With Totango’s leading, open approach to customer success, companies can enable the three necessary components of a successful E2C Enterprise to Customer growth strategy: customer-centric data, customer engagement, and enterprise impact.
Times are changing. The old sales idea of courting and closing a customer in a single effort and considering their value “bagged” from a one-off transaction is as antiquated as dial-up modems.
After all, the digitization of business has empowered customers to seek long-term gains from short-term investments. Customers in the B2B and SaaS markets are inclined toward subscription options where they pay on a monthly or annual basis for a service they can discontinue at any time. This shift means there is far more value to be generated after the sale through repeated renewals, as well as possible upsells and cross-sells.
This is why customer success is critical now. We are running our business in a reality of today’s customer-centered economy. Enterprises reap the most benefits of nurturing customer relationships long-term in order to keep customers constantly satisfied.
The Role of Customer Success Teams
Customer success teams focus on the continued delivery of customer satisfaction in order to inspire loyalty and build mutually beneficial customer lifetime value.
It’s all built on a simple market reality: customers want products and services that are easy to work with and help them drive their goals quickly and effectively. The slight digital twist on that truism is that today’s customer wants a product that responds directly to their business, their environment, and their goals. One-size-fits-all solutions simply don’t cut it anymore. Instead, you have to mold your enterprise and service to reflect the needs of the customer, demonstrating how the product can deliver continued value over time.
Through repeatable, personalized actions, the enterprise nurtures customer growth in anticipation of continued renewal and upsell, like a farmer nurturing an orchard of trees to repeatedly bear fruit.
The Customer Journey
Customer success teams constantly monitor customer progress and product use over the customer lifetime. There’s no endgame to this process—unless you encounter churn—but rather a cycle of recurring engagement and growth.
This cycle continues across the four pillars of the customer journey:
This is where the proverbial rubber meets the roads and the customer begins to use the product independently. During this phase, customer success teams carefully monitor customer metrics to make sure the product is being used often and effectively.
Consider renewal as an outcome of the customer experience and the efforts of customer success engagements. Upsells aren’t dependent on timelines and are not even helpful for some customers. But if a customer is ready for expansion, customer success teams need to be there to help.
These four pillars of customer success are ways of managing the customer journey. At each phase, the customer success team works to create a responsive customer experience that will ultimately deliver recurring revenue.
Why Customer Success is Important for Enterprises
Staying constantly engaged with customers throughout their product journey allows the customer success team to proactively intervene with and improve the customer experience. Monitoring metrics such as product usage and license utilization equips the team with personalized data that informs future engagements.
For example, say product usage drops over the course of a month. Other data shows that business is usually slow during this month in their particular location, but you also see that there are more open support tickets this year compared to last year. By looking at all these different data points, you can reach a clearer picture of the situation and what is really going on. Perhaps usage is normal but training during onboarding has been lacking this year, causing more people to open support tickets. Then, you can take action and provide a solution—such as by improving customer education during onboarding— before the issue leads to churn.
Such a proactive approach allows you to retain customers long-term. This is beneficial when it comes to revenue since acquiring a new customer costs five times as much as retaining a current one. Your enterprise will not only earn higher profits for longer, but it will also develop a reputation as a company that takes good care of its customers, which can attract new customers.
Using a Customer Success Platform
Since taking good care of all your customers is critical, it’s worth investing in software that will streamline the process. For instance, you could monitor customer product use and automate key actions using a customer success platform.
This platform helps your entire business take a customer-centric approach. It contains both customer data and best practice engagement models, thereby benefiting both your company and your customers. By combining the information held within, you can generate an accurate and ever-changing summary of the customer experience called a customer health score. The customer health score is a way of keeping track of a customer’s progress so that the customer success team can proactively and successfully provide value at any point along the journey. It will also alert you of notable events. For instance, if a customer is not fully adopting certain features, the platform can alert your team so that you can take proactive action to engage and educate the customer before they reach out or, worse, decide to churn.
Adopting a Customer-Centric Approach
The customer success team is a vital component of any customer-centric enterprise. You need to acknowledge that the value of customer engagement is now spread over repeated subscription renewals and not contained within a single sales transaction.
To reap the full value of customer acquisition, enterprises must inspire loyalty that generates long-term commitment. The only way to make a customer relationship endure for years is to continually engage the customer and help them realize value.
You are now partners with your customers in a mutually beneficial search for lifetime value.
