C-levels have dreams of recurring revenue. Like visions of sugar plums dancing in their heads, they see delighted customers who are thrilled with their products and services, deliriously happy to keep throwing money at them month after month, year after year.
But pioneering leaders in subscription-based companies have a different point of view. A view that at any minute, many of their customers might up and leave them for the next shiny object that flies by. They are the ones leading the charge into the new movement called “Customer Success Management.”
Customer Success Management (CSM) was born out of the realization that the Cloud and month-to-month subscription agreements made switching costs lower than ever. The competition is just a click away. Next month’s and next year’s revenue is dependent on this month’s customer satisfaction. And that satisfaction isn’t just warm and fuzzy sentiment about the company. It’s a monthly or quarterly assessment and recalibration of value for money.
The foundation of CSM is helping customers maximize their value from a purchase. The ROI needs to start soon and continue on a strong upward slope. In many cases, the total value doesn’t just jump off the screen or happen automatically. It requires a bit of effort and knowledge, some guidance and a bit of coaxing. That’s where the skills of a Customer Success Manager come in.
Customer-centric companies invest in CSM. They don’t leave a customer’s value to chance. They nurture it to its full potential. And don’t think for a minute that this is only relevant for subscription-based companies. All companies think about customer retention, future purchases, and the full lifetime value (LTV) of their customers. But more than think about it and dream about it, they need to invest in Customer Success Management, including the people, processes, data, and systems to enable CSMs to do their job well and at scale.
An investment in CSM can turn your recurring revenue dreams into reality. It’s not easy money. It’s money well earned.