The Customer Success Monster Under Your Desk

Editor Notes

The Scoop

This will be our final newsletter for 2024 as we take a short break to recharge. We'll be back in your inbox in early January with fresh insights and more customer success goodness!

What's in store this week?

• We're unpacking the top five pitfalls that can slow down your Customer Success journey.

• We’ve made you a self-assessment checklist to see if you're falling into any common traps (and how to steer clear of them).

Cheers,

Tomas - Chief CS Enthusiast, The Customer Champion

P.S. Check out my latest LinkedIn post, where I dive deep into how successful teams are using AI as a catalyst for stronger customer relationships, not just as another tool in the box.

Featured Article

Navigating the Potholes: Top Challenges SMEs Face in Customer Success

The strategy vacuum

Many organizations are still operating without a formal Customer Success strategy. This is like trying to navigate without a map—you might move forward, but are you heading in the right direction? A number of research pieces I have read over the last couple of months show that companies who invest in structured CS initiatives see stronger revenue performance, with existing customers accounting for between one-third to one-half of total revenue growth, even at start-ups. The message is clear: strategy isn't just paperwork, it's a crucial foundation for success.

Reactive vs. proactive support: breaking the firefighting cycle

Many SMEs remain stuck in a reactive cycle, responding to problems rather than preventing them. This reactive approach isn't just inefficient—it's expensive. A PwC report found that 59% of all consumers feel companies have lost touch with the human element of customer experience, often because support teams are too busy fighting fires to build relationships.

The onboarding challenge

Client onboarding is consistently cited as one of the top use cases for Customer Success platforms, highlighting its critical importance in the customer journey. Real-world examples demonstrate the impact of structured onboarding.

Take HubSpot as an example: their transformation of customer onboarding through HubSpot Academy demonstrates the power of structured onboarding. By implementing clear certification paths and milestone tracking, they created a scalable onboarding program that improved customer activation rates.

Slack's journey offers another instructive example, particularly for growing companies. Their approach focused on creating an interactive onboarding experience with automated welcome workflows and contextual help resources.

Both companies demonstrate a crucial principle: successful onboarding isn't about overwhelming customers with information, it's about creating a structured path to value. HubSpot achieved this through educational milestones, while Slack focused on interactive engagement and contextual learning.

Measure what matters

My own personal experience has shown me that companies excelling in customer success share one common trait: they measure and act on the right metrics. Yet many SMEs either measure too little or focus on the wrong metrics entirely.

Resource allocation and scaling

73% of all people point to customer experience as an important factor in their purchasing decisions. However, SMEs often struggle to balance resource constraints with growing customer demands.

A strategic approach is to focus on creating scalable solutions, like self-service resources and community forums, allowing companies to maintain quality support while growing their customer base.

Moving forward

Building a Customer Success function in a SME isn't about avoiding every challenge–it's about approaching them strategically. In my experience working with growing organizations, those that invest thoughtfully in customer success, even with limited resources, consistently see meaningful returns in retention, satisfaction, and growth.

The most successful companies I've observed understand a fundamental truth: Customer Success isn't just a department—it's a growth engine that touches every part of the business. When organizations shift from viewing Customer Success as merely a support function to embracing it as a strategic driver of growth, they unlock new opportunities for sustainable competitive advantage.

The path forward requires commitment, but it doesn't require perfection. Start with a clear strategy, focus on proactive engagement, build scalable processes, and measure what matters. Your customers—and your bottom line—will thank you for it.

Quick Tips

Your Customer Success Checklist

This week, we thought you might like an easy to follow checklist instead of a bunch of tips. So, check out this quick checklist to identify potential issues and get back on track.

1. Strategy check

   • Do you have a documented customer success strategy?

   • Is it aligned with your overall business goals?

Do this: Draft a one-page customer success plan outlining your key objectives and strategies.

2. Proactive approach

   • Are you regularly reaching out to customers before issues arise?