Totango customer success software helps you stay relevant to your customers so you can promote growth and limit churn.Request a demo orexplore Spark to discover new customer insights.
Every business needs to be able to make and increase profits. We go to exhaustive lengths to find new ways to make our businesses more profitable, but sometimes the answer is right in front of your nose: if you want to raise profitability, retain customers over a lifetime.
Exploring the Link Between Customer Retention and Profitability
Think about all the time and effort your marketing and sales teams put into gaining a single new customer. Why burn through these resources, over and over again? There’s a better way.
The longer you retain a customer, the more value you receive for your acquisition cost. According to a study by Frederick Reichheld of Bain & Company, for financial companies, even retaining 5% more customers can increase your profits 25% or more. And that means every customer you win is a customer you should try your hardest to retain.
Simply put, if you raise customer retention, profitability will also increase. The moment a transaction is complete, your business must change its focus to customer retention. The transaction should be viewed as the first of many customer engagements, not as an end unto itself.
A customer’s purchases throughout their lifetime directly raise your profits. But don’t underestimate the value of positive word of mouth they spread about your brand and the prestige of having a loyal customer base. Happy, engaged customers will stay with you through good times and bad, willing to test new products and features and making high-value purchases. Overall, with a base of loyal customers, your profits will increase over time and you’ll spend less money on acquisition.
Tips on Boosting Customer Retention
Start your journey to greater customer retention by making your business model more customer-centered, putting the customer and their needs first in all that you do. Build a lasting relationship with the customer by showing that you care about them. Be sure to clarify the customer success objective with the customer and keep notes on every customer interaction so you can understand what value they want to derive from your product. The more background information your customer success teams have, the better they will be able to personalize customer engagements.
When a customer is transferred from the sales team to the customer success team, it’s important to make sure all relevant information is properly communicated. It’s the responsibility of sales to explain the customer’s objectives to the customer success team: why did they buy the product, what are they hoping to achieve, and how soon?
This way, once the customer success team kicks off onboarding, they will already have a firm understanding of the customer. Customers will feel more satisfied right away knowing that the company knows their goals and that team members are communicating well. After the customer finishes the initial sales call, they shouldn’t have to repeat their needs or goals.
#2: Make a Connection
When a new customer makes a purchase, you need to immediately start developing the customer relationship. Proceed as you would with any other relationship, treating the customer as the important person they are. Thank them for choosing to do business with you by sending an email or a note. Personalize the message as much as possible so that the customer will feel like a valued individual.
In this first communication, engage the customer in a way that makes it clear that you understand their business and care about their goals. A good handoff involves personalized communications. The point is to show your appreciation and make a human connection. Next, offer the customer useful information, such as a how-to tutorial or FAQs. Continue to monitor their product use during onboarding and help them fully adopt the product.
#3: Be Responsive
When a customer contacts you for any reason, be responsive! If your team is quick and attentive in replying to customer contacts, your business can make significant progress in increasing customer retention and profitability. Why? Because customers are waiting to see how you will respond and if you will help them find the positive resolution they want.
Listen to customer concerns and criticism with an open mind. If the customer has an escalation, try to understand the customer’s predicament from their point of view. Make sure your team is available to answer customer contacts and respond as soon as possible. Similarly, make sure you resolve their issues in a timely manner.
#4: Maintain an Ongoing Conversation
Once you’ve established a bond with a customer, maintain that bond with ongoing engagements. This means keeping in touch with customers and finding a reason to contact them even when they don’t need you, just to make sure your brand has a presence in their lives.
You could work on establishing communities that will help customers connect with and help each other. When there are new product releases or updates, be sure your customers know. No matter the form, always follow-up with customers to check in on their experience and reward loyalty. While you’re there, ask for feedback. This will help you understand how to improve the customer journey and show customers you care about their opinions. In short, nurture a conversation and always listen to customers, no matter what they have to say.
IncreaseCustomer Retention and Profitability with the Right Software
If you want to increase profitability, try retaining long-term customers by nurturing the customer relationship. To accomplish this, it’s important to give your customer success team the right technology to succeed. Using a robust customer success platform, your enterprise can gain all the functionality it needs to deepen the customer relationship at every stage of the customer journey.
As your company matures, you should be retaining more customers versus simply acquiring new ones. With a customer-centered model, profitability and growth will follow naturally.
WithTotango and our customer success platform, your team gains visibility over all stages of the customer journey, making it easy to engage customers and prevent churn. Request a demoorexplore Spark to learn more about how Totango can help you retain customers and increase profitability.
