The Customer Success Evolution
Customer management software built pre-2000s transformed into Customer Relationship Management. CRM uses data analysis; it makes use of the customers’ history with a company to understand their level of satisfaction. It mainly focuses on improving business relationships with customers, specifically on customer retention and ultimately driving sales growth. The primary goal of customer relationship management systems is to integrate and automate sales, marketing, and customer support.
A SaaS customer success manager should know about the product inside out. This keeps a CSM well placed in helping customers with the right tool for their pain points. Along with that CSMs should possess technical skills in order to direct new customers to adopt the product and adjust the tools to their requirements. When trying to understand the thought around CSM vs. CRM, we understand CSM as the customer facing professionals who help customers attain their goals. Whereas, CRM is a strategy for creating value for both the customers and the company over a longer period of time. The key to retention is providing an extremely good SaaS experience. So, companies make use of customer relationship management software that manages a company’s interaction with current and potential customers. Through data analysis customer’s history is analyzed in order to improve business relationships, customer retention and to increase growth.
In 2010, SaaS industry started growing rapidly leading to the creation of metrics like retention rate and ‘upsell quotas’. SaaS companies realized that they could not simply transplant the same business model as on-premise products. Switching offerings became far easier under the subscription model due to low required investment. Salesforce, Microsoft 360, Google Apps, Slack, Zendesk and so on are a few SaaS examples. Sending emails is an effective way to boost conversions. It helps customers who are evaluating multiple tools before picking new software. Your SaaS onboarding emails have to highlight why your product is great at solving their problems, this provides your product a stronger base compared to your competitors.
The primary concern of SaaS industry is retention, so companies look for a solution that would help them retain customers and manage relationship with each customer to ensure maximum value is delivered. Thus, Customer success was born. Cs has now become the most effective method for retention.