The Customer Success Growth Ladder: Revenue Ranges Decoded

Because every awkward growth spurt needs a game plan.

Author

Tomas
November 4th, 2024

Editor Notes

The Scoop

Hey CS trailblazers!

Welcome back to Customer Champions – your weekly pit stop in the high-speed world of Customer Success across Europe and Asia-Pacific.

We know you're out there every day, helping businesses of all sizes grow and thrive. That's why this week, we're zooming out to look at the big picture of business growth stages and what they mean for CS pros like you.

What's on the menu this week?

  • Featured: We're unpacking the "Overview of Business Growth Stages and Revenue Ranges" with real-world examples from companies that have turbocharged their way through these stages.

  • Quick Tips: Actionable CS strategies tailored for each business growth stage.

  • Industry Spotlight: We're shining a light on a CS leader who's mastered the art of scaling CS alongside business growth.

  • Tool Spotlight: Discover a CS tool that adapts to your company's growth stage.

Whether you're nurturing a seedling startup or tending to a mature business forest, we've got insights to help you flourish. Our mission? To make this newsletter your growth almanac for the week ahead.

So, buckle up, grab your favourite growth-mindset mug, and let's explore the exciting journey of business growth together!

Keep nurturing that growth people!

Tomas - Chief CS Enthusiast, Customer Champions

P.S. Are you riding the growth wave or navigating choppy waters? We want to hear your story! Drop us a line anytime.

Featured Article

Navigating the Business Growth Stages: A Customer Success Perspective

Remember when you thought business growth was as simple as "small, medium, large"? Well, grab your gardening gloves, because we're about to dig into the rich soil of business growth stages and what they mean for CS professionals.

Growth Stages are more than just revenue milestones. Let's break it down with some numbers that'll make your growth chart do a happy dance:

🌱 Seed Stage ($0 - $100,000): Spotify (Sweden) started here in 2006, with just an idea and a prototype. CS focus? Getting those crucial early adopters on board.

🚀 Startup Stage ($100,000 - $1 million): Wise (formerly TransferWise, UK) was here in 2011, growing from $0.6 million to $12 million by 2014. CS mission? Balancing product development with early customer feedback.

📈 Growth Stage ($1 million - $20 million): Canva (Australia) exploded through this stage, estimated to have grown from $6.8 million to $500 million between 2017-2020. CS challenge? Scaling personalized service alongside rapid growth.

🌐 Expansion Stage ($20 million - $100 million): Spotify entered this stage around 2012, with revenue jumping from $558 million to $6.8 billion by 2018. CS opportunity? Implementing robust tools and processes to handle the scale.

🏆 Maturity Stage ($100 million+): Spotify is now here, with 2022 revenue at $12.4 billion. CS focus? Innovating to maintain a competitive edge and avoid complacency.

From saplings to redwoods: The CS evolution continues

As businesses grow, so does the role of Customer Success. Let's look at how CS adapts:

🌳 Seed Stage: You're the gardener, nurturing every single customer relationship. It's all hands on deck, with direct feedback shaping your product.

🌳 Startup Stage: You're now tending a small orchard. It's about establishing a customer-centric culture while balancing product development with customer needs.

🌳 Growth Stage: Your orchard is becoming a forest. Implementing CS tools and processes is crucial to maintain personalised service at scale.

🌳 Expansion Stage: You're now managing multiple forests across different terrains. Adapting CS strategies for new markets or products is key.

🌳 Maturity Stage: You're overseeing a vast, diverse ecosystem. The challenge? Keeping things fresh and avoiding the "we've always done it this way" trap.


The future is growing (and changing)

CS isn't just adapting to growth; it's driving it. In Europe, 65% of high-growth companies cite strong CS practices as a key factor in their success. Over in APAC, businesses investing heavily in CS are seeing 2.5x faster revenue growth.

What's next? 

Expect to see more AI-powered growth prediction tools, CS teams becoming central to product development, and customer health scores becoming as crucial as financial metrics. If they aren't already. 

The bottom line?

Understanding business growth stages isn't just about tracking revenue. For CS pros, it's about anticipating needs, scaling strategies, and ensuring that as your business grows, your customer relationships deepen rather than dilute.

Remember, in the world of business growth, Customer Success isn't just along for the ride – it's in the driver's seat, navigating the twists and turns of each stage.

After all, as the old CS proverb goes, "A business might grow on its own, but it takes Customer Success to make it flourish." Okay, we just made that up, but you get the point! 

Quick Tips

CS Strategies for Each Growth Stage

Seed stage

  • Build personal relationships with early adopters

  • Use feedback to refine your product quickly

  • Document every customer interaction for future reference

Do this first: Set up a simple spreadsheet to track all customer interactions and feedback.

Startup stage

  • Implement a basic CRM system to track customer interactions

  • Develop a customer onboarding process

  • Start measuring key metrics like churn rate and customer satisfaction

Do this first: Choose and implement a basic CRM system like HubSpot's free version or Pipedrive.

