Customer service: why it is important to provide a personalized experience
One of the most common customer service strategies emphasizes calling the customer by name. It is a...
In companies, the figure of the customer success manager is becoming commonplace, one who has the task of improving the customer experience and intercepting their needs. This article will outline what customer success is and how to exploit it. Yet, an evaluation of the period we are experiencing is useful as a starting point.
The pandemic has accelerated the digitization of services, transferring much of the market to the web. Undoubtedly, this has been an advantage for those already operating online, but it has also brought greater competition. What is the result? The markets to be shared have contracted significantly and competition has become fiercer.
Furthermore, the evolution of the average customer must be considered, who is now far more attentive and informed about market offers. Those who surf the web know they can find just about anything, so lengthy searches before purchasing are the norm. In this context, the purchasing experience should be considered, which must provide for the needs of the customer from A to Z.
An excellent marketing team and an excellent sales team are certainly essential to capture customers and increase sales, but are not sufficient in themselves. To optimize marketing strategies, which take into account all aspects of the new online market, the figure of the customer success manager was born. We at We Are Fiber have this and other essential figures in our staff, such as the digital customer care specialist, to provide customers with a unique experience aimed at building loyalty.
An increasing number of companies request specialized outsourcing figures and the results prove us right. In fact, our customers have seen cost cutting and customer satisfaction at 99%.
What is customer success?
Customer success is all about companies pursuing happiness for customers as an objective. More specifically, this term refers to that business methodology that allows the customers to achieve their goals through the use of a product or service.
A close relationship is created between seller and customer that is no longer passive, but active throughout the sales process. Thus, a “win-win” relationship is born, in which both players benefit. The advantages achieved are:
- customer loyalty;
- drop in the churn rate for the company;
- increase in sales;
- possibility for the customer to provide information to receive a personalized product or service.
How to calculate customer success
Revenues represent an important indicator to evaluate if the customer success strategies adopted are bringing the desired results. However, they are not enough on their own and, in this regard, it is necessary to consider 5 fundamental KPIs from which to start:
- churn rate;
- net promoter score;
- customer satisfaction score;
- customer lifetime value;
- net easy score.
Churn rate
In evaluating customer success, the so-called churn rate is of great importance, which indicates the abandonment rate of customers who stop using the services of a company. The churn rate is often used in combination with the revenue churn rate, which takes into account the different economic weight that each customer has.
Losing customers is never pleasant and it is important to identify the reasons to stem this trend as quickly as possible. Of course, a customer who spends an average of 400 to 500 euros every month has a different weight from one who spends 100 euros in a single year. Using these two indicators, you can better understand how to offer a personalized service based on the needs of your customers.
Net promoter score
Another important parameter for evaluating customer satisfaction success is the net promoter score, which determines customer loyalty and therefore the probability that customers will return to spend or speak well of the brand with a friend or an acquaintance. This indicator assumes considerable significance, especially in anticipation of future turnover.
Customer satisfaction score
One of the factors of customer satisfaction success is the so-called customer satisfaction score, closely linked to the net promoter score, which directly asks customers to measure their overall satisfaction based on the services received.
Customer lifetime value
The customer lifetime value is able to quantify the value of a client for the duration of their relationship with a company. From this perspective, it is important to underline that retaining customers is far less expensive than winning new ones. By improving a customer's customer lifetime value, it is simpler to ensure economic growth.
Net easy score
We conclude with the net easy score, which measures how easy it is for a customer to interact with a company and, more specifically, to solve a problem or request specific information.
Now you know all, or almost all, of the secrets to customer success. To find out more, contact us, and together we can determine the right solution for your needs.