Defining the Customer Function for SMEs

Editor Notes

The Scoop

Hey there, CS trailblazers!

Welcome back to "The Customer Champion"—your weekly pit stop in the high-octane world of Customer Success across Europe and Asia Pacific.

You're out there every day, fine-tuning the engines of customer satisfaction and business growth. That's why this week, we're popping the hood to examine defining the customer function for small-medium enterprises (SMEs) and how it powers the modern business machine.

What’s in the starting grid this week?

• We're breaking down the essential components of customer success (CS) for SMEs.

• Actionable strategies to optimize your customer function on a budget.

• Stay ahead of the curve and network with fellow CS enthusiasts at these upcoming 2025 events.

• Your most pressing customer success questions, answered by us.

Whether you're a solo CS mechanic in a startup garage or managing a small fleet of CS specialists in a growing enterprise, we've got insights to help you tune up your customer function. Our mission? To make this newsletter your go-to manual for building a CS powerhouse, no matter your company's size.

So, grab your favorite customer-centric fuel (we're partial to a double espresso today), and let's dive into the engine room of modern Customer Success for SMEs!

Cheers,

Tomas - Chief CS Enthusiast, The Customer Champion

P.S. How's your SMEs customer function running? Smooth sailing, or need a tune-up? We want to hear your story! Drop us a line anytime at [email protected].

Featured Article

Small but Mighty: Defining the Customer Function for SMEs

Remember when "customer service" for small businesses meant a smile and a handshake? Well, buckle up, because we're about to take a high-speed tour of the modern customer function for SMEs. It's time to transform your CS department from a one-person pit crew to a lean, mean, customer-pleasing machine.

But first, let's define what we mean by a customer function for SMEs in 2024:

For SMEs, a well-defined customer function is more than just a department—it's the heart of your business, pumping customer-centric values through every artery of your organization. Let's break down the key components with some real-world examples that'll make your CS strategy purr like a finely-tuned engine:

1. Customer Service and Support — Zendesk, which started as a SME, reported that companies using their customer service software saw an average 17% improvement in customer satisfaction scores and a 35% reduction in resolution times. ¹

2. Customer Success Management — according to a study by Totango, companies that implemented a dedicated customer success function saw a 24% reduction in churn and a 27% increase in customer expansion revenue. ²

3. Customer Onboarding — Wyzowl's study found that 86% of people say they'd be more likely to stay loyal to a business that invests in onboarding content which welcomes and educates them. ³

4. Customer Feedback Loop — a study by PwC found that 32% of customers would stop doing business with a brand they loved after just one bad experience. This highlights the importance of constantly gathering and acting on customer feedback.⁴

5. Customer Education — according to a report by Skilljar, companies that invest in customer education see a 6.2% increase in customer retention rates and a 7.4% increase in brand advocacy. ⁵ 

Quick Tips

Turbocharge Your SMEs Customer Function on a Budget

Ready to supercharge your SMEs customer function without breaking the bank? Try these on for size:

Leverage Free Customer Relationship Management (CRM) Tools — start with free versions of CRM platforms like HubSpot to manage customer interactions efficiently.

Implement a Customer Feedback Loop — use free survey tools like Google Forms to regularly collect and act on customer feedback.

Create a Knowledgebase — develop a simple FAQ or knowledgebase using tools like WordPress or Notion, to empower customers with self-service options.

Automate Onboarding — use email automation tools like Mailchimp to create a series of onboarding emails for new customers.

Invest in Team Training — utilize free online resources and webinars to keep your CS team updated on best practices and industry trends.

Remember, the best CS strategy is one that you actually use. So pick one or two of these to start with and go make some customers successful!

Events

Save The Date

Stay ahead of the curve and network with fellow CS enthusiasts at these upcoming 2025 events:

The Customer Show Asia 2025
📅 Date: March 19-20, 2025
📍 Location: One Farrer Hotel, Singapore
🌐 Website: www.cxnetwork.com/events-customershowasia

Customer Success Summit Amsterdam
📅 Date: May 14-15, 2025
📍 Location: Amsterdam
🌐 Website: events.customersuccesscollective.com/location/amsterdam

CX Summit EMEA 2025
📅 Date: June 2-4, 2025
📍 Location: London
🌐 Website: www.forrester.com/event/cx-emea

Remember, investing in your CS knowledge is investing in your career. See you there!

Deep Dive

What We've Been Reading

🪄 The Effortless Experience: Conquering the New Battleground for Customer Loyalty by Matthew Dixon, Nick Toman, and Rick DeLisi

📈 The Product-Led Playbook: How to Unlock Self-Serve Revenue and Dominate Your Market (With a Tiny Team) by Wes Bush

🏆 The Startup's Guide to Customer Success: How to Champion the Customer at Your Company by Jennifer Chiang

Q&A

Your Questions Answered

Q: As a small business owner, I wear many hats. How can I start building a customer function when I'm already stretched thin?

A: Starting small is key. Begin by focusing on one aspect of the customer function, such as implementing a simple feedback system or creating a basic knowledgebase. Use free or low-cost tools to automate some processes, freeing up your time. As you grow, gradually expand your customer function, prioritising areas that provide the most value to your customers and your business.

Q: How can I measure the success of my customer function when I don't have access to advanced analytics tools?

A: Even without advanced tools, you can track important metrics. Start with:

• Customer Retention Rate — track how many customers continue to use your product or service over time.

• NPS — use a simple survey to ask customers how likely they are to recommend your business.

• Response Time — measure how quickly you respond to customer inquiries.

• Customer Satisfaction — after each interaction, ask customers to rate their satisfaction on a scale of 1-5.

These metrics can be tracked using spreadsheets or basic CRM tools, giving you valuable insights into your customer function's performance.

Q: I'm running a B2B SME. How does the customer function differ for B2B versus B2C businesses?

A: While the core principles of customer success remain the same, B2B customer functions often focus more on:

• Relationship Management — building long-term partnerships with fewer, higher-value clients

• Customization — tailoring your product or service to meet specific client needs

• Stakeholder Management — engaging with multiple decision-makers within a client organisation

• ROI Demonstration — regularly showing the value and return on investment your solution provides

• Extended Sales Cycles — supporting longer, more complex sales processes

As a B2B SME, your customer function should emphasize these aspects while still maintaining the agility and personal touch that SMEs are known for.

We'd love to hear your thoughts on these questions, as well as any other questions you have about building and scaling a customer function in SMEs. Send us your questions, and we'll address them in upcoming newsletters!