The numbers are in: A Customer Success program is a must!
In a world where many of the assets and services around technology are commoditized, customer success IS the value that managed service providers bring to the table. True Customer Success delivers value to clients by driving growth and progress toward their business goals.
The numbers speak for themselves:
The numbers speak for themselves:
1. 80% of customers say the experiences they have with a company is as important as its product or service (Salesforce.com)
One important thought here is that not everyone wants the same experience so it is critical to determine what that experience should be. For some small businesses, having a completely automated experience is desirable and suits both the MSP and the business. These would be those low value (MRR), low effort clients. On the other hand, high value clients require human engagements to provide true strategic value to help drive revenue and other business goals. Segmenting your customer base to define these categories is a great place to start.
2. 76% of companies say they expect a partner to understand their needs and expectations (Salesforce.com)
This is a continuation from the first point. There is a critical difference however. The first is about experience and this is about expectations. Customer Success is more than the experience it is about helping your clients drive business outcomes. Whether discussions are had in business reviews (that might happen quarterly – QBRs – but often have a different cadence) or in other types of communication, it is key that they happen.
3. Industry consultants have shared clients results that support the statement that without a Customer Success program that delivers regularly scheduled business reviews, you are leaving about 30% more monthly recurring revenue (MRR) on the table (Stockman, 2021)
We have had partners that have closed $80k projects in first time that they really started having a strategic business review with a client – even with their long-standing clients. A recent win was an MSP who closed new MRR business to the tune of over one million dollars over the next 3 years. These both happened because they started having strategic business and risk conversations with their clients around technology – not just how to protect the businesses but how to use technology to grow the businesses.
4. 45.9% of businesses rated improving customer experience as their top priority over the next 5 years above pricing and product (Superoffice.com)
Managed service providers really need to think about how this could impact their business if they are not in that category. This could mean that their competitors will be addressing customer experience and customer success. If their competitors are growing their MSP with a strong Customer Success program then referrals are quick to follow. This is definitely a statistic to keep in mind as you are looking to business goals for next year.
5. In a Forrester study commissioned by Gainsights, an industry leader on Customer Success for SaaS businesses, it was reported that businesses that implement a customer success program experienced 66% improvement in retention (Gainsights.com)
Churn is a concern for any business. Numerous experts state that it costs dramatically less to save and grow a customer than it does to get a new one. Metrics that allow MSPs to proactively track customer health are key. This gives the MSP insights into potential churn before it becomes a loss.
If you are setting goals for your MSP around Customer Success, Literally: The Book on Customer Success for MSPs, will walk you through the thinking and the process for defining a scalable customer success program that will drive success for you and your clients. It is available on Amazon here: https://www.amazon.com/Literally-Book-Customer-Success-MSPs/dp/1646492110