In companies the figure of the customer success manager is spreading rapidly, whose task is to improve the customer experience and intercept their needs. In this article I explain to you what customer success is and how to make the most of it, but first of all it is appropriate to make a current assessment of the period we are living in.
The pandemic has accelerated the digitisation of services, transferring a large part of the market to the web. Undoubtedly this represented an advantage for those who already operated online, but it also brought with it greater competition. So what happened? That the markets to be shared have considerably contracted and competition has become ruthless.
In addition there is the evolution of the average customer to consider, much more attentive and informed about market offers. Those who browse the web know that they can find everything, so they carry out a long search before proceeding to the purchase. It is from this perspective that the shopping experience fits in, which must provide for the customer’s needs from A to Z.
An excellent marketing team and an excellent sales team certainly represent a good start to capturing customers and increasing sales, but they are not sufficient. To optimise one’s marketing strategies, which keep in mind all the aspects of the new online market, the figure of the customer success manager was born. We at We Are Fiber have this and other indispensable figures in our staff, such as the digital customer care specialist, in order to provide customers with a unique experience aimed at building their loyalty.
More and more companies request specialised figures in outsourcing from us and the results prove us right. Our clients have in fact observed a cut in costs and a customer satisfaction equal to 99%.
What is customer success?
The literal translation of customer success is “success of the customer”, since their happiness is the objective pursued by companies. In more detail, this term refers to that business methodology that allows the customer to reach their objectives through the use of a product or a service.
A close relationship is created between seller and customer, who is no longer a passive part, but an active one throughout the sales process. In this way a “win-win” relationship is born, in which both actors in play draw benefits from it. The advantages obtained are:
- customer loyalty;
- a drop in the churn rate for the company;
- an increase in sales;
- the possibility for the customer to provide indications in order to receive a personalised product or service.
How to calculate customer success?
Revenues represent an important indicator for assessing whether the customer success strategies adopted are bringing the hoped-for results. On their own, however, they are not enough and, in this regard, you have to consider 5 fundamental KPIs to start from:
- churn rate;
- net promoter score;
- customer satisfaction score;
- customer lifetime value;
- net easy score.
Churn rate
In the assessment of customer success, the so-called churn rate has great importance, which indicates the abandonment rate of customers who stop using a company’s services. The churn rate is often used in combination with the revenue churn rate, which takes into account the different economic weight that each customer has.
Losing customers is never pleasant and it is important to identify the reasons in order to stem this trend as soon as possible. Naturally a customer who spends on average 400-500 euros every month has a different weight compared to one who spends 100 euros over the span of a single year. By using these two indicators you can better understand how to offer a personalised service based on the profile of your customers.
Net promoter score
Another important parameter for customer satisfaction success is the net promoter score, which assesses the loyalty of customers and therefore the probability that they will return to spend or that they will speak well of the brand with a friend or an acquaintance. This indicator takes on considerable importance especially in anticipation of future turnover.
Customer satisfaction score
Among the factors of customer satisfaction success falls the so-called customer satisfaction score, closely linked to the net promoter score, which directly asks customers to measure their overall satisfaction based on the services received.
Customer lifetime value
The customer lifetime value is able to quantify the value of a customer for the entire duration of their relationship. From this perspective it is important to emphasise that building customer loyalty proves much less costly than winning new ones. By improving the customer lifetime value of a customer it is easier to ensure growth in economic terms.
Net easy score
We conclude with the net easy score, which measures how easy it is for a customer to interact with a company and, in more detail, to solve a problem or request specific information.
Now you know all, or almost all, the secrets of customer success. To find out more contact us; together we will know how to find the solution suited to your needs.
