Driving ROI and customer accountability for success

In an environment where the stakes for maintaining and expanding business relationships are higher than ever, being proactive and focused on return on investment is essential.

I'm Emily Fetherston, a Customer Success Manager at G2, and my experience has revolved around evolving customer success from a supportive role to a strategic powerhouse.

In this article, I'll share

An overview of the evolution of customer success services, along with tried and true steps for achieving success.
Tactics for effectively implementing these strategies.

So, let's dive in and explore these concepts together.

The evolution of customer success in the industry

Customer success is an incredibly dynamic and exciting field, constantly evolving and striving to deepen connections with customers while driving value. There was a time when customer success was considered a “nice-to-have” for organizations. Now, it has transformed into a critical role that significantly impacts the business's bottom line. This shift represents a powerful change in the industry, and I'm thrilled to show you how.

In the past, the customer success role primarily served to bridge the gap between the customer and the sales executive who sealed the deal. It ensured a smooth line of communication and support, focusing heavily on relationship-building. It might sound straightforward, but this approach was the backbone of our operations.

Our responsibility encompassed retention and identifying opportunities for expansion, which, to a large extent, remains true today. However, there's a shift in how we approach these responsibilities now.

In the past, our success metrics were largely based on adoption metrics and retroactive data reporting. When I say “retroactive,” I mean applying insights to events or trends that have already occurred.

One significant aspect of our role was tracking renewals, which primarily hinged on something known as health scores versus time. This approach has evolved, and I'm excited to share with you how these changes have redefined our role and strategies.

Redefining the customer success role

The future of customer success is something that genuinely excites me. We've moved beyond being just a line of communication; we've become the quarterbacks of customer relationships. Our role has evolved significantly, and I want to share with you this transformative journey.

As the primary point of contact, our responsibilities now extend beyond mere communication. We delegate, challenge our customers, and engage in resourceful knowledge sharing. This shift from a purely relationship-focused approach to an ROI focused strategy marks a significant change in our industry.

Our goal is to proactively steer the relationship, ensuring it stays on course. This requires us to do our homework, understanding not only the immediate goals of our day-to-day contacts but also the broader company focuses and shifts. It's about seeing the bigger picture and aligning our efforts with it.

A new approach to tracking renewals

The approach to tracking renewals has transformed. We now utilize a mutual success plan, which allows us to clearly identify when a customer is veering off course, falling behind, or successfully meeting their goals.

And here's my favorite part: asking the hard questions. We need to start confronting these crucial issues head-on. For instance, during EBRs (Executive Business Reviews) or business reviews, I recommend asking customers directly about their renewal intentions – why they plan to renew or why not. This straightforward approach can yield profound insights and help us tailor our strategies more effectively.

Navigating the new economic climate

The current economic climate presents new challenges in buying and retaining business. It's a reality that demands our attention and strategic action. I want to share with you some key thoughts that always stay at the forefront of my mind during customer interactions.

Nowadays, every purchase a company makes is scrutinized. It's not enough to convince just our main point of contact about the value of our product; we need to persuade their managers and even their managers' managers. Why? Because companies are increasingly cautious about investing in software unless it addresses a specific need or problem.

With this heightened scrutiny, the expectation from our product or solution to effect a drastic change in a business has grown. This translates into a larger responsibility for us in customer success. We must address this through a more strategic focus.

Here's a hard-hitting truth: a good relationship does not automatically guarantee a renewal. You could be on excellent terms with your contact, engaging in regular catch-ups over coffee. However, if budget cuts are on the table and higher-ups don't see the value in what we offer, there's a high risk of being cut. It's essential to understand who and what we need to communicate.

The key lies in showcasing the value and impact we bring to an organization, which can be achieved through multithreading and highlighting goals in the mutual success plan.

Pipeline and efficiency have never been more critical across businesses. Ultimately, a company's focus boils down to these two aspects. If we can't demonstrate value in these areas, the likelihood of renewal diminishes significantly.

