your Success?
Without a customer-centric business model, companies run the risk of losing their customers and being replaced by their competitors. With it, employees can achieve greater results with their clients. Gallup reported that b2b customers with high customer engagement generate 50% higher sales and 55% higher share of wallet. Remember, clients no longer stick around for life. Revenue is easy to lose.
The days of lifelong clients is over. Clients ask themselves much sooner than later, "Do I need to be paying for this?" And with contracts frequently expiring, sales team have to be in the best possible position to renew their contracts. Customer success gives salespeople or account managers the power to engage in fruitful renewal conversations.
Customer churn is a problem every business faces. If you lose more customers than you add every year, it won't take long for your business to fail. With customer success measures in place, your people will be a position to create value through data-driven insights. After all, success is what drives customer revenue.
Customer success stops money from going out the door. It also creates more revenue from clients, which are your biggest spenders.