Imagine securing a new client who seems like the perfect fit for your product or service. The contract is signed, the initial transaction is completed, and everything appears promising. But as weeks turn into months, the client’s engagement dwindles. They barely use the product, seldom reach out for support, and renewal seems unlikely. What went wrong?
This all-too-common scenario underscores a fundamental mistake many companies make: viewing customer interactions as mere transactions rather than the beginning of a meaningful relationship. In a world where customer loyalty is hard-won and easily lost, transforming one-time sales into long-term partnerships is crucial for sustained success.
Enter the concept of Appropriate Experience (AX). Beyond the initial sale, AX is about delivering a personalized journey that aligns with each customer’s unique context, needs, and goals. It’s the difference between a customer who feels like just another number and one who sees your company as an indispensable partner in their success.
In this blog post, we’ll explore how shifting from transactional thinking to relationship-building through AX can unlock your customers’ full potential. We’ll delve into what AX truly means, how customer expectations are influenced by their buying journey, and why aligning your engagement strategies with the customer’s broader context—not just their initial purchase size—is essential. Whether you’re a Customer Success Manager aiming to deepen client relationships or a business leader looking to drive growth, understanding and implementing AX could be the game-changer you’ve been searching for.
Defining Appropriate Experience (AX)
At its core, Appropriate Experience (AX) is about more than just providing value—it’s about delivering that value in a way that resonates with each customer’s unique circumstances. AX personalizes the customer journey, ensuring that every interaction aligns with their goals, preferences, and operational realities.
AX is a crucial component of the Desired Outcome, which combines the customer’s Goal (their objective within a specific timeframe) and the Appropriate Experience (how they should be treated along the way). By focusing on AX, you ensure that customers feel supported, understood, and guided—not just in how they use your product, but in how they experience the journey toward their goals.
For example:
- A 5-user contract acquired through a self-service onboarding process might require minimal direct engagement. These customers may prefer autonomy and have straightforward needs that don’t necessitate intensive support.
- Conversely, a 50-user enterprise customer with significant growth potential may need more strategic guidance, personalized support, and frequent check-ins to navigate complex challenges and maximize value from your product.
By tailoring the experience to match each customer’s specific context, you enhance their satisfaction and increase the likelihood of long-term success and loyalty.
The Influence of Customer Expectations Based on What They Pay
One of the more nuanced aspects of AX is recognizing that while customers’ expectations are often influenced by what they pay and how they enter into a relationship with your business, appropriate experience shouldn’t be strictly tied to transactional value.
Purchase Size Affects Expectations, But Not Necessarily Appropriate Experience
Customers’ initial purchase sizes and buying journeys—whether through self-service platforms or direct interactions with sales teams—can shape their expectations:
- Self-Service Purchases: A customer who buys a small number of licenses online may anticipate a hands-off relationship, valuing convenience and autonomy.
- Sales-Assisted Purchases: A customer who engages with a salesperson for a larger purchase might expect a higher level of personalized support and ongoing engagement.
However, these expectations don’t always align with what the customer actually needs to succeed. Appropriate Experience is about meeting those strategic needs, which may not correlate directly with the initial transaction size.
Appropriate Experience Reflects Customer Context, Not Transactional Value
Consider a company with a 25-person marketing team that purchases 5 licenses through a self-service model. Their initial spend is small, and they might expect minimal engagement. But their broader context suggests significant growth potential and strategic importance.
Despite the modest initial transaction, the appropriate experience for this customer could involve:
- Deeper Engagement: Understanding their long-term goals and how your product can scale with them.
- Strategic Guidance: Offering insights and recommendations that align with their broader marketing objectives.
- Proactive Support: Anticipating challenges they may face as they expand usage and providing solutions ahead of time.
By focusing on their context rather than their initial purchase size, you position your company as a valuable partner invested in their success.
AX-Based Segmentation: Aligning Engagement with Customer Needs
Traditional customer segmentation often relies on arbitrary factors like company size, industry, or revenue. While these factors provide some insights, they don’t capture the full picture of what each customer needs to succeed.
AX-based segmentation focuses on:
- Customer Journey Stage: Where is the customer in their adoption lifecycle? New users may need onboarding support, while long-term users might benefit from optimization strategies.
- Goals and Objectives: What are the customer’s specific goals, and how can you tailor your engagement to help achieve them?
- Product Usage: How is the customer utilizing your product? Are there features they’re not leveraging that could provide additional value?
By adapting your approach based on these factors, you ensure that engagement is both proactive and personalized. This fluid strategy allows you to evolve your support as the customer’s needs change, fostering a relationship built on trust and mutual success.
Avoiding the Transactional Trap
One of the biggest pitfalls in Customer Success is the Transactional Trap—assuming that the size of the initial purchase should dictate the level of engagement and support.
Why This Approach Falls Short:
- Overlooks Potential: Focusing solely on initial spend may cause you to miss opportunities for expansion with customers who have significant growth potential.
- Underserves Strategic Customers: Small initial transactions don’t always equate to small needs. Some customers may start small to test the waters but require more comprehensive support to fully realize the value of your product.
- Damages Relationships: Failing to provide the appropriate experience can lead to dissatisfaction, churn, and negative word-of-mouth.
By avoiding the transactional trap and instead providing an experience aligned with the customer’s broader context, you enhance their likelihood of success and open doors for future growth.
Balancing Customer Expectations and Appropriate Experience
Understanding the difference between Customer Expectations and Appropriate Experience is key to delivering exceptional customer success.
- Customer Expectations are influenced by their buying journey and initial transaction size. It’s important to acknowledge these expectations but not be confined by them.
- Appropriate Experience is determined by the customer’s actual needs, goals, and potential within their broader business context.
Strategies to Align the Two:
- Open Communication: Engage in meaningful dialogues with your customers to understand their aspirations and clarify how you can support them beyond their initial expectations.
- Educate and Inform: Help customers see the value of a more tailored experience by highlighting how it aligns with their strategic objectives.
- Flexible Engagement Models: Develop scalable support options that can adapt to different customer contexts without being strictly tied to purchase size.
By balancing expectations with appropriate experience, you not only meet customers where they are but also guide them toward where they want to be.
Conclusion
The journey from transactions to relationships is transformative—not just for your customers, but for your business as a whole. By embracing Appropriate Experience (AX), you move beyond treating customers as mere buyers and start engaging with them as long-term partners.
Focusing on AX means:
- Avoiding the transactional trap and recognizing the full potential of every customer, regardless of their initial spend.
- Building stronger relationships by aligning your support with what customers actually need to achieve success.
- Unlocking expansion opportunities by positioning your company as a proactive partner invested in their long-term goals.
In a competitive marketplace, the businesses that thrive are those that cultivate meaningful relationships with their customers. By shifting your focus from transactions to relationships through AX, you’re not just meeting customer expectations—you’re exceeding them, fostering loyalty, and driving sustained growth for both your customers and your business.
About Lincoln Murphy