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Customer Success Management
Written by Ana Canteli on April 17, 2023
Companies interested in getting the most out of their customer relationships could invest in creating a Customer Success Management (CMS) department. In English, it is known as Customer Success Management, and let's not kid ourselves; it is nothing new either. Caring for our customers is inherent to business continuity. However, it is now confirmed that, with all the benefits and advantages that technology brings, it would be a waste to continue approaching customer relations the old-fashioned way.
Customer Success Management (CSM) is the process of ensuring that customers successfully use the company's products or services. The primary objective is to provide long-term customer satisfaction and loyalty by maximizing the development or service's adoption, usage, and value.
CSM combines technical, business, and relationship management skills to ensure that customers are satisfied and derive long-term value. By investing in CSM, companies can increase customer retention, loyalty, and customer satisfaction, increasing revenue and business growth.
Adopting Customer Success Management (CSM) software is essential to start with this business model. It is a platform designed to help customer success management professionals to improve customer relationships, ensuring the completion of the bond with the company and long-term satisfaction. We take this opportunity to name some of the features of any CMS software.
Adopting Customer Success Management (CSM) software is essential to start with this business model. It is a platform designed to help customer success management professionals to improve their relationship with customers, ensuring the completion of the bond with the company and long-term satisfaction. We take the opportunity here to name some of the features of any CMS software.
- Customer management: CSM software allows the control of detailed customer information, including their usage history, activities, interactions, and problems they have experienced.
- Metrics tracking: The tool monitors meaningful performance statistics for customer success management, such as renewal rate, product adoption rate, problem resolution time, and overall perceived customer satisfaction.
- Process automation: CSM software can automate repetitive tasks and save Customer Success Managers time, allowing them to focus on more strategic tasks, such as defining customer success plans and resolving major issues.
- Communication and collaboration: CSM software enables seamless communication and cooperation between the CSM team and the customer, facilitating problem resolution and information sharing.
- Reporting and analysis: Customer Success Management software provides detailed reporting and analysis of customer performance, enabling CSM professionals to identify opportunities for improvement and make informed decisions.
Customer Success Management (CSM) benefits many business models, especially those that rely on customer satisfaction to retain and grow their customer base. Some examples of business models where CSM is particularly effective are:
- Software as a Service (SaaS): In this business model, customers pay for software online rather than buying and downloading it onto their computers. Customer satisfaction is essential for retention and growth in this business model, and the CSM platform helps customers get the most value from SaaS services.
- Subscription services: In this business model, customers pay for access to a service for a set period, such as a monthly subscription. Customer satisfaction is essential to retaining customers and keeping them as long-term subscribers. CSM helps customers get the most out of services and maintain a positive experience throughout their relationship with the company.
- B2B companies: For companies that sell to other companies, customer satisfaction is critical to securing a long-term relationship and retaining customers. CSM software can help customers identify opportunities for growth and implement customized solutions to meet their specific needs.
- Companies focused on the customer experience: Companies focusing on delivering an exceptional customer experience often benefit from implementing Customer Success Management. By helping customers achieve their goals and providing high customer service and support, CSM can enhance the customer experience and increase loyalty to the firm.
Why buy customer success management software?
A company may need Customer Success Management (CSM) for several reasons, among them:
- Retaining customers: CSM focuses on keeping customers satisfied and engaged over the long term, which can help reduce churn. By having existing customers, a company can save on new customer acquisition costs and increase the profitability of existing customers.
- Increase customer value: CSM can help increase customer value by identifying cross-selling and upselling opportunities, which can generate higher revenues for the company. In addition, keeping customers satisfied with the product or service makes them more likely to recommend the company to other potential customers, which can generate new business.
- Improve customer satisfaction: CSM focuses on ensuring customers are satisfied with the company's product or service and achieving their long-term goals. If customers are happy, they are more likely to be loyal to the company and recommend the product or service to others.
- Identify opportunities for improvement: The CSM program can provide valuable information about customers, including their needs, wants, and problems. This information can be used to improve the product or service and to identify opportunities for improvement in other aspects of the business, such as customer service or user experience.
Customer success management is optimistic for other departments and areas of the company, such as sales and marketing. One of the strategies that a company can implement to attract potential customers and retain them once they have become customers is Inbound Marketing. Inbound Marketing helps to attract customers through exciting and instructive content, which can generate interest and trust in the company and its products or services. Once customers have become customers, the Customer Success Manager takes over, working to keep them satisfied and helping them achieve their long-term goals. Inbound Marketing and Customer Success Management (CSM) are related in that both focus on attracting and retaining customers over the long term. While Inbound Marketing focuses on attracting customers through relevant and valuable content, CSM focuses on maintaining and increasing the value of existing customers.
For example, imagine a company in the service industry that provides digital marketing and social media solutions has established a Customer Success Management (CSM) department to help its customers achieve long-term success with their answers.
An example of a CSM process that the company could implement for its customers could be as follows:
- Customer identification: CSM staff will identify customers who could benefit from their success management services. It could include clients who have struggled to achieve their digital marketing goals or have high growth potential.
- Defining client success plans: The CSM team will work with each client to determine a customized success plan tailored to their specific needs and goals. The procedure may include strategies to increase the company's online presence, improve follower engagement on social media, and increase website traffic.
- Onboarding and adoption: The CSM team will work with the client to familiarise them with the company's products and services and ensure they are comfortable using them. They will also provide the client access to training resources like guides and tutorials.
- Communication and collaboration: The CSM team will maintain regular contact and cooperation with the customer to ensure they are satisfied with the company's products and services and to resolve any issues or questions. Customer Success Management is the ideal channel to inform customers about new features or solutions.
- Metrics tracking and analysis: The CSM team will track performance reports relevant to the customer's success, such as website traffic growth, conversion rate, and social media engagement. Analysis of these metrics can help CSM specialists identify opportunities for improvement and make informed decisions.
- Renewal and growth: The CSM team will actively work to ensure the customer is satisfied with the company's products and services and willing to renew its contract. In addition, the CSM team can work to identify growth opportunities, such as cross-selling or up-selling additional solutions that could help the customer achieve their business goals.
With OpenKM, you can create your own customized customer success management software. The document management software has all the necessary functionalities to collect all customer-related information. Through automatisms, workflows, or optical character recognition, you can improve any business process or task, especially those that are repetitive, have little added value, and are likely to increase the rate of human error. In addition, OpenKM is a shared work platform ideal for offshore companies, with remote staff or staff located in the client's office. All authorized personnel will be one click away from the reports and metrics they need to make informed decisions. And with the OpenKM Academy e-learning platform, we'll ensure that the onboarding and adoption phase is a success for customers and our staff.
If you want to know more, get in touch with us.