   • Have you implemented a customer health scoring system?

Do this: Set up a monthly check-in schedule with your top 10 customers.

3. Onboarding excellence

   • Do you have a structured onboarding process for new customers?

   • Are there clear milestones and success criteria for onboarding?

Do this: Create a simple welcome packet with key information for new customers.

4. Feedback loop

   • Are you regularly collecting customer feedback?

   • Do you have a process for acting on customer input?

Do this: Set up a quarterly Net Promoter Score (NPS) survey using a free tool like SurveyMonkey.

5. Metrics matter

   • Have you defined key customer success metrics for your business?

   • Are you consistently tracking and reporting on these metrics?

Do this: Start tracking CLV for your top 20% of customers.

Remember, you don't need to tackle everything at once. Start with one or two areas where you see the biggest gaps, and gradually work your way through the list. Small, consistent improvements can lead to big customer success wins! Feel free to copy this list over and give it your CSMs or use it yourself. I won't mind!

Events

Save The Date

CX Summit APAC 2025
📅 Date: August 18, 2025
📍 Location: Sydney, Australia and Digital
🌐 Website: https://www.forrester.com/event/cx-apac/

Customer Contact Week Australia and New Zealand 2025
📅 Date: March 4-6, 2025
📍 Location: Gold Coast, Australia
🌐 Website: https://www.customercontactweekdigital.com/events-customercontactweek-au

Customer Experience Asia Week 2025
📅 Date: June 17-20, 2025
📍 Location: Singapore
🌐 Website: https://www.cxnetwork.com/events-customerexperienceasia

Deep Dive

What We've Been Reading

🪜 The Seven Pillars of Customer Success: A Proven Framework to Drive Impactful Client Outcomes for Your Company by Wayne McCulloch

💰 Need more customer success budget? Operational excellence is the key by ChurnZero

🏦 The Essential Guide to Budgeting for Customer Success by Gainsight

What We've Been Listening Too

🎙️ Redefining Customer Success in the Age of AI

Q&A

Your Questions Answered

Q: "As a small business, we're struggling to balance personalized support with efficiency. Any tips?"

A: Start by segmenting your customers based on their needs and value. Use automation for routine tasks, freeing up time for personalized interactions with high-value customers. Consider implementing a tiered support system, like Intercom did, to provide the right level of support to each customer segment.

Q: "We're not seeing the results we expected from our customer success efforts. What might we be doing wrong?"

A: A common mistake is not having clear, measurable goals for your CS function. Start by defining key metrics like CLV, churn rate, and NPS. Regularly track these metrics and use the data to inform your strategies. Remember, as the saying goes, "What gets measured, gets managed."

Q: "How can we improve our onboarding process without breaking the bank?"

A: Focus on creating a structured, repeatable onboarding process. Start with a welcome email series and a simple knowledgebase covering key features. Use tools like video tutorials or webinars to scale your efforts. Remember, Wyzowl's research shows that 55% of customers say they've returned a product because they didn't understand how to use it, so effective onboarding is crucial.

Q: "We're a B2B company with only a handful of large clients. Does customer success look different for us?"

A: Absolutely! With fewer, larger clients, your CS strategy should focus on deep, strategic relationships. Consider assigning dedicated account managers, conducting regular business reviews, and co-creating success plans with each client. Remember, in B2B, the loss of a single large client can have a significant impact, so proactive relationship management is key.

Q: "We're not sure if we're ready for a dedicated CS tool. What are some low-cost ways to improve our customer success efforts?"

A: Start with what you have. Use your CRM to track customer interactions and health scores. Set up a simple feedback system using free survey tools. Create a shared document for your team to log customer insights. Remember, Customer Success is more about mindset and process than tools. As you grow, you can invest in more sophisticated solutions.

Got a burning CS question? Send it our way, and we might feature it in our next issue. Email your questions to [email protected] with the subject line "CS Insights Q&A".