The digital transformation of business has created a customer-centered economy where customers seek short-term commitments and value choice, flexibility, and personalized service. This has irrevocably changed how enterprises need to approach customers. Instead of capturing the bulk of customer value at the initial sale, digital companies now rely on an ongoing process of renewal and upsell that can potentially continue for years.
The challenge is to focus on nurturing customer relationships and prioritizing existing customers rather than hunting down new ones. Like farmers cultivating an orchard, enterprises must promote the growth of customers through personalized engagements that lead to repeated revenue yields, or harvests, throughout the customer life cycle. By constantly helping your customers grow, your enterprise will reap substantial long-term rewards.
How to Nurture the Customer Relationship
The goal in this nurturing approach to customer relations is to yield stable profits over many years. By investing in the long-term success of customers, you can draw repeated yield through subscription renewals and upsells that result from customer lifetime value while also providing consistent value to your customers. And this repeated revenue stream is the lifeblood of SaaS and related enterprises.
In order to retain customers, you need to create a positive customer experience at every stage of the customer journey. As such, your entire enterprise needs to adopt a customer-centered approach. Every time customers engage with you, they should feel understood, valued, and acknowledged.
There are several ways to inspire the feeling that the customer is at the center of everything you do, including:
Share Insight Across the Enterprise
Customer satisfaction is the responsibility of every member of an enterprise. By sharing customer data across functions and teams, you can ensure that every engagement is informed and personalized. This means every customer-facing team member should have access to customer data and that cross-function communication should be encouraged.
Business metrics that demonstrate how product engagement affects revenue.
Adoption metrics that reveal how a customer uses the product.
Outcome metrics that reflect product ROI.
Remember, customer metrics should always lead to action. Take the information and use it to generate customer value.
Prioritize Ongoing, Value-Driven Communication
Every customer communication should be informed by their unique journey. You should be keeping an eye out for changes in product usage, feature engagement, and where a given customer is on their journey. Using this personalized data makes it possible to have meaningful conversations that reflect and enhance a customer’s business reality.
Invest in Current Customers
Your customers can make your enterprise better. By monitoring their interactions with the product and listening to their feedback, you can produce more effective and productive solutions. For example, if a customer is having trouble integrating a product feature into their workflow, it could be a sign that the onboarding process was lacking. By working with the customer to produce a better outcome, you not only improve their experience but also make it easier to deliver value to future customers. As such, customers can play a vital role in updating, streamlining, and improving your process.
Don’t underestimate the value a satisfied customer can deliver to your brand image either. Customers don’t exist in a vacuum. Their experience, both negative and positive, will make its way to the attention of other potential customers.
Tools for Nurturing the Customer Relationship
At the heart of the customer success process lies the customer success platform. This living repository of customer data captures and analyzes information from every customer engagement, including:
Financial: Contract and transactional data.
Voice of Customer: Survey responses and satisfaction scores.
Personal: Behavioral data and demographics.
Product Usage: Features being used and frequency of use.
Support: Helpdesk tickets and support status.
Touchpoints: Logged interactions with anyone in the enterprise.
Use this information to guide customer success efforts and take proactive action to deliver value to customers—value that ultimately sustains both parties.
Nurturing the Customer Relationship is Essential
Thriving in the era of digital service delivery requires us to revisit some old ideas about creating long-term value. Like the farmers that intimately tend their orchards in order to sustain their own growth, enterprises need to develop a nurturing relationship with customers in order to prosper themselves.
Your success is undeniably linked to your customers’ success. Their continued experience of value creates loyalty that leads directly to the dependable, recurring revenue of annual renewal and upsells. If you invest time in making your customer success team and your product essential to your customer’s daily workflow, then they will repay you with years of continued growth.
Totango understands that you succeed when your customers do as well. Our customer success platform helps you better understand, monitor, and respond to your customers’ needs so you can position yourself as essential to their growth.Request a demo orexplore Spark to learn how to build better customer relationships today.
In the past six years, we’ve experienced tremendous success with our annual Customer Success Summit. Given the overwhelmingly positive response to our Executive Forum in Napa earlier this year, we are bringing the same focused, hands-on learning and collaboration approach to our Customer Success Summit – Team Edition. This premier event will take place September 11-13 in the bright lights of New York City.
So why should you register today?
