3 levers of customer growth (with Dan Steinman, Chief Evangelist at Gainsight)
Nov 9, 2023
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Dan Steinman, Chief Evangelist at Gainsight, discusses the three levers of customer growth. Topics include celebrating customer revenue, the role of customer success, upselling strategies, and the dynamics between CSMs and account managers.
Customer Success Managers play a crucial role in driving upsells and expansion within an existing customer base.
Collaboration between Customer Success, Sales, and Product teams is crucial to maximize value for customers and drive revenue growth.
Deep dives
The Role of CS in Driving Upsells
Customer Success Managers play a crucial role in driving upsells and expansion within an existing customer base. While they are not salespeople, they need to be sales-savvy and constantly look for opportunities to sell more to customers. This involves engaging in discovery conversations, understanding customer needs, and identifying areas where the product can provide additional value. CSMs should also proactively ask for internal referrals within the customer organization to expand the relationship. To incentivize and recognize their efforts, CSMs can be included in a compensation plan that is tied to net revenue retention and other metrics like customer success-qualified leads, referenceable customers, or testimonials.
Collaboration and Tension between CS, Sales, and Product
A healthy tension and collaboration should exist among Customer Success, Sales, and Product teams. The VP of Customer Success should advocate for customer needs and ensure that the product team addresses those needs. This involves actively providing feedback on product enhancements, performance issues, and customer pain points to improve the product and prevent churn. Similarly, collaboration between Customer Success and Sales is crucial to expand revenue within the customer base. The Customer Success Managers can share insights about customer needs, use cases, and opportunities with the Sales team. Both Customer Success and Sales should be aligned with revenue goals and work together to maximize value for customers.
The Strategic Importance of a Strong VPCS
Having a strong VP of Customer Success (VPCS) is critical to the success and growth of the organization. The VPCS should be disruptive, challenging both the Sales and Product teams to improve and deliver the best customer experience. The VPCS should drive a customer-centric culture within the company and advocate for the voice of the customer. They should monitor net revenue retention closely and ensure that customer success goals are aligned with revenue goals. A strong VPCS builds collaborative relationships and promotes healthy tension between teams to push for continuous improvement and revenue growth.
Driving Product Improvement and Customer Success Collaboration
Customer Success Managers play a key role in driving product improvement. They are on the front lines, understanding customer pain points, gathering feedback, and identifying opportunities for enhancement. CSMs should proactively communicate customer needs and work closely with the product team to deliver improvements that increase customer value and drive retention. The product team should view CSMs as a source of valuable insights and leverage their expertise in shaping the product roadmap. Collaboration between Customer Success and Product results in a product that meets customer expectations, drives customer success, and strengthens the overall customer experience.
