How your business can benefit from hiring a customer success manager?
Key to the survival of any business is the ability to obtain and retain successful relationships. A CSM becomes vital when relationships and retention become paramount for ongoing financial success.
A business can benefit from a customer success manager in several ways:
- Expanding revenue
- Preserving revenue
- New sources of revenue
- Research and development
Let’s look into what those benefits really mean for your business:
Through their ongoing communication with customers, customer success managers have the knowledge and ability to have data-driven conversations with customers that can lead to increased renewals, upsales and/or cross-sales of additional products/services that are in line with business goals.
In the case of upselling or cross-selling a new product or product upgrades, for instance, your CSM could help identify existing customers that have a need for a possible new product or feature and be able to cite possible benefits and limitations based on their in-depth knowledge of your customer’s needs and wants.
Client success managers increase customer retention and help reduce customer turn-over by ensuring optimal product/service usage. By addressing issues as they arise, your CSM can ensure that your customers are effectively onboarded and trained to achieve the goals that were defined during the sales process and obtain their return on investment quickly.
The goal of your CSM is to not only prove their value, but also to prevent buyer’s remorse. Armed with in-depth knowledge of your customers, your CSM will be able to provide each customer with a personalized onboarding experience tailored to their goals and needs.
By addressing any looming fears, questions and concerns your CSM will be able to put together a roadmap, establish trust and set realistic expectations with the client. In the end, these factors, combined with consistent communication, will help convince your client that they made the right buying decision and ensure a happy, long-term relationship moving forward.
This concept of preserving business and addressing issues proactively becomes especially important during times of recession.
Your CSM’s communications with clients during these times will help provide an understanding of where challenges lie and help your company make proactive adjustments to your product, service and pricing to accommodate clients. This kind of troubleshooting is what entices clients to stay during hard times and continue doing business with you in the long-term.
New sources of revenue
By effectively managing customer relationships, CSMs can help ensure customer referrals and advocacy. Research shows that customers who become brand advocates for your company bring economic value, not only through new business, but also because they tend to spend twice as much as clients that are non-advocates.
Obtaining customer referrals can be easier with the help of your CSM who, based on their close relationship with your customers, can pinpoint those clients that are strong advocates of your business.
From there, CSMs can open the door to conversations with these customers about incentive-based referral business. The leads provided to your CSM can be handed off to your sales and marketing department where they become part of the sales funnel.
Research and development
The CSM is the ideal person to start a dialog with preferred customers about testing products/features and providing feedback in exchange for a discount or other incentive. This valuable feedback, in turn, will help your product development team perfect their work.
Your CSMs will know about the struggles of the customers and where they see limitations in your product. They can then start a dialog with the customers in question to potentially beta test new features and products. Giving customers the chance to be involved in beta testing is a reward for their loyalty and helps your product designers perfect their part of the process, as it gives them access to insights from people who know the product and have a line of communication through the CSM.
“Have you asked yourself, who is the client behind the data? You might know the company name of the biggest buyer, but who is the contact person on their side?” says Miguel Melo, Technical Account Manager at Pipedrive. “This revenue—and product pains, victories, all their history with your company—all of it is owned by a Customer Success Manager.
“Your customer will need to know what heights they can achieve when they are using your product. Besides this, Customer Success Managers will identify new revenue opportunities with old clients. If you want someone to tie all the metrics with real people and invest in human relationships, you will need a Customer Success Manager.”