Benefits for Your Customer Success Team To Attend
The sessions: Best practices and techniques for high performance
In addition to experts from Totango, we’ll have the best and brightest practitioners in Customer Success at this event – our customers. By joining us, you’ll get to hear how to unlock even more value for your customers and business through customer success practices, techniques, and, of course, Totango. Our interactive format will not only allow you to hear from many leaders and practitioners, but engage in meaningful dialogue to help advance your programs and practices.
The shared learning experience
Whether your entire team is attending or you are representing your team, the Customer Success Community is a strong and collaborative group. Teams that attend together will benefit from a shared learning experience that will help to rapidly implement new approaches. Attendees representing their teams, will benefit from the collective learning and experiences of others that are shared at the event. No matter what the size of your group, you’ll hear from experts on how to drive innovation, consistency and positive change for customers and, as a result, business results.
The focus: Targeted focus on customer success professionals and practitioners
We have designed this event from top to bottom with a focus on you – from the sessions, to the engagement with peers and experts, to the how-to sessions to enable you to get the greatest value from your technology. That is why this year’s Customer Success Summit – Team Edition is a more focused, enhanced learning experience in a more intimate setting that will allow for more impactful connections.
How To Register
Learn more about our group rates and hotel accommodations for Customer Success Summit – Team Edition in NYC.
If you are interested in speaking at this intimate event you can apply here.
We look forward to sharing the progress made in Customer Success best practices and helping you achieve your goals.
You wouldn’t throw your money away on the street, would you? Or drop it down the garbage disposal? If you’re not working hard to retain customers, you may as well—because you’ll be losing money.
A one-time customer is a lost revenue opportunity. Instead of becoming a loyal customer who spends money and gives good word-of-mouth advertising, the one-time customer is there one moment and gone the next. In their wake, they leave an absence that your marketing and sales teams must spend time and money to fill. Time and money that could have been saved—if you’d focused on customer retention.
New customer acquisition costs a lot. You have to pay for advertising, content creation, employee salaries, and a host of other costs. To learn how much you’re spending, add up all of your sales and marketing expenses and divide that amount by the number of new customers won. This is your acquisition cost. Don’t pay it over and over to drum up one-time customers.
Instead, use customer retention strategies to keep your hard-won customers. To get you started on the path to saving money, we’ll examine the importance of customer retention and how you can raise your retention rates.
The Importance of Customer Retention
What’s the importance of customer retention? Well, it can mean the difference between lasting success or a flash-in-the-pan startup. Your business needs a loyal, long-term customer base to become well-established and ensure future revenue. Furthermore, retaining customers just makes good business sense.
After all, attracting a new customer costs five times as much as keeping an existing one. Loyal customers are more profitable, spending more money than one-time customers. And because they enjoy your brand so much, loyal customers are likely to recommend you to their friends, family, and on social media. No amount of advertising has the authenticity of word-of-mouth referrals, and the larger your brand’s following, the more prestigious it appears.
Your loyal customers will be more willing to explore any new products and test out your initiatives. They’ll give you more feedback, which is critical data that can be used to improve your products and services—as long as you engage them correctly.
How to Raise Customer Retention Rates
Raising customer retention rates starts by tracking your customers’ progress with your product. Is a new customer using the product less and less? Are there features they have yet to adopt? These may be signs that the customer needs assistance. In this situation, you must reach out to these customers and intervene before they churn.
If a customer contacts you, respond as soon as possible. When customers call, train your customer success team to speak with a friendly voice and show empathy. This communicates sincerity and goes a long way in deepening the customer relationship.
Stay on their radar by sending regular communications, such as automated emails about webinars, product features, or enhancements. But whenever possible, personalize your communications. This humanizes the relationship with your brand and makes the customer feel like an individual.
Always answer questions quickly and double-check to make sure your team is giving out the correct information. Practice how your team addresses customers. For example, if a customer is struggling, a team member could call them up and say, “I notice you are having trouble with X, Y, and Z. Would you like to review these features? I’m happy to help.” With ongoing trainings, your customer success team should have a clear understanding of good communication.
Always be open to customer comments, even negative ones, and encourage them to voice their opinions. Rather than simply hoping customers will leave feedback, reach out to them on a regular basis. Initiating contact will give you a broader sampling of varying levels of customer satisfaction.
Ultimately, the goal is to form a relationship with customers. Treat them like family. When you make a promise, don’t just keep it—exceed expectations. When you go above and beyond, you impress customers and make them feel special.
