Covid-19 has brought accelerated growth in SaaS companies to a grinding halt. The growing pandemic has forced businesses to throw their weight behind customer retention. SaaS businesses are scrambling to respond to a wide array of circumstantial customer needs, some of which are unprecedented and some of which may be the new business order. In a recent report, EY reported on some of the impact, the crisis has had, on the topline and bottom line for SaaS companies.
- Payments:
- Existing customers are coming back with requests for 30-60 day credit periods for payments
- Customers are requesting to move away from multi-year models billed upfront to pay-by-use models
- With Covid-19, Cash is the top priority to address working capital needs
- Re-evaluation of Software Usage:
- With the focus on optimizing costs, SaaS subscriptions are being scrutinized closely for value, outcomes and experiences
- Revenues:
- New sales contracts have been delayed, As a result new sales has started to show a decline for majority of SaaS solution providers
- Engagement:
- SaaS Customers need help as much as the SaaS businesses themselves. Customers are expecting more intense engagement and support
This puts Customer Success in the front and center of business. Not only does customer success need to address all the evolving dynamics of the business listed above in the interest of customer retention, but also do so effectively in most capital-efficient model.
Customer success managers (CSMs) will be critical in driving usage and renewals. The CSMs will need to proactively assess and manage the near-term impact to their top-line, while positioning for the future beyond the crisis. If steered currently, current circumstances may well provide an opportunity to build customer loyalty and expand customer base.
Remote Customer Centers can be a highly effective means to deliver on minimized customer churn and capitalize on any opportunities. These remote teams function as your extended core Customer Success team delivering several advantages.
- Besides the obvious cost advantages, the model enables a global coverage with 24×7 support model and balances customers/solutions that are high-touch with those that are low-touch.
- CSMs can increasingly rely on AI and analytics to assess account health and product usage besides making data driven decisions to systematize customer experience.
- If integrated right, a remote team allows for a large set of adaptive playbooks to measure and optimize performance.
- With such a model, you can sustain a high-touch segmented approach that drives a superior, proactive engagement. Customer onboarding and implementation lend themselves to remote customer success.
- For mid-low touch customers, the remote team can efficiently and economically iterate/experiment till optimal outcomes are achieved
- The focus will naturally involve creating an effective model that supports a high number of customer touch points
- Provide help and incentives to customers with agility across the lifecycle. Ensure availability of assistance and superior experience from customer onboarding/adoption to product usage
- Unlike traditional outsourcing, remote teams are built from the ground-up and are grafted with the same DNA as your own SaaS organization. Thus, demonstrating a greater sense of belonging and ownership. Such teams are passionate, self-driven, empathetic, and domain-specific.
A well defined set of practices, proven tools and frameworks combined with effective leadership can be the difference maker that you need to create repeat, happy and loyal customers. Data-driven, transparent and complete ownership de-risks the model and gives your CSMs insights into what is working and what isn’t. Remote customer success teams from a country such as India may just be what your CSMs need to survive and thrive in the new normal left behind by these Covid-19 led disruptions.
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