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One of the most significant driving factors in the rise of customer success is the growth of SaaS and subscription-based business models.
Instead of selling big, one-time deals to customers, more and more companies are moving to a subscription model. In that model, products need to prove their value before every contract renewal. Renewal hinges on helping customers continually see value and success with the product, since there’s almost always another competitor or version of the product that customers could choose.
However, customer success is universally beneficial for every company, even without the renewal and contract cycle. Data shows that for every one customer who contacts customer support, 26 customers with a problem don’t reach out. Those are all customers a business stands to lose if it doesn’t fix its problems, as research also shows that 91% of those who don’t complain simply churn instead.
By proactively eliminating potential customer problems and recognizing customer needs, customer success gives your business a better chance at retaining those other 26 customers.
When done effectively, customer success can reduce churn, improve retention and renewals, and drive revenue. Beyond those substantial fiscal bonuses, customer success also gives your company essential insights into how and why people use your product.
Customer success drives intimate customer knowledge, which ultimately creates a healthier, more risk-resistant customer lifecycle.
Customer success is the effort a business undertakes to help its customers be most successful, both with its product and in their own business operations.
However, it is no longer sufficient to assume that the company as a whole will take on customer success management; for your customers to shine, you’ll need someone (or a team) to be wholly focused on it. Dedicated customer success teams take a proactive, data-led approach to helping customers more effectively use a product.
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