Retain More Customers Using a Customer Success Platform
The importance of customer retention is resoundingly clear. Long-term customers require fewer advertising dollars, are more likely to want upsells, provide your business with reliable revenue, and improve your brand’s reputation. And it doesn’t just benefit your enterprise, either; customers who stick around can enjoy the stability of a long-term partnership that helps them achieve the business value they desire.
Customer retention may be tricky if you don’t have the right software for the job, though, especially if you have large numbers of one-time customers always coming or going. So, position your organization to successfully retain customers by implementing a customer success platform. That way, you’ll have all the tools you need to grow a loyal customer base that spends far more on your brand than one-time customers ever would. And that means stable profits and steady growth for years to come.
Totangooffers all the functionality you need to increase your customer retention rate. It can automate communications, track customer health scores, and let your team know if customers are struggling. Request a demoorexplore Spark to learn more.
What’s your company’s most precious asset? It’s not your inventory, your stock options, or your intellectual property. It’s your customers. Your business can’t exist without them, and if you want your business to last, you’ve got to make them happy. In fact, customers are far more than just assets; your relationship with them forms the very foundation of your company.
Every interaction a customer has with your brand and product—from the first ad they see to the moment they implement your software—matters. Customers will stick with a brand that provides reliably good service, but improving the enterprise customer experience can be challenging. If communication within your organization is stilted, then it’s impossible to keep the customer experience consistent. And because customer data has grown in complexity, all members of your organization need access to a single, shared source for customer histories and health scores.
If this situation sounds familiar, don’t give up. Put these tips to work and your business can improve its enterprise customer experience in no time.
How to Improve the Enterprise Customer Experience
A positive customer experience can reduce churn rates, inspire brand evangelism, and increase revenue. And any initiatives that lock in long-term growth are certainly worth implementing.
To improve the customer experience, everyone within your organization must adopt a customer-centric approach. Why? Because the customer experience is the cumulative result of the effort put forth by every team member. No single person can turn the customer experience around without an organization-wide effort.
What that in mind, here are some of the best tips for improving the enterprise customer experience:
#1: Understand Your Customers
The first step when enhancing the enterprise customer experience is to know your customer’s wants and needs. You must learn about your customer’s goals before you can evaluate how well you’ve delivered that value.
As such, you need to meticulously gather and track customer data. This way, you can gather relevant data and make sense of it in order to drive the right actions and engagements. It’s also important that you optimize the onboarding stage so that you are able to gather all the info you need about your customers. Sit down and figure out their goals and expectations so that you can effectively meet their needs.
#2: Connect with Your Customers on an Emotional Level
You should make an impact on your customers on an emotional level and forge a bond with them. One way of doing this is by having a relevant brand identity that resonates with your customer base. Take the information you learned about your customers and use those insights to form a relevant brand identity. For instance, are your customers primarily large businesses or smaller ones? If many of your customers work in, say, the financial field, what features will be particularly relevant to them?
In order to establish a strong bond with your customers, keep an eye on your customer’s health at all times. Engage with them on important occasions, such as their one-year anniversary working with your company, to add a personalized touch. Reach out when relevant events occur, such as goal completion or the addition of a new feature. By demonstrating that you really care about your customers, you can promote loyalty and high satisfaction rates.
To understand churn before it develops, keep a close eye on your customers’ progress through every stage of the customer journey. Even small increases in customer retention can greatly increase your company’s profits. So, make sure you identify problem areas within the customer experience to start retaining more customers.
Improve the Enterprise Customer Experience with a Customer Success Platform
It’s easier to implement these tips with the help of a customer success platform. A customer success platform enables everyone within your organization to access information about a customer’s status at any time. It can identify if your customers are struggling and help you find a solution. By engaging everyone across your organization within a single system, you can automate and create workflows that get everyone working as a united team to enhance the customer experience.
Remember, if you want to make customers happy, you must give them the positive brand experience they’re looking for. You can do so by using best practices and by leveraging a customer success platform to gain visibility, responsiveness, and control over the enterprise customer experience. Having a great experience at every point of contact will deepen customer trust and build long-term relationships. You’ll be able to gather feedback from customers and improve operations. Loyal customers will speak positively about you to their friends and families and on social media, saving you marketing dollars.
In short, improving the enterprise customer experience makes your business more profitable and gives your brand an outstanding reputation. The benefits of an enhanced customer experience are mutual—after all, your business can’t exist without your customers.
Totango helps enterprises achieve their customer experience goals every day. Our software offers everyone within your organization access to customer information, best practices, and metrics that help you create a customer-centric business. Request a demo or explore Spark to learn how we can help you.
