Customer Health Scores? You’re Probably Doing It Wrong

  A lot of work has been done in recent years to develop customer health scores.  In B2B SaaS, even more work has been done to automate the process. Interestingly, the underlying approach that most companies use is flawed.   We can draw a lot of lessons from sales forecasting in order to get health … Continue reading Customer Health Scores? You’re Probably Doing It Wrong

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Compensation Leads to Customer Success in 2017

It’s the start of the year, when companies review their annual goals and compensation plans. Typically, customer retention and growth is a top priority.   Do you have the right incentives in place to meet your 2017 customer retention goals?  There are two approaches to answering this question: bottoms-up and top-down.  Bottoms-up: Start with owners … Continue reading Compensation Leads to Customer Success in 2017

Leading and Lagging Indicators of Customer Success

There was a recent discussion over on the Customer Success LinkedIn group about defining leading and lagging indicators for customer success. Here’s my take on which is which, through the prism of churn risk. Indicators or outcome measures? Before we get to indicators, let’s start with defining the outcome measures.  These are the standard business … Continue reading Leading and Lagging Indicators of Customer Success

Predicting Customer Health: Look for Asymmetries

If you’re looking to measure customer health, start with understanding how important you are to each other.  Where there's asymmetry in the relationship, you’re likely facing future risk. Consider this matrix that describes the criticality of your customer relationships. How critical is a customer to you? How critical are you to them? What does “critical” … Continue reading Predicting Customer Health: Look for Asymmetries

Sponsor Loss is a Weak Excuse for Churn

Ask a B2B customer success leader how they track their reasons for churn, and they’ll generally have 4-8 reason codes. “Sponsor loss” is almost always one of them. But is sponsor loss really a valid reason? A tale of 2 scenarios Imagine that Sally is the newly hired manager of a team that subscribes to … Continue reading Sponsor Loss is a Weak Excuse for Churn

Get Efficient or Get Fired? 3 Strategies to Streamline Your Customer Success Team

“If you’re not getting more efficient every month, you should be fired!" said a Customer Success leader at a recent networking dinner.  He went on to assert that a Customer Success team should not grow in proportion to your customer base or revenue. With a looming industry slowdown, should we be following his advice? This … Continue reading Get Efficient or Get Fired? 3 Strategies to Streamline Your Customer Success Team