More companies see customer success initiatives as a growth driver versus just a way to reduce churn, according to findings from Gainsight. About 63% of companies indicated their customer success organizations own Net Revenue Retention (NRR) responsibilities.
"Put another way, companies see customer success as a growth driver," Kellie Capote, chief customer officer at Gainsight, told CMSWire.
Investment in Customer Success Operations Brings Opportunities
The Gainsight study also found companies investing in customer success operations (CS Ops) has a direct impact on NRR. Companies that reported investing 10% of revenue into CS Ops also reported the highest NRR across company sizes. The ROI of CS is evident and critical to companies focused on growth, according to Capote.
Further, half of companies reported using basic product analytics metrics to predict churn. "There’s a huge opportunity to evolve from a human-led CS coverage model to a hybrid of human-led and digital-led CS strategies," Capote said. "Through more sophisticated product analytics tools as well as in-app engagements, companies can more predictably drive expansion and adoption."
Only 17% of companies leverage CS in expansion opportunities, a huge missed opportunity for conversion, Capote added. "Expansion opportunities are earned through proactive, measured CS strategies," Capote said. "By incorporating customer success managers in the expansion process, companies can improve their conversion rates and drive revenue."
Related Article: Know What's a Powerful Business Driver? Customer Success
Net Promoter Score Still Staple of CX for Many
Net Promoter Score (NPS) is used by 80% of companies to track customer satisfaction. However, only 37% of companies measure NPS for executive buyers or platform administrators, according to the findings.
“Net Promoter Scores remain a staple for measuring customer satisfaction, which has been true for some time," Capote said. "While NPS will always be important, creating a comprehensive customer health score will be more useful as the responsibilities of CS organizations expand and the opportunities they create grow."
Product Experience, Customer Success Go 'Hand-in-Hand'
Capote said Gainsight officials see the data from the study mirror what they hear from the larger customer success community: product experience and customer success must work hand-in-hand to deliver value to customers and increase NRR.
The use of more advanced technologies, such as increased product analytics and in-app interactions, in conjunction with evaluations of the business value gained, presents an enormous potential for firms to improve retention while simultaneously increasing adoption and growth, she added.
Related Article: Aligning Your Organization Around Customer Success
Inside the Gainsight Survey
Gainsight released the study in collaboration with benchmarking research company RevOps Squared. Gainsight conducted the research to better understand the present status of Customer Success programs, such as what CEOs are concentrating on in 2022, the obstacles they encounter, and how they are expanding their Customer Success operations.
Gainsight and RevOps Squared performed research in November and December 2021 to assess Customer Success organizational structure, customer retention process measures and performance indicators, as well as NPS, Gross Dollar and Net Dollar Retention rates.
Over 350 organizations took part in the study, representing a broad variety of company sizes, yearly contract values, industry categories and geographic regions. Participants comprised executives at all levels of management, including C-level executives, senior vice presidents, vice presidents and directors from both within and outside of the CS department.