These days, customers expect personalized service. Whether they’re shopping for software or a way to increase sales, they expect you to be right there next to them searching for every potential edge that will help them grow their business.
The digital transformation of business means that customers can easily leave a professional relationship that isn’t working for them. has left the customer in control of a professional service partnership built on short-term subscriptions and long-term growth. Enterprises need to keep customers happy because it’s never been easier for them to find alternatives.
As a result, the most important customer-centric goals for an enterprise exclusively focus on knowing customers, delivering value, and doing so in a repeatable, annual cycle of commitment and recommitment.
Constantly Deliver Value
Customers expect high standards. Delivering clear value makes you critical to your customer’s success and future growth. The loyalty that inspires pays off in the form of recurring revenue.
All customers are essentially seeking the same thing: ROI on investment and to achieve their personal business goals. Still, you need to know more in order to build a highly responsive and personalized service.
Start by gathering all the information you can about how a customer uses your product and how it links to their core business. Every customer interaction, demographic profile, product usage statistic, article of feedback, and feature adoption rate contains insight you can share across your enterprise to inform future engagements. You want to connect the dots of relevant customer data and turn it into actionable insights by creating a contextually relevant digital representation of your customer.
If a customer reaches the seat limit on their license, you should know. If a customer stops using your product for a week, you should know. If a customer has to wait on an escalation request, you should know.
The more you know about the actions your customer takes, the more proactively and effectively you can serve them.
Deliver Value Early
Realizing value is the heart of the customer relationship. And the sooner you can demonstrate value and help customers meet their goals, the sooner you can deliver on the promises made during the sale.
So, onboard rapidly and efficiently, making sure customers have all the information they need to hit the ground running. The first step is to focus on your customer’s goals and helping them achieve them by driving the right engagement behavior. It’s also helpful to operationalize your engagement model so you can proactively and intelligently engage customers. The goal, after all, is to familiarize them with the product so they can integrate it into their daily workflows and start seeing ROI.
Nurture Customer Growth
In order to help your customers grow, you need to effectively engage with your entire customer base throughout the whole lifecycle. This means adjusting your engagements depending on what stage of the customer journey a customer is in, whether it is onboarding, adoption, or renewal.
You should also constantly monitor customer success metrics that link directly to business results. Look for answers to these three questions:
Is the customer using the product?
Is the customer getting value from the product?
Is the customer enjoying a positive relationship with your enterprise?
To uncover those answers, monitor customer success metrics that measure active time spent within product, license utilization over time, fluctuations in customer feedback, and outcomes such as free trial conversion and survey response rates.
Personalize Engagement Model by Modifying Best Practices
Use your deep knowledge of your customers to predict future events and take action. This could mean anticipating potential bottlenecks in the onboarding process or providing educational opportunities for new features before a customer asks for help. If you know your customer’s goals, you can create a personalized guide to future growth.
By closely monitoring customer progress, you should be able to recognize repeated product patterns. Take a hierarchical look across your accounts and anticipate your customer’s future needs based on what others have and are currently experiencing.
Build the Enterprise Around the Customer
Every time a customer engages with your enterprise, they should feel like the only customer on your books, like you know everything about their experience. Responsive, personalized service stems from genuine customer understanding. You have the customer data and product knowledge to make every engagement worthwhile.
Another strategy is to share your customer knowledge across the entire enterprise. This way, you encourage team members to log every interaction and fill each customer engagement with personalized knowledge. Every member should be empowered to access customer data, participate, and play a role in impacting customers’ business outcomes.
Customer-Centric Goals that Produce Results
All customer-centric goals should aim to provide value based on a solid understanding of the individual customer. Like personal shoppers that know what a customer will like based on previous experience, enterprises must collect customer data with an eye toward using it to improve the customer experience.
The digital marketplace challenges us to sustain our customer relationships over time in order to generate recurring value that is ultimately far more important than a single sales event. When you deliver lifetime value, you can reap lifetime rewards.
Totango offers customer success software that helps you use data to provide a personalized customer experience that promotes long-term growth. Request a demo orexplore Spark to start building your business in your customer’s image.
We know that our customers spend their day to day in Totango Spark. This enables them to stay always up to date with their customer status and goals. During this year we focus a lot on Customer Success Manager productivity and we just release Account Profile Links to enable them quick access to all systems. Keep reading to learn how this feature will enable your team to focus on the customer and deliver results.