Tackling challenges with a winning formula

After discussing the challenges, I'm eager to share some effective strategies we've implemented to overcome them. These are the steps to success that my team and I consistently apply across all our customers. They have been instrumental in driving value, retaining, and expanding our business.

One key lesson I've learned is the significance of asking for what you need in a partnership. If we're the only ones providing data and insights, that's not a relationship; it's a vendor-client dynamic. We need to keep our customers accountable, whether it’s for data, answers, or introductions.

Multithreading is crucial. Imagine this: you email a customer, but their email bounces and there's an upcoming renewal. Panic sets in, right? To avoid such situations, our team ensures we have at least five contacts per account. This approach not only aids in times of crisis but also provides additional context for business expansion and growth.

Establishing and monitoring SMART goals

SMART goals are the cornerstone of our mutual success plan. They provide a framework that helps in regular monitoring and discussion during cadence calls. This is essential for keeping track of how well our customers are progressing.

Every customer and every contract should have a tailored success plan incorporating SMART goals. Understanding what's at stake for the organization if they miss their goals is also crucial. This insight helps in aligning our efforts with their objectives.

Automation

Automation is a game-changer. For instance, I use Google Alerts for each of my customers to stay informed about any significant developments like layoffs, acquisitions, or major press releases. Also, leveraging AI tools like ChatGPT to summarize earnings transcripts saves time and provides valuable insights for discussions in business reviews.

Recently, I've started implementing predefined deadlines. At the kickoff call, we spend a few minutes on housekeeping and schedule the mid-year business review and the renewal call. This proactive approach saves time and effort in coordinating these critical meetings.

Having gone through our checklist, it's time to delve into how we can put these actions into practice. A fundamental aspect of this is data sharing.

Data sharing isn’t just critical; it's imperative. It's vital for both us and our customers to share data openly, whether it's about LinkedIn campaign metrics or transparency in review processes. At G2, for example, we emphasize sharing review data. Eliminating any gatekeeping in data sharing sets a standard for mutual benefit.

If you're not initiating this data sharing from the outset, such as during the kickoff call, you're already a step behind. We need to move from a retroactive to a proactive approach. As I've mentioned before, applying insights to past actions isn't sufficient.

Reporting on what has already happened doesn't help solve current challenges. In a scrutinized environment, efficiency is key, and meeting customers where they are with insightful data is crucial for success.

Let me give you a quick example from my experience at G2. We have a wealth of review data and track comprehensive company-level data on our site, which includes user profiles, research activities, and engagement duration. This information is incredibly valuable for our customers, who often use it for ABM strategies or LinkedIn campaigns.

During kickoff calls, I make it a point to ask customers to grant me access to their LinkedIn campaign manager. This allows me to understand their current strategies and suggest optimizations even before our first detailed discussion. It's about being proactive and informed.

We regularly cross-reference data points with other customers at G2 to uncover trends and potential turns. Sharing what works well for one customer with another, or suggesting optimizations based on collective insights, is part of our daily practice. This collaborative approach helps in identifying areas of focus and optimization.

It's also essential to celebrate wins. Whether a customer reaches a milestone or benchmark, acknowledging these successes not only boosts morale but also plays a vital role in renewal conversations. It's a testament to the value we bring and the goals we help achieve.

Mastering the kickoff call

As we delve into the art of conducting effective kickoff calls, it’s crucial to understand the elements that should be included. These calls are typically with new customers or during a transition in the books of business. They are also vital when I transition a customer to my counsel to establish a clear understanding from the start.

One of the first steps in a kickoff call is to reaffirm why the customer chose your product or service. It's not about asking them why they bought it – you should already know this, ideally documented in the sales contract. By acknowledging their reasons, you demonstrate that you're listening and committed to a seamless transition, whether from sales to customer success or during other transitions.

