A little background: Why does the SaaS world care about customer success?
So ware-as-a-service (SaaS) has changed much about the so ware industry: the way customers access software, the way it is purchased and the way software companies get paid for it. The SaaS model has in fact permanently changed the relationship between so ware vendors and their customers.
Customers purchase software licenses on a subscription basis rather than pay up front. Because SaaS revenues are tied to subscriptions, growth depends on customer retention and license renewals.
Making customers successful by continuously delivering value is key to SaaS success. The subscription model demands that SaaS vendors focus on customer outcomes to ensure success and protect future revenue and growth. The more value a customer receives, the more successful they become and the more likely they are to renew
A bit about me
I was one of the first employees at Eloqua, a marketing automation SaaS company, and was tasked with building a customer success division from the ground up. I remember the day my team was credited with helping the company reach a $1B market cap. It was a great experience—after a lot of hard work and shi ing the way the company viewed the role of customer success.
I wanted to develop a template for organizational growth that was scalable and repeatable. I was also aware that customer success departments did not own a spot on management dashboards and were not accustomed to quantifying their outcomes nor touting their successes. These factors drove most of my decisions and shaped my approach to creating and scaling my customer success team.
Regardless of the size of your company, this model provides practical guidelines for when to implement a customer success solution, hire your first customer success manager (CSM), and offers stage by stage tactics for scaling your customer success team.
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