A clear and considered customer segmentation model is a key foundational piece for any customer success team to help you:
• Align management and individual contributors
• Develop a coherent churn prevention strategy
• Execute effective up-sell outreach
• Maintain balanced CSM account portfolios
• Launch highly targeted customer marketing campaigns
• Nurture advocates and reference accounts
Counting logins is a solid first step to connect product usage to customer churn risk and up-sell potential. The problem is, setting judgmental rules for how many logins constitute good and bad customer health shrouds other important behavior signals, risks miscalculating customer health, and can introduce big dollops of complexity and guesswork into your customer analysis.
I’m bored. I’m reading a vendor newsletter that’s a mush of content that does little more than list out the vendor’s product and company news. Has customer marketing missed the content marketing revolution their demand generation brethren ushered in?
Ah churn rate. It’s such a simple metric on the surface, yet fiendishly fiddly upon closer examination. The challenge is different business models demand different approaches to measuring churn. With that in mind, we’ve detailed several churn rate models below.
At its core, calculating churn rate is the number of customers who cancel during a given period (month, quarter, year) divided by total customers at the start of the period. While revenue churn is the more important metric, you’ll want to look at customer (count) churn as well to get the complete picture, and give your team some perspective when the occasional high-revenue customer churns.
I get asked this question often – what’s the difference between customer success and customer support? More and more, the answer is that support is simply a group within customer success that efficiently handles “front-line” questions.
Both groups – customer success or account managers and traditional customer support – are tasked with ensuring a customer’s success and happiness with your product. As such, why wouldn’t they be part of the same organization?