Have you met a Director of Customer Success yet? Wait, Salesforce.com, SAP, Marketo, and IBM have them. Why don’t we all? More than ever, leading companies are realizing that the sales hurdle doesn’t mean a whole lot if their new customers don’t actually use their new product. That’s why the most progressive companies are spending significant resources aligning their profitability with customer success. If a company loses an existing customer, it costs on average 4-6 times more to capture a new one. How can we make sure customers are successful and happy?
Capturing New Customers vs Retention?
The problem is, retention is hard. It’s easy to sell something beautiful, new, and shiny. Unfortunately, it’s harder to make sure that new (and oftentimes complex) toy is actually going to be used. I bet most of us received an erector set for Christmas one year?
I was so entranced by the pretty pictures, the finished machines, and the potential of it all! Then… I was engulfed in disappointment. How many of us actually accomplished anything with it? (If you did, send me a picture, I need proof) How many of you, who did absolutely nothing with that box of bolts, will actually recommend it to your friends. Or, better yet, buy it for your kids? Yes, this is an oversimplified projected generalization of extremes. But, marketing technology is much of the same. Many customers buy – thinking the bells and whistles will make beautiful music right out of the package. But, we are immediately disenchanted once the complexities are revealed.
“It’s too hard. It’s sad. This isn’t what I expected. It’s the vendor’s fault. The sales team are liars.”
NO! Avoid this common customer sentiment!
Don’t leave your customers out to dry. Care for them. Make sure your customers are empowered, enabled, and supported to succeed. Make sure your customers overcome the natural frustration of NEW and turn into power users of ADVOCACY.
What Drives Profitability?
A 5% increase in customer retention can increase a company’s profitability by 75%.
That’s a lot of money to leave sitting on the table if an organization isn’t caring for its customers. That’s why leading firms are devoting as much energy to customer success as they are to sales. Because —-happy customers = customer advocates, which = more sales. It’s Mrs. Johnson level 5th grade math. And, it’s time we all imagine ourselves on our first marketing technology date – and recall how much we wish we had a little help. When that help shows up, and we succeed, and we’re celebrated for our accomplishments, we turn from scared customers into true believers.
As a marketer, your ultimate goal is to foster belief. Effective sales starts with belief in your product. Hot blazing growth begins with your customers believing in your product. Support them, ensure their success, and your success will happen.