Setting SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals is another critical step. For each customer, I aim to establish at least three SMART goals. These could range from understanding goals across different industries to specific objectives for my sole point of contact. It’s essential to be clear about how these goals are constructed.

For example, a common goal among my G2 customers is to become a leader in their category. But it's crucial to break this down into actionable steps, like aiming to be in the leader quadrant by the end of the quarter through bi-weekly review campaigns, with a target of 50 reviews. This approach is not only clearer but also easier to track.

I typically present the mutual success plan as a slide during the kickoff call, which we can fill in together in real time. This plan outlines company objectives, what’s imperative to fix or change, the SMART goals for achieving these, and the check-in frequency.

Another aspect I've found impactful is understanding budget planning. Knowing when a customer plans for the new year can be crucial, especially if you're looking to expand your business or add value before their budget planning session.

Finally, make sure to schedule key calls and agree on timelines before ending the kickoff call. Setting up important reviews or meetings at the last minute can be challenging, so it’s best to get these scheduled well in advance.

Understanding what will justify the renewal is also important. Ask the hard questions about the terms and conditions that will influence their decision to renew or not. Sometimes the answers are straightforward, but often they require a deeper understanding.

Maximizing success with SMART goals and mutual success plans

In every one of my kickoff calls, cadence calls, business reviews, and particularly those crucial renewal calls, I consistently utilize a specific slide format that focuses on SMART goals and mutual success plans.

The first part of this slide is dedicated to objectives. These are the overarching company goals like customer experience, revenue growth, pipeline, and market relevance. While these objectives might seem broad or “fluffy,” they provide a crucial context for more specific goals and recommended KPIs, particularly those related to G2.

The next element is reporting: how often do we check in on these goals? It's crucial to clarify what data is needed and who is responsible for providing it. This clarity is established during the call to ensure everyone is on the same page.

I also use another slide as a planning template. This comes towards the end of my presentation, and it's where I outline the steps of our engagement. It includes the key objectives at kickoff, the schedule for ongoing cadence calls, and the alignment calls, such as the mid-year performance review.

At the mid-year mark, it's vital to gauge whether they are likely to renew and to identify any issues with the product. This timing allows us to address issues well before the renewal stage. The renewal call, typically around the nine-month mark, is where we discuss potential improvements, contract terms, and plans for expansion if applicable.

On the renewal call, I also schedule the kickoff call for the new contract. This is where the real efficiency comes in. I keep the description and customer name, list the participants, and then we all open our calendars to schedule these meetings on the spot. This practice saves a lot of time and ensures that key stakeholders like CMOs or directors are committed to these meetings.

Mastering the EBR at the six-month mark

Reflecting on the EBR process, especially at that critical six-month mark, it’s important to have a strategy for evaluating the likelihood of renewal. It might seem daunting to ask directly about renewal, but it's crucial for effective customer success management.

In the EBR, I incorporate specific questions that serve as validation tools. To avoid catching the customer off-guard, I include these questions in the agenda beforehand. It’s essential to remember that these questions, while not always comfortable, are fundamental to understanding the health of the partnership.

Key questions to include:

Evaluating the partnership: "What do you feel has been working well in our partnership?" This question helps gauge the customer's satisfaction and the effectiveness of our strategies.
Seeking improvement: "What would you like to see more of, or want to see differently going forward?" This inquiry opens the door for constructive feedback and potential areas of improvement.
Goal alignment: "Our goal is X in the coming months. How can we achieve this together?" This is particularly relevant if they’re not meeting the goals tracked in the mutual success plan. It’s a collaborative approach to problem-solving.
Directly addressing renewal: "If your contract was up today, would you renew?" This direct question is crucial at the six-month mark to assess the likelihood of contract renewal.

Asking these questions at the six-month mark is not just a formality; it's a strategic move. It helps in understanding the customer's perspective, aligning goals, addressing any concerns, and ultimately paving the way for a smooth renewal process.

This article is based on a presentation given by Emily at our Customer Success Festival in Boston 2023.

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