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Bringing the value of customer success understanding to your business

Software and service businesses have undergone a fundamental shift in focus. The move to the ‘software as a service’ model has forced business leaders think hard about existing customers.  And this means a change in processes, capabilities, incentives and mindset. Now, the focus is on developing and demonstrating value over a customer’s lifetime, building relationships and encouraging not only renewal but the up- and cross-selling of subscriptions. In short, the focus is on ‘customer success’.

We work with executive and sales teams across our portfolio to encourage ‘customer success’ thinking. From using detailed analytics to understand the causes of customer loss, through to creating processes to monitor customer health, taking proactive action to manage both high-risk and healthy customers, as well as addressing the root causes of existing customer issues, we provide hands-on support and genuine expertise.
Bringing the value of customer success understanding to your business

Understanding why customers leave

Citation provides professional support to over 16,000 clients, across a range of specialist areas, including HR and employment law, health & safety and ISO accreditation.

The problem was that Citation’s management lacked an understanding of customers, across their areas of work.  Large, disparate financial and operational datasets, across different departments and business groups meant that it was hard to see what was causing customers to leave or reduce services and, as a result, take steps to identify those at risk and to prevent it.

We worked in partnership with a number of departments at Citation to build a database, incorporating data from a range of financial and operational systems. It provided information on every past and present customer, as well as analysis (split down by customer sector and size, location, cohort, product holding, service usage, Net Promoter Score and the quality of new customer ‘onboarding’) that drew together a clearer understanding of which customers left the business and why.

This analysis allowed management to identify at-risk customers which, in turn allowed them to set out strategies for improving retention, such as redesign of the ‘onboarding’ process and actions to drive service usage.

Introducing health-scoring to reduce customer loss

Lumesse works with medium and large businesses, proving is strategic HR software for talent acquisition and talent management.

In reaction to high customer loss as a result of perceived quality issues with some products, management set up a customer success team, to manage customer-related issues.

But there was scope for improvement, and that’s where we came in. Operators tended to take on a troubleshooting role, focusing on the customers that ‘shouted the loudest’.

To address this, we worked in partnership with the customer success team to design and put in place a customer health score, combining data from CRM and product usage logs. This health score was trialled with a small number of Customer Success Managers and tested for correlation with customer loss.

Once this programme had been tested it was rolled out as a monthly log, detailing ‘customers at risk’ for review in monthly meetings. As a result of this work customer success became a fundamental part of Lumesse’s business practices, leading to further developments and improvements over the coming months.

Measuring Success

Having agreed ways to measure your success and business growth are important.  We believe the most successful organisations measure and manage their performance against the following operational metrics:

  • Understanding ARR growth by customer cohort
  • Churn and churn reasons measured by customer segment
  • Customer health score driving proactive engagement
  • Current customer white-space driving up/cross-sell priorities
  • Investments informed by cost of retaining a customer (CRC)
  • Investments informed by cost of expanding a customer (CEC)
  • ARR/customer success FTE of ~$2m

Team Members

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