Is it in the system? Require IT use at each project approval stage
The other day I was talking with a woman at a large non-profit that is trying to improve their enterprise knowledge management efforts. She said that they are using a CRM system and SharePoint to manage information related to all of their internal projects. The CRM is used to track all of the people involved and track key activities and SharePoint is used for sharing and storing all project specific knowledge content.
The problem, as you would expect, is that very few people were using either tool. Sure, there were some pockets of success, but for the most part each individual or team would just do their own thing. Obviously, this did little to preserve knowledge and make it accessible for future use.
She needed help and asked me what she could do to increase effective use of the systems.
Do you have different approval stages for your business projects?
When we were talking about how they manage their internal projects, she indicated they have various formal project reviews and approvals required for a project to proceed to the next stage. The reviews are primarily to manage quality and were required in order for the project to get funding. But they didn’t actually check to see if internal processes were followed or if people were growing the institutional knowledge of the organization.
Make complete & accurate IT use a condition for project advancement
One of the easiest things you can do to help increase effective IT user adoption is to integrate it into the workflow and approval process of your normal work activities. This can apply to internal projects as well as sales reviews.
To be effective, define very specific, measurable system use requirements that must be met in order to gain approval.
This could be things like requiring all related contacts and accounts (specify required fields) are entered, that all major pre-requisite activities are entered (specify required vs. optional activities), and that any required documents are entered.
Also, make sure that all naming conventions and status fields are correct. This is not just an opportunity to make sure information is entered, it is also an opportunity to maintain the quality of the data.
Include timely system use in individual performance reviews
If you want to encourage regular, timely use of your systems (instead of just ensuring data is entered immediately prior to an internal project review), think about including a quick audit of created dates as part of your project approval process. If an individual did not enter the data within required timeframes -- and thus deprived other people the ability to make use of the data in a timely way -- you can identify them and then take appropriate action.
For example, I know of a sales professional at one organization who made his numbers, but didn’t enter the information in the required timeframes. As a result, he was ineligible for a major sought-after reward, namely attending the President’s Club celebration.There are lots of ways you can encourage (or discourage) effective system use as part of your regular business processes. How can you do it in your organization?
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Watch out, SaaS vendors…your customers have a BS detector!
In the olden days (you know, about a week ago), before the rise of cloud computing, software vendors could use a lot of big words, slick demos, and fancy marketing props to entice people to buy a system. They were selling hope.
Sales are easy. Customer Retention is hard.
And many vendors are feeling the pain. The above video from Adobe does a great job of highlighting the issue. SaaS systems, with low upfront fees and the relatively easy ability to switch to a completely different system, enables customers to learn for themselves what your system can deliver.
Subscription pricing means you need to prove your worth. Everyday.
The impact: every time you have a renewal sales discussion, your customer immediately knows if you are BSing them or not. And they won’t tolerate BS.
Ensure your customers' success if you want to keep them.
What this means is SaaS vendors need to ensure they stop BSing customers and start ensuring their success. Make sure your customer has achieved measurable business value from investing in your system. To do this, evolve your sales, implementation, and customer management processes.
Help customers address the two biggest issues they face – namely, driving and maintaining full, effective user adoption of the system AND realizing the clear, measurable business benefits. If you can’t do this, your only choice is to try to BS your customer.
Good luck with that.
Please share your thoughts and experiences on the Customer Success Practitioners group on LinkedIn.
“We don’t care. We don’t have to.” …uh, yes you do.
Do you remember this Saturday Night Live advertisement skit with Lily Tomlin as a phone company employee?
Customer choice means vendors need to care
Now, just a few years (ok, decades) later, these same phone companies are struggling to reduce customer churn. They are (finally?) realizing that things have changed and the customer now has more power in the relationship. And customers are not afraid to use it.
SaaS vendors need to focus on keeping customers...
Like phone companies, SaaS vendors – or any vendor selling on a subscription basis – realize that reducing churn and keeping customers for as long as possible is essential to their success. Unlike the phone companies of yesteryear, they can’t hold customers hostage and just expect the money to keep rolling in.
…but what do they need to do to reduce churn?
Many organizations recognize the need to retain customers, but they are not sure how.
The secret is simple. If you want to retain customers, make sure they:
1. Are getting value from your product or service, and
2. They enjoy their experience with your organization
If you can do that, you will keep them. As soon as these two things fall short, your customer will leave.
Focus on customer success to reduce churn
Many companies have invested in improving the customer experience and increasing customer satisfaction ratings. Now they to focus on making sure customers are getting full value / benefits realization.
For many organizations, this means creating a Customer Success Management program. Customer success is not account management or even customer service. It is all about helping the customer achieve the measured benefits and ROI that is meaningful to them. It requires different methods, tools, and activities than before.
Do you have a Customer Success Management program? If not, why not? If so, how has it affected your customer churn?
Please share your thoughts and experiences on the Customer Success Practitioners group on LinkedIn.
Differentiated Customer Success Management (CSM) Services
When speaking with Customer Success Management professionals they consistently tell me they provide different CSM services depending on the customer. Even basic customer segmentation has allowed them to prioritize their efforts and adjust their services to meet the specific needs of different customer groups.
Not all customers are equal
While all customers are important, they are not all equal. Some customers are more profitable. Some require more support and take more time. Some customers start small, but with a huge potential lifetime value, whereas others may have limited potential.When developing your CSM program, make sure you understand both the needs and the potential value of your different customers. And then, prioritize accordingly.
Differentiate B2B or B2C
You will need to adjust your Customer Success Management approach to meet the unique needs of B2B and B2C customers.
• B2B customers often have less individual control and discretion when it comes to the systems and tools they use. In addition to individual user habits, you have to navigate a plethora of organizational issues, including internal business processes, incentives, policies, procedures, technical and data quality issues.
• B2C customers tend to have a high degree of individual control and discretion when it comes to using your product or service. You may need to help them develop new habits that involve regular, sustainable use of your system.
Delivering B2B CSM services is more complex than B2C, but the revenue amounts at stake often make it a priority.
Differentiate size & budget
It will take some experimentation to determine the optimal size and budget for your CSM program. The type of CSM services you deliver will influence the number of customer success management staff you need. It will also affect things like the amount of travel (face-to-face) service vs. the amount of remote (web and phone) service.
Many CSM programs start relatively small and then grow as the customer base grows. When you building your CSM program be sure to include plans for how you will add additional capacity as your customer base changes and as their needs – and your software - changes.
Change your methods based on customer need and value
You can help customers be successful with your product or service in many different ways. For some customers, it may make sense to provide services that are largely automated and uniform. For others, especially those with a high potential lifetime customer value, you may need to provide more hands-on, customized CSM services. And, as your customers grow, you may need to adjust the level of service they receive.
Everything You Need for Success
Check out these great resources to help make your Customer Success Management program the best in the industry.