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Building a XaaS Customer Success Strategy That Drives Growth – Technology Flow

Any job search These days the platform shows thousands of Customer Success (CS) positions waiting to be filled. According to research by Gainsight, a customer success software platform, “Companies that invest 10% or more of their revenue in the CS function have the highest net recurring revenue (NRR).”

This supports the argument that CS jobs need to be not only contained but also expanded. Simply put, these jobs play a vital role in tech companies today.

Like most functions, CS continues to evolve and is not a “one-size-fits-all” model. Implementing the right archetype requires careful consideration by CS teams to ensure they are focused on the right functionalities, deliver a seamless experience within the customer engagement model, and deliver value to end users. Successful Companies CS is not just a job or an organization; It is an organizational idea that involves actions, investments, and coordination across multiple departments, including product development, management, marketing, sales, and technical and customer support.

Customer Success Job Archetypes

In the XaaS model, the key metric for success is Net Recurring Return (NRR). It measures the overall impact your existing customers have on revenue generation – more simply, it measures the expansion net of churn.

NRR is based on retaining and expanding your footprint. If the customer does not receive and perceive value from your solution, they will not renew or extend their contract. That’s why technology companies created customer success around 20 years ago around adoption, usage and realizing value. Since then, many companies have implemented one or more types of customer success roles.

Companies should not design their customer success roles in a vacuum.

Initially most customer success roles were adoption or service related and were filled by talent from the services organization. However, an adoption sales move naturally results in retaining customers and expanding sales. Today, many companies are creating more commercial customer success roles that focus on renewals and upselling, and some are also focusing on expansion.

Companies often implement two or more Customer Success archetypes. They typically vary based on customer segment, business vs. technical focus, and sales motion focus: adopt, renew, upsell, and cross-sell.

While these jobs may vary from company to company, there are three basic customer success role archetypes:

Receive CSM

This role mainly focuses on adoption. This typically provides insights to help manage major vendor or renewal rollout deployments or renewals.

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