Modern digital customers want it all, and they want it now. Spoilt for choice, they are making online companies work harder to earn their keep as their demands increase, triggering a major shift in power from company to consumer, a shift that started in the retail space (we’re looking at you, Amazon) and moved swiftly to digital finance.
In this new on-demand world, where we’ve all become a bit more ‘Karen’ and a bit less ‘Zen’, customer satisfaction is no longer enough; customer success is the way to win the hearts of a generation of tech-savvy consumers.
But what is the difference between customer satisfaction and customer success? In simple terms, customer success is the effort a company puts into helping its customers succeed with its product or service, as well as with the customers’ own business operations, ensuring that the customer is not only satisfied but also demonstrably more successful as a result of using the product.
Customer success is proactive rather than reactive. While customer support responds to a customer after an issue has occurred, customer success endeavours to anticipate and address problems before they occur. To achieve this, customer success teams use metrics like the expansion and churn rate, the average monthly recurring revenue (MRR) and customer health, as opposed to customer support teams, who use metrics like time to response, customer satisfaction, handle time and first response resolution.
Why is customer success so important?
The growth of SaaS and subscription-based business models is a major driver of customer success. Consumers across all industries now expect to handle transactions at their own convenience, but they need to feel successful with the product or service they are using, otherwise, they will simply jump ship to a competitor. To stop this happening, products need to continually prove their value to ensure contracts are renewed.
Customer success can help achieve this. If done effectively, it can:
Reduce a company’s churn rate, which is the percentage of customers who leave a service provider during a certain period.
Enhance customer retention and renewal by recognising customer needs and identifying potential risks before they occur.
Boost revenue. It costs less money and effort to retain existing customers than attract new ones. A recent study by a consulting company revealed that it costs as much as five times more to attract a new customer than it does to keep an existing one.
Increase sales, as your happy customers become your biggest promoters.
Customer-centricity is essential to successful fintechs
With fintech platforms maturing and multiplying at a rapid pace, financial institutions and telecommunications companies have the pick of the litter if they want to deliver an innovative product or service to their customers. In this highly competitive fintech landscape, it is no longer enough to simply offer a service. Fintech enablement partners need to have a profound awareness of their customers' demands and consistently meet and adapt to them. Those that prioritise customer success will undoubtedly succeed on all levels and be the industry leaders of tomorrow.