Custom Account Profile Links
Totango is your one-stop-shop for all customer data; however, it’s not necessarily the system of record for 100% of that customer data. In fact, it’s common for Totango customers to integrate with dozens of systems. Sometimes it’s necessary to go into these other systems to gather context about a particular customer. So, we’ve made it simple to configure custom links that enable you to open corresponding records in third-party systems directly from the Totango account profile page.
As a reminder at the beginning of every quarter, you are encouraged to join our Roadmap Preview webinar hosted by Totango’s Senior Vice President of Product Management, Ravit Danino. The next session is on July 10th and space is limited, so make sure you register now!
This will be a great oppurtonity for us to share with you our great plan for Totango’s third quarter of the year (July-September).
What do America’s longest running companies all have in common? They focus on the big picture: customer lifetime value.
If you want your business to last, you need to prioritize customer lifetime value, too. To succeed in today’s customer-centered economy, you can’t simply focus on attracting new customers. After all, there are plenty of competitors to choose from, and customer expectations are higher than ever. Instead, view each customer in terms of their lifetime value, meaning the total amount they may spend long-term if you retain them.
For companies willing to evolve, the benefits of customer lifetime value are many. By cultivating customers who have a high lifetime value, you can ensure stable revenue for years to come. But first, you have to know how to retain them.
The Benefits of Customer Lifetime Value
When you emphasize customer lifetime value, you can cultivate a base of loyal customers to ensure steady returns on a regular basis. This strategy will secure your market presence for decades to come.
Cultivating customer lifetime value:
Is Cost-Effective: Convincing a new customer to make a purchase is an expensive process. It costs advertising dollars and requires sales people and sometimes even the collaboration of several different teams. By simply keeping the customers you already have, you avoid paying these expenses a second time.
Fosters Brand Loyalty: Customers with high customer lifetime value have proven their loyalty, and loyal customers are likely to spread good word-of-mouth about your brand and evangelize online. This provides unsolicited testimonials, which potential customers see as highly credible, and improves your brand reputation.
Saves Time: Knowing each customer’s customer lifetime value helps you identify where your customer success team’s efforts are most likely to pay off and who would benefit from an upsell. High customer lifetime value clients already have a track record of bringing in strong revenue, so go straight to this group when looking for growth areas.
Predicts Churn: Customers with high lifetime value are less likely to churn. They have a track record of success with your product and aren’t likely to leave unless something changes dramatically.
Of course, the higher your customers’ lifetime value is, the more your company will profit. So, the more work you put into raising customer lifetime value, the more revenue you’re likely to bring in.
How to Reap the Benefits of Customer Lifetime Value
Move away from just thinking about single-purchase customers so you can encourage customers to continue using your product. The goal is to cultivate more repeat customers until they make up the majority of your sales. You can start simple, with the goal of getting one-time customers to come back for a second transaction. Some ways of doing this include contacting the customer to remind them of the value your product offered them. Depending on the product or industry, you could make follow-up phone calls. You can also ask for feedback. Whatever you do, remember that winning a customer back for a second purchase means starting a relationship with them. As time goes on, you’ll form a lasting bond with the customer.
Next, focus on getting repeat customers to increase their order frequency rather than trying to raise the amount spent per order. This gets customers in the habit of buying and using your product. From this point on, focus on raising customer loyalty. You can do this by implementing customer loyalty programs or connecting with customers through feedback surveys, special offers, or other rewards. As the number of loyal customers increases, you can expect more revenue that doesn’t come at the expense of your advertising budget.
Onboarding begins as soon as the transaction is complete and lasts until your customer learns how to use all your product’s features. If customers don’t fully adopt your product and gain value from it during onboarding, they run a high risk of churning—higher than any other stage.
Be sure to communicate the value your product offers from the very start. Provide how-to videos and tutorials. Monitor your product use and if you see a reduction in the frequency of use, alert your customer success team so they can offer help.
Provide Value Constantly
Continue to provide value, even when the customer moves into the adoption and renewal stages. Engage customers through tactics such as by releasing new features or periodically sending automated communications. These messages can provide information such as how much money your product has saved the client, information about their resolved support tickets, or how the customer is progressing toward certain goals. Never stop proving your product’s worth to your customer and you’ll eliminate one of the greatest causes of churn.
Retain Customers for Life Using Customer Success Software
Customers have plenty of choices in today’s customer-centered economy, and if your company prioritizes the pursuit of short-term revenue, customers will be more likely to churn. Instead, ensure stable revenue from loyal customers by cultivating the benefits of customer lifetime value.
