The traditional buyer’s journey, or marketing/sales funnel, is just the beginning of the process for a B2B company. Smart companies, especially in SaaS, are realizing that the funnel now extends beyond an initial purchase point with new opportunities to capitalize at each stage of what’s known as the customer journey. This new vision has morphed the conventional funnel into an hourglass shape that looks like this:
Only 5-30% of company revenue comes from the initial sale. This means businesses must shift their focus beyond the initial marketing and sales funnel to focus on what happens after a sale is complete. That’s where customer success comes in. It’s critical not to ignore your customers as a viable source of revenue growth. Driving value and ensuring success at each stage of the journey—adoption, retention, expansion, and advocacy—leads to a wealth of benefits for your organization.
Benefits of Customer Success at Each Stage of the Customer Journey
- Adoption: Successful product adoption means customers understand product value and have fully implemented the product into their work.
- Retention: High retention rates (or low churn rates) are a good indication that customers are satisfied and receiving value. It means they are continuing their subscription each month.
- Expansion: Increases in expansion revenue mean customers are spending more beyond their initial purchase through upsells, cross-sells, renewals, and subscription upgrades.
- Advocacy: Advocates are customers who share their positive experiences with your product with others (word-of-mouth marketing), which fills the top of your hourglass with new, more qualified leads.