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Home SaaS News

Customer Success Has Gone from The Customer’s Ally To Its Nemesis

admin by admin
June 20, 2023
in SaaS News


So we’ve been writing about the power of a strong, funded, dedicated customer success organization since the beginning of SaaStr way back in 2012.  While now mainstream, our early thinking on the power of Second Order Revenue, in many ways, informed a generation of SaaS entrepreneurs and the whole CS space.

But … things have changed in the past 24 months or so.

I now dread calls and Zooms with Customer Success — and I’m not alone.

Just a few of the recent emails and calls we’ve gotten:

  • A random person in CS emailed us they are increasing our pricing more than 10x.  Thank you much.
  • A VP of CS sending us an NPS survey for a flawed product, getting a low grade, and only sending an automated response days later.
  • A Director of CS we’ve never heard before telling us they’d shut off access to our product early if we didn’t agree to a 20% higher renewal price.

How many CS execs in that same time period reached out, for real, to see if they could help us?

None.  Nonce.  Zero.

There are a lot of factors at play here.  Pressure from slowing growth.  Pressure to maintain slipping NRR and slipping renewal rates.  A focus on NRR over GRR.  Price increases across the board, often handled poorly.  And the worst root cause IMHO?  Having CS report to sales.  This turns it into a sales function — not a success function.

I was sent an NPS survey from a vendor we pay $100k to

I gave honest, tough, rough feedback

I got an automated response back from the VP of CS and a price increase#CSin2023

— Jason ✨Be Kind✨ Lemkin  (@jasonlk) May 27, 2023

The rise of the CRO is here to stay.  Everyone wants to be a CRO now.  But if that means Customer Success is now just a glorified upsell function — count me out.

I’m missing the good old days when Customer Success was really just about … customer success.  I no longer want to talk to Customer Success anymore.  9 times out of 10, they either don’t help, or just want more money.  No Thank You.

A related post here:

4 Recent, Very Bad, Truly Terrible Customer Success Experiences. Just This Week.

(Dreaded call image from here)





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