Why Aligning Sales and Customer Success is Critical

The goal of Customer Success for your company is to get customers to stay longer, buy more, and advocate for you. So it's critical to remember that Customer Success begins at the first interaction with prospects by your sales team, continues across … [Continue reading]

Customer Success and Charging Setup Fees

So, do Setup Fees jibe with Customer Success? Are they mutually exclusive? Can they play well together? Is there a time or place where they're more appropriate? The answer is, of course, yes. And no. Don't worry... I unconfuse it all below. For … [Continue reading]

The Biggest Customer Success Mistake (and How to Avoid it)

Spoiler Alert: The biggest mistake you can make in Customer Success is not putting the customer first - this is CUSTOMER Success. If what you're doing isn't designed around the customer's Desired Outcome, I have no idea what you're doing. You're … [Continue reading]

Determining the Ideal Customer Success Organization Structure

A persistent question in Customer Success Management is what the ideal organizational structure is. A great example of this is this question I received: In a large enterprise platform with a high-revenue customer base, do you see any pros or cons to … [Continue reading]

Customer Success in Two-sided Markets

Customer Success Management is about ensuring customers achieve their ever-evolving Desired Outcome. Regardless of the model - two-sided market, partner model, direct-to-customer, etc. - every entity in the value chain has a Desired Outcome. It's up … [Continue reading]

Customer Success: The Secret to Improving Customer Adoption

Customer Success Management is about ensuring customers achieve their ever-evolving Desired Outcome. It's not about adoption. It's not about the breadth and depth of use of your product. These are big ideas you need to move past if you want to be … [Continue reading]

Customer Success in a B2B2C (Partner / Value Chain) Scenario

Customer Success is defined as our customers achieving their Desired Outcome through their interactions with our company. Think of that definition of Customer Success as your Operating Philosophy. That philosophy can be extended to the greater value … [Continue reading]

Customer Success: How to Monitor Customer Happiness

Customer Success is not about making customers happy. In fact, there are 8 other things Customer Success is not if you're so inclined. But for the sake of this post, just know that we're here to make customers successful, not happy. But how do you … [Continue reading]

Determining the Perfect Number of Customer Segments

In Customer Success, customer segmentation should be logical (take a step back and really think about it) and done from the customer point of view (think: Appropriate Experience segmentation) rather than from an internal-focused view (i.e. ARR, … [Continue reading]

The Difference between Customer Success and Account Management

Customer Success is not Account Management. In fact, there are 9 things Customer Success is not, and Account Management is one of those things. Traditional Account Management is old, outdated, and will hurt your relationship with your customers while … [Continue reading]

The Secret to Defining Customer Success Coverage Models

Customer Success is not Account Management. This means using traditional Account Management ideas will either limit your (and your customer's) success... or will cause you your Customer Success initiative to fail miserably. The traditional method of … [Continue reading]

Lincoln Murphy Customer Success AMA Transcript and Video – May 5, 2017

On Friday May 5, 2017, I did a Customer Success Ask Me Anything (AMA) on Facebook live. It was awesome. The video is embedded below and while there seems to be an audio/video sync issue, the audio is crisp and listening to this will be time … [Continue reading]

The 5 Fatal Flaws of most Customer Journey Maps

Customer Journey maps are a favorite tool of Customer Experience (CX) and Customer Success Management (CSM) professionals around the world. Very often, they are elaborate, colorful maps - some look like movie storyboards or even children's board … [Continue reading]

The Cost of Bad Fit Customers: The $1.2M Churn and Burn to Learn Mistake

Também disponível em Português por Superlógica Do you need to churn and burn customers to learn? A lot of people in startups think so. In fact, a lot of people in companies of all shapes and sizes think so. Think you need to churn and burn through … [Continue reading]

Customer Success Goals: Cohorts, Metrics, and Prioritization

Também disponível em Português por Conpass I asked the VP of Customer Success what her goal was for the Customer Success Management (CSM) organization, and she said, "to ensure customers achieve their Desired Outcome through their interactions with … [Continue reading]

Contents of an Awesome Customer Success Playbook

Customer Success has been clearly defined and what goes into Customer Success Management has been fully documented. But when it comes to certain aspects of Customer Success Management, there are still a few things that remain a bit mysterious to … [Continue reading]

Customer Success: The Definitive Guide 2019

Customer Success is transformative. Whether you have a Software-as-a-Service, subscription or membership business or you sell one-off products or services and simply want to do business with your customer more than once, Customer Success should be … [Continue reading]

Understanding Customer Success Management Compensation Models

What's the best Comp Model for Customer Success Managers (CSM)? How can I create a compensation model that drives the type of behavior we need? What percentage of CSM comp should be variable, and what impact should individual vs. org-level … [Continue reading]

Determining the Number of Accounts per Customer Success Manager

This is otherwise known as, “How to Determine Customer Success Practitioner Coverage Ratios.” Initially, the question was “how many accounts should a Customer Success Manager (CSM) handle?” But people quickly realized that answers like “37 on the low … [Continue reading]

