What I’ve discovered on churn versus new business metrics

I’m taking a slight diversion on this week’s blog from my recent posts around cultures and values within Workshare. This week I’ve been wrestling with the challenges of how our customer success team contributes to the business and how best to measure it. So that we are all clear on what Workshare’s Customer Success team is about, it can be summarised in 4 simple words, thanks to our rock star Customer Success Director, Kevin Swatridge:

“ Helping customers achieve value”

Whilst in other business, customer success has revenue targets, we believe that a customer success function is best placed to focus from pre-sales through to post-sales. In this way, customer success not only help bring business into the company, but by working with customers to achieve value with new and upgraded products, we ensure a higher retention rate / lower churn rate, and nurture a relationship of trust with our customers. To help us track and manage this, we have two primary mechanisms in place.

Incubation: When our sales colleagues identify a prospective customer, Workshare Customer Success works hand in hand with sales and the customer to demonstrate how our product addresses their needs and pain points, then as the customers signs up, builds a plan to help drive adoption of the product. End goal: customer achieves the value that they identified during the sales cycle.

Triage: Sometimes things do not going according to plan for customers, and whether it’s due to our product or changes within the customer’s business, Triage is our mechanism for administering a dose of TLC. By identifying the triggers that caused the problem, the Customer Success team act as internal customer champion to fix the issues and restore the customer relationship to a healthy state.

End goal: Triage turns around negative situations and avoids churn risk.

Together, these two mechanisms are having a really positive result. My key learning this week is that we have a formula for supporting revenue generation as well as customer satisfaction. The pipeline of business in Incubation versus the value of churn risk customers in Triage are directly linked to our business performance. It’s easy to track, actionable and a meaningful metric for every member of the team to focus effort where it’s needed.

What metrics are you using? How does your Customer Success contribute to your bottom line? Drop me a line: uk.linkedin.com/in/ollitervomurphy

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