Growth stage

  •  Invest in CS software to manage increased customer volume

  • Create a dedicated CS team with clear roles and responsibilities

  • Develop a proactive outreach program to prevent churn

 Do this first: Hire a dedicated Customer Success Manager to lead your CS initiatives.

Expansion stage

  • Implement advanced analytics to predict customer needs

  • Develop CS strategies tailored to different market segments

  • Create a customer advisory board for high-value insights

Do this first: Set up a customer health scoring system to identify at-risk and expansion-ready accounts.

Maturity stage

  • Innovate your CS approach to stay ahead of competitors

  • Implement AI-driven personalisation in customer interactions

  • Focus on turning long-term customers into brand advocates

Do this first: Launch a customer advocacy program to leverage your most satisfied customers for referrals and testimonials.

Industry Spotlight

Allison Pickens, Former COO of Gainsight

This week, we're highlighting Allison Pickens, a recognized leader in the Customer Success (CS) field, known for her strategic approach to scaling CS operations.

Career highlights

  • Allison served as the Chief Operating Officer at Gainsight, a leading Customer Success platform, from 2018 to 2020 1

  • Prior to becoming COO, she held roles as Chief Customer Officer and VP of Customer Success & Business Operations at Gainsight.2

  • During her tenure, Gainsight grew from a small startup to a company valued at over $1 billion 3

Contributions to customer success

  • Allison co-authored the book "The Customer Success Economy: Why Every Aspect of Your Business Model Needs A Paradigm Shift" 4

  • She has been a regular speaker at Pulse, Gainsight's annual Customer Success conference

  • Allison has written extensively on Customer Success strategies. Some of her articles have been published on the Gainsight blog and in publications like Forbes

Current endeavors

  • As of 2023, Allison is an investor and board member for several technology companies

  • She continues to advise companies on Customer Success and go-to-market strategies

Key ideas

In her book and articles, Allison has emphasised several key concepts in scaling Customer Success:

  • The importance of operational excellence in CS

  • The need for CS to be deeply integrated with other business functions

  • The role of data and technology in scaling CS operations

For more insights from Allison, readers can check out her book or follow her on LinkedIn.

Tool Spotlight

Planhat - A Comprehensive Customer Platform

This week, we're highlighting Planhat, a customer platform designed to help B2B SaaS companies manage and grow their customer base effectively.

Key features

  • 360° Customer View: Consolidates all customer data in one place for a comprehensive overview

  • Customer Health Scoring: Customizable health scores based on various metrics and activities

  • Automated Playbooks: Create and automate workflows for different customer scenarios

  • Revenue Management: Track and forecast recurring revenue, including expansion opportunities

  • Collaboration Tools: Facilitates teamwork across customer-facing teams

  • Customizable Dashboards: Create role-specific views for different team members

How it supports CS evolution

  • Startup to Enterprise: Planhat's scalable platform grows with your business, from early-stage startups to large enterprises [2].

  • Data-Driven Decisions: Provides insights and analytics to inform strategic decisions at every stage of growth [1].

  • Cross-Functional Collaboration: Supports alignment between CS, Sales, and Product teams as organisations expand [1].

Comparison with ChurnZero

Planhat positions itself as a more comprehensive platform compared to ChurnZero:

  • Broader Focus: While ChurnZero concentrates primarily on reducing churn, Planhat aims to be a complete customer platform [2].

  • Flexibility: Planhat emphasises its adaptability to various CS models and methodologies 

  • User Interface: Planhat claims to offer a more intuitive and customizable user experience

Customer testimonial

"Planhat has been a game-changer for our CS operations. It's given us a clear view of our customers and helped us scale our processes efficiently." - Eline Lubberts, Head of Customer Success at Sitly [3]

Pricing

Planhat offers customised pricing based on the number of customers and required features. They provide plans suitable for startups to enterprises [4].

For more information or to request a demo, visit Planhat's website.

Sources

  1. Planhat Features Page: https://www.planhat.com/platform

  2. Planhat vs ChurnZero Comparison: https://www.planhat.com/request-a-demo/vs-churnzero

  3. Planhat Case Studies: https://www.planhat.com/customers

  4. Planhat Pricing Page: https://www.planhat.com/pricing

Deep Dive

What We're Reading

🤝 The Customer Success Economy: Why Every Aspect of Your Business Model Needs A Paradigm Shift by Nick Mehta and Allison Pickens

🚜 Farm Don't Hunt: The Definitive Guide to Customer Success by Guy Nirpaz

👑 Chief Customer Officer 2.0: How to Build Your Customer-Driven Growth Engine by Jeanne Bliss

Q & A

Your Questions Answered

To kick off our Q&A section, here are three questions we anticipate you might have after reading this week's newsletter. We encourage you to send in your own questions for future editions!

  • How does the role of customer feedback change as a company moves through different growth stages?

  • What are the key differences in CS metrics and KPIs across different business growth stages?

  • How can CS teams prepare for the challenges of the next growth stage before they arrive?

We'd love to hear your thoughts on these questions, as well as any other questions you have about navigating CS through different business growth stages. Send us your questions, and we'll address them in upcoming newsletters!