Customer Success-driven Growth: Rapid, Exponential, and Efficient

Doing whatever you can, spending whatever you can spend, to acquire any and all customers - whether they’re a good fit long-term or not - is played out. That's not a valid growth strategy anymore (it never really was). Today, Investors, Boards, … [Continue reading]

Why You Can’t Offset Churn with Upsells

If you lose $1 in revenue through churn - either because a customer cancels their subscription or decides to stay but pays you less because of discounts or downsells - you first need to replace that $1 before you can start to grow. Now, you can … [Continue reading]

9 Things Customer Success is Not

The definition of Customer Success has been clearly laid out. What goes into Customer Success Management has been fully documented. But there's still a chance that you have a misconception or misunderstanding about Customer Success that could keep … [Continue reading]

Customer Success Management: An Executive Overview

Customer Success is when your customers achieve their Desired Outcome through their Interactions with your company. The actual process of moving customers toward their ever-evolving Desired Outcome is called Customer Success Management. It's … [Continue reading]

The 8 Elements of Customer Success Management

Customer Success is when your customers achieve their Desired Outcome through their Interactions with your Company. To actually ensure your customers achieve their Desired Outcome - or what they need to achieve, the way they need to achieve it - and … [Continue reading]

Logical Customer Segmentation: The Key to Scaling Customer Success

Customers that pay more need more human interaction, right? Customers that pay less don't deserve as much human interaction, right? Customers that we give more human interaction should pay more, right? Segmenting customers based on how much they pay … [Continue reading]

Orchestrating Sales and Customer Success Alignment

If you aren't familiar with the concept of Customer Success yet, it's when your customers achieve their Desired Outcome (what they need to achieve, the way they need to achieve it) through their interactions with your company. Customer Success begins … [Continue reading]

Success Potential: The Foundation of Customer Success

Também disponível em Português por Exact Sales Customer Success starts with acquiring customers that have Success Potential. Customers that have Success Potential are said to be good fit customers. This is the opposite of bad-fit customers that … [Continue reading]

Excuses and the Myth of Near-Zero Churn

Churn is a drag on growth. Churn hurts company valuation. There is no good reason to have churn in your business. I did an "Ask Me Anything" on Slack as part of the build-up for my “Building an Engine of Growth” Workshop and Keynote at SaaStock 2016 … [Continue reading]

Success Vector – the KPI for Customer Success-driven Growth

Customer Success is a Growth Engine. Investing in Customer Success-driven Growth is an efficient way to drive revenue and company valuation, and we need a metric that is designed to measure that growth. Introducing, Success Vector. Customer Health … [Continue reading]

Don’t Mix SaaS Free Trial and Churn Metrics

Any metric that's not acted on is a vanity metric, right? Sure, but that doesn't cover every situation. Sometimes we measure things because we're "supposed to" but honestly don't know what to do once we have the result (add that to the list of things … [Continue reading]

SaaS Free Trial Conversion Rate Benchmarks

I'm frequently asked about SaaS Free Trial Conversion Rate Benchmarks; after being asked for the 97th time - this week - I decided to publish this post. First, a bit of a disclaimer. Benchmarks are neat... it's cool to see how you stack up against … [Continue reading]

Churn is a Symptom, Not a Disease

Também disponível em Português por Mathias Luz Churn is when customers cancel their account, don't renew their contract, or remain your customer but pay you less; the latter is referred to as "revenue churn" and includes discounts, down sells, … [Continue reading]

7 Ways Customer Success drives Company Valuation

I've been saying for years that Customer Success is transformative; driving exponential value for both the vendor, as well as the customer. In fact, it's that value growth for the customer that truly drives the value growth for the vendor. What goes … [Continue reading]

Stretch vs. Bad-Fit Customers

What are the characteristics of a Bad-Fit Customer for your business? It's great to know who your Ideal Customer is (my Ideal Customer Profile Framework is constantly updated), but it's much easier - and I say required - to first identify the types … [Continue reading]

Two Ways to Reduce SaaS Cancellations

Fairy Tales have happy endings. That's why they're so popular; even if they include scary moments with monsters and evil blended family members, everything is pulled together nicely at the end when the naive protagonist is magically okay. In … [Continue reading]

The Only Two Reasons Customers Churn

Churn is the antithesis of growth. When you lose a customer, in order to grow by one customer, you have to first replace that customer you lost, and then add a new customer. And when a customer leaves, they take the revenue they were paying you with … [Continue reading]

You Have to Know why Your Customers Churn

When customers churn, that’s a problem. Even if their churn was “unavoidable” it still hurts. Churn hurts on several levels: from lowering revenue to hurting employee morale. And churn means something happened to the customer (out of business, … [Continue reading]

Pricing Strategy Framework for SaaS Startups

Pricing doesn't exist in a vacuum and is therefore not something you can tackle on its own. Pricing is a function of marketing and determines, among other things, your market position. It also indicates - or is ideally derived from - the type of … [Continue reading]