ECC – The Customer Success Market

  Customer Success

< 2. The SaaS Secret | Home | 4. Customer Success Foundations >

7. Introduction

https://www.udemy.com/course/essential-customer-success/learn/lecture/20842794#content

Introduction to the

  • Subscription Economy
  • Growth of the SaaS Market
  • Changing nature of Customer Loyalty

8. Everything as a Service

https://www.udemy.com/course/essential-customer-success/learn/lecture/20843326#content

The Subscription Economy refers to Businesses that offer subscriptions vs outright purchases to their customers.

  • IaaS – Infrastructure as a Service
    • Compute
    • Storage
    • Network
  • PaaS – Platform as a Service
    • Operating Systems
    • Databases
  • SaaS – Software as a Service
  • Others
    • Music
    • Movies
    • Gaming
  • XaaS – Everything as a Service
  • MaaS – Mobility as a Service
    • Uber / Lift
  • Food Delivery
    • Fresh (Restaurants)
    • Pre-packages (Weight Watchers)

What is this worth?

  • The Subscription Economy is work 530 Billion / year
  • SaaS = 230 Billion

SaaS – Where Customer Success Originated

 

9. Customer Loyalty

https://www.udemy.com/course/essential-customer-success/learn/lecture/20243742#content

Traditional Customer Loyalty

  • Often thought of a rewarding customers for frequent purchases
    • Rewards programs
    • Airline Miles
    • Discounts
    • Theaters
  • Transactional
    • Distant customer relations, if at all
    • Simple products
    • Business to Consumer
    • Static customer relationships
    • Not really about sustaining
  • Not for Business to Business
    • Does not apply to complex purchases
    • Significant investments of time and money

Business to Business

  • Discounts not as important as transparency
    • Is the client being treated fairly
  • Education required on how to use the product/service
  • Open channels for feedback
    • Understand when customer needs change
    • Understand where the product is not 100% right
  • Must be Proactive vs. Reactive
  • Trust
    • This is not transactional, but a deeper relationship

 

10. The End of Never Ending Software

https://www.udemy.com/course/essential-customer-success/learn/lecture/20243724#content

A Closer Look at Software as a Service

Pre-SaaS

  • Licenses were purchased. You pay once and only once.
  • Maintenance and Support: ~20%
  • Professional Services: Time, Materials and Education
  • Payment: Not until it shipped
  • Hosted: On Premises, at the end user’s location and on their hardware
  • New Versions:
    • Customer’s pay for upgraded versions.
    • Requires a team to plan and implement the upgrades
  • Relationships: Somewhat long term.
    • Mostly due to the scale of getting things off the ground for the client.
    • Switching to a new product is almost impossible.

Post-SaaS

  • Licenses are subscriptions, often Monthly or Annually
  • Maintenance and Support: Often included
  • Professional Services: Time and Materials not uncommon
    • On Boarding to some degree often included.
  • Hosted: SaaS provider’s cloud. No need for additional hardware/IT on premises.
  • New Versions: Installed during a maintenance window – Provider’s cost
  • Relationship: Success Driven. While still difficult to switch, not as hard as Pre-SaaS

 

11. The Customer Success Market Wrap-up

https://www.udemy.com/course/essential-customer-success/learn/lecture/20869838#content

  • This is a growing market
  • Paying for ongoing services vs paying for products
  • SaaS will not survive without Customer Loyalty
  • Customer Loyalty is Essential! Must be someone’s full time day job.
  • Customer Success is essential to Loyalty.

 

 

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