Customer success has never been more important. By 2020, it’s expected that customer success will become a more key differentiator than product or price. So it has a lot of entrepreneurs wondering if they can build a whole business based on customer success.
The truth is that a customer success platform can be the focal point for your business. We’re going to show you why it can be done.
It’s Harder to Gain Than to Retain
The alternative to running a customer success-based business is to focus on product or price. But the reason why people are changing is because it always costs more to gain a customer than to retain one.
The estimate is that it costs between five and 25 times more to gain a customer than to keep one. You don’t need to look at an example to know that you should work hard to reduce churn rates.
How Do You Gear Your Business Towards Customer Success?
The answer is in gearing everything else towards your customers. Forget about the old adage regarding if you build it they will come. Build something for them.
This means that you need to ask a number of key questions regarding your product/service:
- Does it solve an existing problem?
- How does it help customers in the long-term?
- Are you able to provide the support necessary to keep customers on your side?
That last question is the most important because any customer success strategy must prioritize customer interaction.
A customer success driven business spends much of its time interacting with customers.
Keeping Customers Happy
To build a business based on customer success you need to know as much about your target market as possible. And that includes after you’ve managed to bring them onboard.
To do this you need to use master data management best practices to both secure data and to efficiently use the data you have for analytical purposes.
So how do you keep them happy?
The answer is in listening. Your next product or your next upgrade should be powered by what your customers are telling you. A strong email list goes a long way towards making this happen.
What’s the Biggest Obstacle to Building Your Business in this Way?
Customer churn is important, but it’s just the symptom of the disease. The disease is not giving your customers the outcome they expect.
For example, let’s say you want to change an existing product in some way. Saying that and then wondering how to market it is the wrong approach.
You need to be asking whether the change is what the customer wants and whether it represents an improvement on helping them to reach their desired outcome.
Always think about the desired income.
Last Word – It’s Not Just Possible it’s the Future
Building businesses on customer success is the future. You can’t afford to ignore it. The customer has never been more important and their views should drive your business.
Don’t try to sell to your target market. Collaborate with them.
Has your business looked into customer success?