The Customer Experience (CX) Slays in B2B SaaS
CX is dominating the subscription economy. Even SMB, Mid-Market and Enterprise companies can now switch software vendors with a click of a button. This is what makes the *customer experience* absolutely imperative to thrive long-term.
The experience customers having using your products and engaging with your brand that matters.
As a result, CX is now a key driver of revenue retention in the digital age.
Sales Hacker reported that over 700 new SaaS businesses, across 32 categories, launched in 2017 alone.
This means more options are available today than ever before, and for buyer’s and seller’s, it can be prettay prettay overwhelmingly.
This reality has catapulted CX to the forefront of what it takes to win in the hyper-competitive B2B SaaS markets.
This is not how you want your customers to describe their journey using your product.
Why CX is Important
In 2019, the average B2B company has 9 competitors! That’s up from just 2 in the 2013 SaaS market.
We can thank hyper-competitive rise of digital business transformations for fueling this obsession with the customer experience. (and VC’s and private equity firms)
Having strong CX has gone from a “nice-to-have” to a “must-have” for long-term business success.
Give the customer a reason to leave, and they will.
Don’t give them a reason to stay and they may go find a better experience at a better price point.
The fact of the matter is there’s a flavor for everyone in 2018 and subscription businesses have to adapt and evolve.
It reminds me of the modern day “customer is always right” mentality that dominated the service industry 20 years ago.
If you had to focus on one area in 2018, it should be mastering the Customer Experience…
Existing Customers are a Goldmine
Existing customers are more likely to spend more, extend referrals, provide real-time feedback and participate in case studies for marketing, etc…the list goes on. Check out more on the topic here: where I write about why existing customers are so important to the long-term success of your business.
It’s all about owning the customer lifecycle and creating an optimized user experience.
Do it well and reap the rewards of win-win scenarios all day. Don’t and churn will eat away at your business.
Think of it this way:
It’s not enough to have a ‘sticky’ product anymore.
Here’s what you can do about it
Execute and create a tailor-made Customer Lifecycle Management (CLM) plan for your B2B SaaS company. What is CLM?
- CLM is a process and methodology-based discipline. Completely customer-centric,
- CLM is used to improve the user experience by establishing a cadence, or touch-point schedule, to strategically add value and drive adoption at the right time with the right customer.
- CLM is the underdog strategy of long-term success in B2B SaaS.
- CLM can also help align your Sales and Marketing teams as well as your Sales, Marketing and Customer Success teams.
Think of CLM as a living, breathing, organism within your company.
For it to grow and prosper, it must be a fundamental aspect of your culture.
That means all internal orgs are onboard and bought-in. And as your teams collaborate to deliver delightful journeys for clients, you learn what works and what doesn’t. Behaviors, trends and user feedback are the holy grail.
They feed the CLM ‘engine’. Allow outside-in feedback to act like the code of your CLM algorithm, tailoring the process based off commonalities of your users. In other words, instead of deciding how to segment your customer base, let them determine the appropriate experience (shoutout to Lincoln at Sixteen Ventures.
Not literally, but by using their feedback and experience as your guide for how to group clients into buckets, or groups, that have similar needs, wants, desires or shared benefits using your product.
In the future, CLM will no longer be a by-product of your Customer Success or Inside Sales teams efforts to book business.
The entire company will be focused on achieving (at least) one common goal: an incredible customer experience.
Passionate about this topic?
THE B2B Report // The Churn Sherpa for modern day SaaS Companies