Investing in Customer Success Operations Supports Revenue Gains
More companies see customer success initiatives as a growth driver versus just a way to reduce churn, according to findings from Gainsight. About 63% of companies indicated their customer success organizations own Net Revenue Retention (NRR) responsibilities.
“Put another way, companies see customer success as a growth driver,” Kellie Capote, chief customer officer at Gainsight, told CMSWire.
Investment in Customer Success Operations Brings Opportunities
The Gainsight study also found companies investing in customer success operations (CS Ops) have a direct impact on NRR. Companies that reported investing 10% of revenue into CS Ops also reported the highest NRR across company sizes. The ROI of CS is evident and critical to companies focused on growth, according to Capote.
Further, half of the companies reported using basic product analytics metrics to predict churn. “There’s a huge opportunity to evolve from a human-led CS coverage model to a hybrid of human-led and digital-led CS strategies,” Capote said. “Through more sophisticated product analytics tools as well as in-app engagements, companies can more predictably drive expansion and adoption.”
Only 17% of companies leverage CS in expansion opportunities, a huge missed opportunity for conversion, Capote added. “Expansion opportunities are earned through proactive, measured CS strategies,” Capote said. “By incorporating customer success managers in the expansion process, companies can improve their conversion rates and drive revenue.”
Net Promoter Score Still Staple of CX for Many
Net Promoter Score (NPS) is used by 80% of companies to track customer satisfaction. However, only 37% of companies measure NPS for executive buyers or platform administrators, according to the findings.
“Net Promoter Scores remain a staple for measuring customer satisfaction, which has been true for some time,” Capote said. “While NPS will always be important, creating a comprehensive customer health score will be more useful as the responsibilities of CS organizations expand and the opportunities they create growth.”
Product Experience, Customer Success Go ‘Hand-in-Hand’
Capote said Gainsight officials see the data from the study mirror what they hear from the larger customer success community: product experience and customer success must work hand-in-hand to deliver value to customers and increase NRR.
The use of more advanced technologies, such as increased product analytics and in-app interactions, in conjunction with evaluations of the business value gained, presents an enormous potential for firms to improve retention while simultaneously increasing adoption and growth, she added.
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Hakan Ozturk is a Paris-based Customer Success leader with over 15 years of experience in the computer software industry. Passionate about driving growth and delivering value to strategic customers, Hakan has established himself as a trusted industry expert. As the Founder of The Customer Success Café Newsletter and TopCSjobs.com, Hakan provides valuable industry insights and daily-updated job opportunities worldwide in the field of Customer Success. Connect with Hakan to unlock your company’s potential for success.