We step outside the traditional Customer Success comfort zone by discussing growth and revenue preservation, as opposed to focusing solely on managing churn.
As we delve deeper into the nuances of customer relationship dynamics, let's turn our focus to critical aspect that every B2B company grapples with: Retention Management.
Retaining and Protecting or Safeguarding revenue sounds like a defensive approach to maintaining revenue. Preserving includes maintaining or retaining revenue but also proactively improving and expanding revenue.
Let's start by describing preserve, safeguard, and retain in the context of customer relationships and revenue.
Retaining refers to keeping current customers engaged and continuing to do business with your company. It's about maintaining the status quo.
Managing "Retain" involves addressing different types of churn: account churn and revenue churn due to a contraction in seats/licenses, usage, features, or products
It's akin to basic health maintenance, dealing with immediate concerns to prevent further decline
Safeguard and Protect Revenue
Safeguarding involves actively defending the existing customer base and revenue against competitors, market changes, and other external threats.
"Safeguard" focuses on defensive and reactive strategies.
It includes mechanisms to quickly respond to market changes, competitive threats, and customer dissatisfaction.
This mirrors emergency health measures, such as responding to unexpected illnesses or injuries.
Preserving implies not only maintaining the current state of customer relationships but also improving and enriching them. It's about adding value and ensuring the long-term sustainability of the relationship.
Beyond maintaining current relationships, "Preserve" involves strategic planning and proactive engagement.
Utilize offensive playbooks and prescriptive suggestions, akin to a doctor's health plan, offering tailored, proactive advice to customers.
This strategic element aligns with holistic health, where lifestyle changes and preventive care ensure long-term well-being.
Is Preserve > Safeguard > Retain?
"Preserve" is more comprehensive and future-oriented than merely safeguarding or retaining.
Preserving involves proactive strategies that enhance customer relationships and grow value, thus encompassing and going beyond the mere maintenance of the status quo (retain) or defense against external threats (protect).
While safeguarding is crucial and often reactive, focusing primarily on external threats, preserving is more proactive and holistic.
Retaining is essential but is the minimum; it's about keeping what you have without necessarily improving or securing it further.
Growing and Preserving Revenue
Onboarding and Education
Efficiently onboard customer accounts and users
Streamline the entire onboarding process, including pre-boarding, reboarding, and offboarding
Educate customers including users and executives continuously to maximize product benefits
Customer Engagement and Support
Connect with and support champions through transitions
Promptly help customers and respond to issues
Gather and act on feedback to perfect the user experience
Personalize communication to craft customer journeys and grow accounts
Monitoring and Improvement
Monitor retention and account health
Check on progress and fix issues quickly
Update products and gather feedback regularly
Evaluate product fit and adapt solutions as needed
Share strategic updates and involve company leaders
Be adaptable to unforeseen events and major disruptions
Reward loyalty and celebrate milestones
Community and Relationship Building
Prevent customer neglect and spot unsuitable customers early
Maintain relationships and foster community
Empower customers and encourage customer advocates
Product and Service Optimization
Show product value and maximize feature use
Customize services and offer flexible pricing options
Oversee the entire customer life cycle to avoid losses
Stay aware of competitors and counteract competitor moves
Strengthen against disruptions and embrace customer changes
Financial Management and Innovation
Adjust to financial changes
Simplify payment options
Reduce costs and boost efficiency
Innovate products and broaden revenue sources
Data Analysis and Quality Control
Analyze customer data to inform decisions and tailor product features.
Ensure quality across services and control risks
Strategic Planning and Partnerships
Study market trends to inform strategic directions
Form strategic partnerships for enhanced growth potential
Team Collaboration and Support
Work together across teams to enhance service quality
Support through crises with proactive measures and resilience building
Add Seats or Licenses
Increase Usage Billing
Offer tiered pricing models for upgrade incentives
Promote discounted annual plans for longer commitment
Bundling and Product Expansion
Create attractive bundle pricing for combined products/services
Enable add-ons or customizations for products/services
Loyalty and Referral Programs
Implement loyalty programs for repeat business
Initiate programs rewarding customer referrals
Customer Relationship and Value Enhancement
Provide extra services that complement primary offerings
Give existing customers access to exclusive content
Organize events exclusive to current customers
Strategic Marketing and Growth Initiatives
Run campaigns tailored to customer usage data
Market special offers to prompt quick upgrades
Conduct strategic planning for account growth opportunities
Collaborate with customers for early product feature access
Introduce options for enhanced support services
Showcase the long-term benefits of service expansion
Viewing through the lens of an AI tool
AI-driven Digital Customer Success and Account Managers, like those in cast.app, are uniquely positioned to help in preserving, safeguarding, and retaining revenue.
Modern Customer Success is a blend of proactive and reactive approaches. The reactive side of Customer Success is vital; it informs and shapes our proactive strategies, allowing us to develop new, innovative playbooks based on real-world interactions and feedback.
AI tools can analyze customer data to identify opportunities for enhancing relationships (preserve), detect early signs of customer dissatisfaction or competitive threats (safeguard), and automate engagement to keep customers involved with the brand (retain).
The AI's predictive analytics can foresee and address issues before they become problems, aligning with the idea of preservation.