But cultivating customer lifetime value doesn’t happen overnight; rather, it requires a dedication to enhancing the customer lifecycle long-term. If your business is having trouble engaging customers in meaningful ways, try using customer success software. It can give you the functionality you need to measure, respond to, and improve every stage of the customer journey.
America’s oldest companies have lasted this long because they’ve built loyal customer bases by adapting to meet changing customer demand over the years. Give your success team the functionality it needs to provide deeper customer engagements and your business can last a lifetime, too.
When you need functionality that can help you build customer lifetime value, try Totango. Our comprehensive customer success software helps you retain customers and increase loyalty at every point along the customer journey. Request a demoorexplore Spark to learn more.
Customer Success Management (CS) software helps your enterprise understand what matters to your customers. And what matters most to your customers should matter most to you.
The reality of the unique relationship you share with your customers is captured in the raw numbers your CS software gathers, detailing usage rates, demographics, logged interactions, voice of customer data, and other key metrics. By sharing the insights of these multi-dimensional data streams across your enterprise, you increase accountability for the customer experience and create a customer-centered enterprise that is poised to effectively deliver customer lifetime value. It all starts with knowing how to gather customer insights and properly leverage that data.
How Does CS Software Work?
A customer success platform contains all the information needed to create a complete picture of your customers. It is a living repository of every customer engagement, touchpoint, product interaction, and piece of data generated by your customer relationship.
This covers every aspect of the customer relationship, including:
Financial: Contract and transactional data.
Voice of Customer: Survey responses and satisfaction scores.
Personal: Behavioral data and demographics.
Product Usage: Features being used and frequency of use.
Support: Help desk tickets and support status.
Touchpoints: Logged interactions with anyone in your enterprise.
You can generate an overview of a customer’s satisfaction with your product by combining key metrics into a singular health score. This metric provides at-a-glance insight into a customer’s likelihood to renew. Alternatively, you can use the customer success platform to delve deeper into specific metrics, such as adoption rate, in order to examine the factors that matter most to your unique customer.
Either way, you’re gaining insight into your customer’s relationship with your product. That knowledge is essential to creating a customer-centered enterprise that can generate ongoing value for customers.
How to Use CS Software to Achieve Your Goals
The digitization of business has created a customer-centric economy dominated by subscription services and SaaS enterprises. It’s a customer-driven market that empowers short-term thinking and an expectation of personalized service. The bulk of customer revenue is now gathered through repeated renewals and upsells rather than at the point of sale. As such, enterprises need to continually deliver value to customers in order to inspire loyalty.
The insights from CS software will keep you informed of your customers’ experience with your product at every step of their journey. From onboarding through adoption to renewal, you’ll be aware of exactly how your customer is using your product—and how you can help them maximize their investment.
The onboarding process is all about giving customers the tools they need to integrate the product into their daily workflows. It is a critical first step, one that can define the customer’s attitude toward you and your product throughout their journey.
CS software allows you to monitor and guide every step of the onboarding process. For example, you can track the time spent on customer training and measure this progress against historic expectations to understand where a customer is on their journey and how to proactively help them. This information is then stored in your CS database for future reference. A customer that takes longer than expected to complete onboarding, for instance, may also require extra training sessions during the adoption phase.
With CS software, it’s easy to track product usage. You should monitor metrics such as average time of login, frequency of product access, and new feature access in order to identify signs of positive growth or churn risk. You can customize CS software to alert you of fluctuations in product usage over any measure of time, be it weekly, monthly, quarterly, or annually.
As your relationship develops, these alerts provide insight into your customer’s journey and can let you know if any actions need to be taken.
If, for example, a customer has reached the maximum number of seats allocated to their account and is continuing to grow, it may be time to offer additional access. Conversely, if your CS data is telling you that a customer is not frequently using a particular feature, you may consider more education initiatives.
In this way, CS software prompts proactive responses to a customer’s unique circumstances. It can provide a digital trigger that a customer’s situation has changed or that they have reached the end of a certain phase in their journey.
How to Gather Customer Insights that Matter
Your customer success software records every interaction in your customer relationship and makes it easier to identify the next steps. By collecting data from every touchpoint within your enterprise and sharing the resulting insights across your organization, you can create a better experience for your customers.
Used correctly, CS software helps you anticipate your customer’s needs and deliver lifetime value for years to come.