Getting your customers to buy more from you is awesome.
Remember, you’re in business here and getting customers you’ve already spent money to acquire and serve to then expand their relationship with you – giving you more revenue – just seems like a super-efficient way to grow.
And it is.
But if you think for one minute you’re going to build a sustainable growth engine off the backs of unsuccessful customers, you couldn’t be more wrong.
Stop trying to upsell unsuccessful customers.
Unsuccessful customers don’t need – or want – to buy more of your stuff.
Obviously, right? Maybe… let’s explore this together.
Trying to upsell unsuccessful customers can have a lot of results, but none will involve you actually making the sale (without excessive concessions, undue pressure, and other things that don’t actually help the situation long-term).
Rather, by trying to sell more stuff to an unsuccessful customer,
Customers buying more from you is awesome.
I mean, you’re in business here and getting customers you’ve already acquired to expand their relationship with you just seems like a super-efficient way to grow.
And it is.
So when you have customers that don’t expand their relationship with you, it’s obvious that this is less-than-ideal revenue-wise.
But it’s more than that.
So much more than that.
Let’s dig in, shall we?
First, you must understand that expansion is part of the customer’s journey toward success.
Think about this… what do you sell customers on initially?
It’s most likely “do business with us, and you’ll become a better version of yourself.” We’ve all seen the Mario==>Super Mario meme.
So your customers come in assuming, since they bought your product or service, that they’re going to make that transformation.
But… most companies drop the ball right there. They don’t follow-through on that
If you want to grow fast, don’t do what most companies do!
When most companies want to eke out some quick incremental growth, they’ll often have their sales people turn to their existing customer base to make some sales.
After all, you have a captive audience that you can sell to with little to no real effort, right?
Yeah… and you’ll get little to no real results, too.
Look, your existing customer base IS incredibly valuable… assuming you leverage that asset the right way.
Most companies handle Account Expansion poorly and therefore experience very poor results.
If you don’t want to be like most companies and to actually grow fast, leaving incremental growth for the other guys, and doing so in a customer-centric (and therefore sustainable!) way, continue reading.
This post could change your business. Seriously.
Want to grow fast? Have one team dedicated to bringing in net new
When it comes to Customer Growth or Account Expansion (upselling & cross-selling), I assumed people knew that…
…you don’t have to hurt the relationship with your customer to hit your numbers.
…it doesn’t have to be a difficult slog that you struggle through to barely hit your numbers.
…giving CSMs or other non-sales people a sales quota is fraught with danger (on so many levels).
…expansion quotas – and, frankly, most expansion strategies – at best result in incremental growth, doing much damage in the process (which often offsets whatever “growth” they bring)
I assumed… but I was wrong.
I think it’s time to dive into why upselling hurts trust (when you do it wrong).
First, remember that there’s a huge difference between New Business Sales and Expansion. If you don’t know, start there.
Now, forcing products or services on customers when they don’t need, aren’t ready for, can’t be
Co-Founder at Plato, Jean-Baptiste Coger (JB), held a session with CEO at Datadog, Olivier Pomel, at SaaStr Europa. Pomel focuses his talk on making your SaaS startup customer-centric. He talks about how event marketing has helped him integrate his engineering and sales teams. He also talks about product managers and ways to utilize them effectively. Lastly, he provides his piece of advice to all founders that are looking to become customer-centric. What’s your take?
Also, if you didn’t attend SaaStr Europa, we’re having it again in 2019. Don’t miss out on the chance to get your tickets. 🙂
TranscriptCEO @ Datadog | Olivier Pomel Co-Founder @ Plato | Jean-Baptiste CogerJB: My name is JB, I’m one of the founders of PLATO. So I start with a simple question. How many of you guys’ product rely on the highly functioning engineering team? Yeah, everyone, right? So that’s pretty Continue reading "Olivier Pomel, CEO of Datadog: How to Build and Sell a Product that Customers Love (Video + Transcript)"
This session with leaders in the customer success space discusses best practices for your customer success teams in 2018. They talk about when to hire your VP of Customer Success, qualities to look for in your team and how to ask for feedback at the best times in the customer journey. After all, Jason Lemkin says 90% of your revenue goes into customer success.
Also, if you didn’t attend SaaStr Europa, we’re having it again in 2019. Be sure to grab tickets before October 1st because prices will be going up come November 1st. This is your very last chance to grab tickets starting at $199!
TranscriptKatherine Barrios | CMO @ XenetaEmilia D’Anzica | Principal @ Customer Growth AdvisorsSue Doris | Director of Marketing & Customer Experience @ M4 CommunicationsSue Doris: Hello everybody! How’s everybody doing? If you’re in the right place, this is Very Best Continue reading "Best Practices in Customer Success in 2018: Maximizing Revenue, NPS and Happiness (Video + Transcript)"
Most companies will tell you how important onboarding is and that it is one of their top priorities on any given year. However, these same companies struggle to improve their current onboarding performance. One of the major limitations for companies is the lack of data and insights. In fact, in the “2018 SaaS User Adoption & Onboarding Benchmarking” report, “48% [of companies] rely solely on informal calls with customers” to figure out sticking points and issues.
If I had to guess, companies already have lots of ideas on how to improve their onboarding flow, but they don’t have the right data to prioritize and execute on those ideas.
Before we go further, let’s properly define onboarding. Appcues defines onboarding as, “Activation [onboarding] takes place when users first achieve the value you promised.” This can happen over a few minutes, hours, or days (or even longer).
Editor’s Note: This article was first featured on the Kia CX Consulting blog here.
One of the biggest challenges customer success organizations face today is determining how to effectively resource accounts throughout the customer’s lifetime.
Determining the account coverage model – knowing who is responsible for the customer at all times throughout their journey, ensuring seamless transitions along the way if hand-offs are required, the types of roles required to drive product adoption, and how everyone is compensated to drive the right outcomes – is imperative for an organization.
It gets more complex when sales is thrown into the mix. Customer success typically finds itself trying to determine how best to align with sales to provide customers with a seamless transition from the acquisition (or sales) to retention (or post-sales) phase.
The areas of concern I hear most frequently from customer success professionals when building and evolving the
Typeform leaders knew it was important to invest in customer success during the early stages of the business. David Apple, VP of CS, breaks down the team structure that has helped scale the business to over 3M users. Learn where to draw the line when it comes to segmenting customers who warrant a dedicated CS resource vs. purely self-service experience and the leading indicators associated with the success of the team. For more content like this, be sure to subscribe to our newsletter at openviewpartners.com/newsletter.
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At SaaStr Annual 2018, Tom Hale, President of SurveyMonkey, talked about SurveyMonkey’s success in customer satisfaction. He talks about NPS, how to understand it and utilize the data from your NPS to improve your product(s) and customer happiness.
Also, don’t miss out on discounted prices for SaaStr Annual 2019 tickets.
TranscriptTom Hale, President of SurveyMonkey:
Everybody. I had a choice between sitting in chairs without someone else or sitting behind this really, really important TV talk show host desk. I’m not going to interview anybody, but I do have some content for you guys. We’ll try and keep it light and brisk and moving quickly. I will hang out a little bit afterwards if people want to talk some.
Today I’m going to talk about NPS, and I’ll explain what it is if you don’t know, and how important it is for SaaS businesses at three stages of development, Continue reading "The Secret to Keeping Customers Happy for 20 Years – Lesson From President at SurveyMonkey (Video + Transcript)"