When Will You Lose Your First SaaS Sale Because Your Customer Success Services Are Not Market Competitive?
Organizations invest in software because they are trying to solve real-world business problems. Savvy software buyers have come to realize that what matters more than what the software does (features and functions) is what their own people do with the software to create business value. Buyers care less about all the bells and whistles within the application; they are more concerned with getting answers to two questions:
1. Can we get our people to use it in a way that will solve our business problems and create business value?
2. What customer success resources and services will the vendor provide to help me get the results I need?
There is a growing recognition in most buyer’s organizations that while they can often get a system live, they really struggle to get their own people to use it in a way that creates value. This recognition is driving software buyers to rely on their vendor’s customer success services for help.
This has software buyers asking lots of questions during the sales process about the scope, approach, effectiveness and maturity of prospective vendor’s customer success program. Buyers realize that not all customer success services are created equal. Buyers now select the vendor that has the best overall combination of products and services. They are going with the vendor that has the greatest likelihood of delivering the business outcomes they need, not the vendor with the most features, best user interface, or cheapest price.
The challenge for most SaaS vendors is that historically they have been very product focused. They prefer to make their revenue from licenses, not services. Many SaaS vendors have been slow to invest in customer success, or they have underinvested in it. Vendors primarily thought of their customer success services as a churn prevention program, and not a competitive sales differentiator.
But things are changing and changing fast. Buyers are voting with their wallets and going with the vendor that represents the best overall value and the lowest overall investment risk. It is no longer sufficient to have a great product, if you don’t also have the customer success services buyers need to feel confident in their ability to achieve the business outcomes they need from purchasing your product.
Which brings us back to the question, when you will you lose your first sale because your customer success services are not marketing competitive? It will probably happen sooner than you think.
Most software projects fail to deliver the expected business outcomes because of the approach the buyer takes to getting the system live and driving adoption. Most buyer’s organizations don’t have the expertise, tools and capacity to deliver their own success. This short video explains many of the methodological and structural problems organizations face when dealing with software.
If you are looking to help software buyer’s create their own internal software success programs, Tri Tuns can help. Contact us to find out what we can do for you.
Come join us for our fast-paced, insightful, unplugged conversations with two leading “Jasons” in Customer Success. Jason Noble, a UK based visionary Customer Success executive and leader, and Jason Whitehead, a US based Customer Success and Software Adoption leader, discuss a variety of topics and issues of importance in the field of Customer Success. Each month we explore a new and important topic related to Customer Success, so be sure to join each episode in the series!