How is your organization currently managing customer success? Still a buzzword only? Is it on your radar at all? Something you think that only SaaS companies care about? Or maybe you're delivering strong service and support but not taking it to the next level with a formal, proactive Customer Success program?
More importantly, how is your organization handling business growth? I would bet this is something you ARE paying attention to – how to acquire new customers, find new revenue sources, and grow revenue while watching costs.
No matter where you are in terms of business growth and customer success, a new study reveals the two share a strong link. HubSpot Research recently surveyed a group of 1,600 individuals comprised of CEOs, VPs and customer service representatives from the US, UK, Ireland, Colombia, and Mexico on their companies’ commitment to customer success.
Results showed that 70% of the companies enjoying revenue growth prioritized Customer Success as “very important.” This compared with just 49% of the companies where revenue was stagnant or declining. See the chart below.
Other questions related to prioritizing customer happiness, investing in customer service programs, and training customer service teams bore similar results. The growing companies were more likely than the stagnant or declining firms to score high in these areas.
Interestingly, the growing firms were not making these investments because they had extra cash to spend. They actually were shown to be 17% more focused than the stagnant or declining firms on running their organizations more cost efficiently, so they are continuing to watch their pennies while they grow. It seems growing companies are seeing the link between customer success and their financial success and understand they need to make investments in these areas.
So, if customer success is key to business success, it makes sense to explore what it takes to deliver it. The most effective customer success programs are integrated throughout your organization and touch every department – starting with how you market and sell, to how you onboard and serve customers, to how you show the value of your product and expand the relationship with the customer over time, to how you transform customers into evangelists for your brand.
If you are familiar with EOS – The Entrepreneurial Operating System, you know that one requirement of a sound organization is to have the right people in the right seats. It’s even more critical when you are talking about the people who work directly with your customers and are primarily responsible for ensuring their success. So, for a customer-centric organization, this means having the right people in sales, marketing, operations, finance, etc. But it goes further than that.
It is not enough to hire and train great customer service people. You have to be as committed to growing and retaining your team as you are in growing and retaining your customer base.
And this seems to be a place where companies are failing, according to this study.
While 88% of growing companies say that retaining customer support staff is important or very important, 58% of customer service representatives surveyed for the HubSpot report say they plan to leave their careers in customer service. Attrition is HIGH in this field, especially among professionals who are new to it – 81% of customer service reps leave the field within the first year on the job. This turnover is costly for companies who end up managing a revolving door of transitioning employees.
When they are asked why they leave customer service, representatives from this study cited:
The good news is that an organization that focuses on customer success AND employee success can address the reasons customer service reps leave the field. Here are some suggestions for creating more engagement and excitement within your customer service team:
Making Customer Service Rewarding
Keeping Clients and Your Team Happy
An Empowered Employee Is a Happy Employee
Everyone Wants to Feel Valued
Are you ready to learn more about implementing a solid Customer Success program at your company? Read more in our full-length resource: The Ultimate Guide to Harnessing the Power of Customer Success. Or contact us if you need any additional information. We’d love to hear from you!
Before Maureen Condon became one of the Principals of PMG in 2006, she was a writer and a business owner – which explains why she specializes in content marketing and strategy. Covering topics that will help businesses get real, measured results from marketing – success you can see in numbers – Maureen likes to back companies in their efforts to create a strategy, a compelling message, and programs that connect with prospects, clients and influencers in ways that drive sales. And she does so, with panache!