Why is CS so neglected?

View profile for Eddie Reynolds

CEO | GTM Strategy & Ops for B2B SaaS CROs

Why is CS so neglected? Customers are the easiest prospects And yet we don’t have a process for growth Why is that? When funding was flooding in, the focus in so many companies was all on new business. This funding flowed into SDR hires, sequencing tools, marketing budgets and lead generation programs. As this happened, we saw CAC reach often unsustainable levels and it left little budget for Customer Success. More importantly, it wasn’t a top priority for leadership. The process to identify unhealthy accounts and get them healthy and to retain and grow healthy accounts was often missing. Customer Success still rarely falls under the CRO, as if to say that retaining and growing existing customers isn’t part of the revenue engine. I’m seeing it more and more but we still have a long way to go. We’re in desperate need of a reset. There is no better opportunity than to retain and grow an existing customer and it deserves the same investment, resources, strategy, process, data and tools that new customer acquisition has been getting the last 10-20 years. Why do you think so many companies are still dragging their feet here? 🤔

I used to be a Customer Support Sales Manager, and it always amazed me how people didn’t treat me like I was in Sales, but “Customer Service” instead, making their perception of my value significantly lower. In order for that value metric to change, the mindset has to first, and until companies do some major studies on how many clients (translation: revenue) they are LOSING - and simply for failing to do basic follow up tasks like ask how things are going and what they can do to improve the experience - it will be hard to pivot the ship. It’s part awareness. Part denial. Part keeping the status quo (if you keep throwing massive money to bring in new clients, all your problems will be magically solved because your “numbers” for “new” clients keep going up each year, and isn’t that what all the upper managers want to see anyway?). Isn’t there some general rule of thumb in the marketing world that says it costs 7x more money to acquire a new client than it does to keep one? Why do we have a “cheaper to keep her” mentality when it comes to marriages but we don’t have the same when it comes to business? (I’m being facetious here…don’t @ me…lol) I agree. We need a reset. Anyone game to start a revolution with me? 😆

Do you think existing customers are taken for granted?

Rebecca Myrick

Channel Executive | Chief of Staff | Strategy and Operations Leadership | Driving Scale & Growth | Mentor & Coach | Board Advisor

9mo

My thoughts on this is most companies don’t treat customer success as a revenue engine. Most of the clients I have been working with also didn’t have marketing doing anything with “expansion” it’s all about new logo, so CS gets little to no support. When they ask me how they can grow their pipeline, I remind them part of the answer is staring you in the face, your current customer base! Whether that’s expanding their footprint, having a great referral program, or having an early adopters program. I have seen these programs used to drive both expansion and net new leads if there is real value to the current customer. CS needs to be part of the core GTM conversation not an after thought!

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Alex Zlotko

CEO @ Forecastio | Unreliable forecasts and performance gaps cost you revenue

10mo

I think this is because many companies still don't understand that Customer Success is a revenue-generating engine. Customer Success is indeed a revenue function. Making customers happy and building strong relationships always correlates with CLTV, as well as the volume of upselling and cross-selling. I also wrote today about Customer Success and whether it is possible to set sales quotas for CSMs.

Chris Logan

Revenue Operations Executive | Former Sales Leader | Planning & Forecasting Expert | Cross-functional GTM Leader | Highly Data-Driven & Analytical

9mo

In my experience, it started because many CROs came from the "sales lineage". It was natural for them to value new logo hunters vs current client expansion...it was just what they knew. When I started in Sales Ops 10 years ago, the budget was oriented towards New Business & many orgs uncertain of how to leverage CS began using the headcount as a catch-all of support, sales admin, and retention. I've seen a shift in the last year where CS is reorienting into a growth engine. It seems to coincide with CROs becoming more GTM leaders & RevOps getting CEO & CFO visibility where we can demonstrate the top & bottom-line benefits of CS teams. Agreed, a full reset is needed, but there are some early adopters leading the charge. As a former CS leader measured on NRR, I'm excited to see companies begin to reevaluate the impact that a "reset" (growth-oriented) CS team can have on the clients they support & organization they work for.

Will Sullivan

Merger Integration partner for the office of the CRO

10mo

CROs are allowing it happen. Why would a CRO accept a position that doesn’t include customer success? Conversely, why would a CEO and HR Lead offer a CRO position that doesn’t include customer success?

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Janis Zech

CEO, Weflow | Host, RevOps Lab Podcast | Revenue Intelligence powered by AI | 3x Founder, 2x Exit

9mo

For a long-time, CS was rebranded high-quality B2B customer support. I love the idea of making CS more strategic by enabling them to source CS-qualified opportunities. They are best positioned to do so. Additionally, it makes perfect sense to manage expansion and renewal opps as in opportunity pipelines, report on win rates, conversion rates, expansion cycle length, and also forecast those pipeline so you know what you can expect from your existing accounts. Obviously, the renewal vs. expansion motion is very different, but that doesn't change the argument IMO. And ofc, this needs to roll-into someone who owns revenue end-to-end (from top-of-funnel, to renewals). I honestly don't know why companies don't take this more serious. I think it's changing, but far too slow IMO. Or?

Andrew Long

SaaS Problem Solver

9mo

Agree. Often support and success are thought of as cost centres rather critical value adds.

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Lauren M.

Director RevOps @ Templafy | GTM Systems & Operations

9mo
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Rory Laitila

Fractional CRO | CEO @ SalesInsights.io

10mo

I like to add an 'Existing Customer' as a lead source / channel. This emphasizes to the sales function that existing customers are a source of deals. It typically will be the highest conversion rate channel. The downside to Existing Customers, and why I think people focus on other channels, is that it is diminishing returns from a pipeline growth perspective. The numerator (existing customer pool) feels more fixed. As you "sell through" this pool, the deal flow that can come from it diminishes (until new customers are added on top). Other channels feel unbounded and linear scaling. For example outbound can theoretically scale indefinitely by duplicating reps. Objectively that's not true, but I think it feels true to many, especially if the pool of target clients is large.

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