Do you know the book "Customer Success: How Innovative Companies Are Reducing Churn and Growing Recurring Revenue (2016)"?
One of our colleagues took a read and wanted to share a few thoughts about what was learned. Overall, the book breaks down the concept of customer success and explains the ten principles of ensuring your customers are successful. Here are a few points.
In simple terms the customer success strategy is the creation of loyalty, in particular the creation of emotional loyalty. Emotional loyalty is different from logical loyalty (or active loyalty), because it is not just about how that brand’s product fits the customer’s needs, but about how much the customer is attached to that brand. You first need to create this attachment to your company’s brand. Then by strengthening this loyalty through ensuring customers who use your product succeed, they will continue to use your product. This continued use creates profit. This is a rough outline of the customer success strategy.
The rise of subscription services is because of one reason. Increasing the number of customers who subscribe and decreasing those who end their subscriptions is the easiest way to create profit. In order to retain the customers using your subscription service, you must put their success at the forefront of your service. Famous companies, such as Komatsu and Ricoh, are amongst the first of B2B companies to have started subscription services successfully.
In the beginning of the book the authors say in order to be successful you must understand your No. 1 customer. This customer isn’t someone who bought your company’s product, but a user, who through your product succeeded.
Why should we see the customer this way? Subscription services are not about making a onetime transaction for a single price. The customer subscribes to your product for a recurring subscription fee. For this reason, your No. 1 customer is the customer who has been using your product for a long time.
By analyzing the data given to you by this customer’s issues and expected profits, you can actively solve the issues your customers are having. Through this you can ensure they are successful.
On November 29th, 2018 Bigbeat Inc. held an event about customer success and marketing.
The event titled “Customer Success x Marketing” focused on:
Better understanding customer success
Actual examples of customer success
How can customer success affect your business?
Thank you to those who participated in “Customer Success x Marketing”!
You can find the column about this event here.