Customer Churn: A CSM's Nightmare (But not anymore)
Waking up to a termination notice from a customer who was showing no signs of dissatisfaction!
Receiving a sudden escalation email revealing a series of issues!
If these scenarios sound familiar then you are not alone! In any recurring revenue business, customer churn is the biggest pain point and why organizations should invest in customer success capabilities.
There is an abundance of content available discussing various reasons for customer churn. Every CSM is juggling multiple priorities and most likely does not have enough time to proactively act on all customer goals. Learning inside an organization across all different customers between all customer success teams is difficult and often very limited. How many times have you seen customers churning because of a similar set of reasons?
Centralized intelligence, the kind Tesla and others employ: if a single driver in one location encounters an issue, Tesla immediately incorporates a solution then pushes it out to all vehicles in their next update. The learning of why the issue happened, how it could have been avoided, and how to ensure it does not happen again is now baked into the latest update that Tesla rolls out and is available to every other Tesla customer around the globe.
Food for thought: Why can’t the same be applied to Customer Success? There is an opportunity to learn from past experiences and to absorb that learning quickly within the organization.
Imagine CSM’s being equipped with data-driven insights from past and current learnings, backed with reasoning and explainability. Not only can the CSM be made aware well in advance of potential issues by identifying similar patterns but also be powered with ‘WHY’ an issue is happening. Analyzing ongoing and historical data, recognizing patterns, and sending early warning signs in a timely manner can be a game-changer and THE solution to preventing customer churn.
Bonus: Your CS team will have more time at hand to focus on real and meaningful conversations with customers while maximizing productivity.
P.S. Once you build a consistent data driven culture, your customers not only love you and your product but also engage longer leading to higher lifetime value. Higher net promoter score and lower customer churn are direct results of creating Scalable Customer Love.
Your team + Cami = Scalable Customer Love