Learning to build the right models and approach can save your company serious efforts down the line, equaling better ROI
Customer Success and satisfaction has always been at the top of every company’s strategic business goals. But in recent years this arena has taken on a new state of prominence, mainly because of the evolvement to subscription based engagement of Cloud services.
The issue of customer retention, and understanding that acquiring new customers costs six times more than retaining existing customers, draws direct correlation between customer renewal, the company revenue and the potential evaluation by investors.
Market research analysis of the SaaS industry estimates that 70-90% of the market’s revenue comes from existing customers. It’s no wonder then that companies invest much of their resources into understanding their customer base as this helps to forecast the total customer renewal percentage.
Companies that routinely collect data about their customers, starting with business and demographics, product usage, service calls, and customer satisfaction score can use these insights to build in-depth customer profiles. These metrics not only provide companies with a better understanding of who their customers are on an individual level, but they improve their ability to analyze and predict customers’ behavior in terms of renewal, or purchasing additional services.
In order to model the customer behavioral profile, companies need to consistently track and monitor their renewing customers’ behavioral attributes, building the optimal customer profile for success.
This profile will serve as the absolute paradigm to understanding the discrepancy between the ideal and the individual customer. It’s important to emphasize that the ideal customer profile can be built on different attributes such as the following: product usage, service case, service availability, surveys, and other parameters.
This diagram is an example of the customer health and renewal system, including the necessary realization tools.
These systems must be updated in response to business changes or changes in the customer’s behavioral profile. The data that these systems provide needs to be simple, and include advisory actions on how to better manage customers that aren’t on the renewal or success path.
The need to really understand what your customer success landscape looks like, to segment behavioral profiles, and act fast has never been more crucial to your company’s growth and success.