The Evolution of Customer Success

How did we get here? Why is it still confusing? And why now, more than ever, is it a business-critical function?

Below is an actual conversation I had with my mom recently…

Mom: So what exactly are you doing at your new company?

Me: I’m a Customer Success team lead.

Mom: Oh, so when someone has a technical problem, your team fixes it?

Me: No. Yes. Well, not exactly.

Mom: *silence*

Me: [breathes deeply] So, we ensure our clients derive the maximum value from our products and services and focus on helping them meet their business goals… but yes, we also make sure their problems are resolved.

Mom: Ok, does that mean you can help me set up my new printer?

…aaand scene.

A mentor of mine once told me that if you can’t clearly explain your job to your mom, then you’re not communicating well. My mother’s confusion about my nearly two-decade long career got me thinking; why is the role of Customer Success still so hard for people to understand, and how do we make its very real value crystal clear?

The simplest explanation may lie in the relative newness of the discipline. Unlike most business functions, Customer Success really only became a common business practice around 20 years ago. Back then, forward-thinking tech companies like Vantive, Sieble (now Oracle) and Salesforce started realizing that a function which focused solely and proactively on user experience, customer satisfaction, and product adoption actually led to higher customer loyalty and lower churn.

That news spread quickly, and many SaaS companies soon followed suit. In the past decade, it has become de rigueur to have a Customer Success Team. In fact, many investment firms now look at whether or not an organization has a strong CS discipline in place as they value companies.

And yet, since the inception of Customer Success, companies have struggled with the right application. In contrast to typical business functions like sales, tech support and product development, CS and the specific role of a “Customer Success Manager” (CSM) didn’t have a tidy definition, and actually overlapped with the motions of traditional departments. That “muddied water” of responsibilities caused friction and CSMs often found themselves feeling like glorified support agents who were also somehow responsible for post-sales revenue.

Over time, the mission of CS has become more and more refined, but not perfected. In fact, the definition of Customer Success today and its application from company to company can be fluid. What has emerged are two different schools of thought. Let’s call them Camp A and Camp B. Camp A believes that CS is squarely a revenue function and should be focused on upsells, renewals and expansions. Camp B feels that there should be a “separation of church and state” and that the CSM should be laser-focused on health and optimization, as purely revenue-focused goals can cause a conflict of interest with value delivery.

Gainsight, a company that provides Customer Success Management tools, defines Customer Success as “a business method that uses your product or service to help customers achieve their objectives. It’s relationship-focused client management that aligns your customer with your company’s goals — igniting beneficial outcomes for everyone involved.” That definition is by far my favorite one as it doesn’t define the “how” but focuses on the “what” the function should do.

Despite the varying schools of thought on application, there seems to be one universal truth that is held at most progressive companies today; If you want to retain and grow customers, you must invest in Customer Success. Customer Success is no longer a Silicon Valley buzzword, but rather a critical function to any organization that cares about the health of its customer base.

As what some would call a veteran of the field (if 20 years qualifies me as a veteran), I have found the evolution of Customer Success to be exciting, fascinating, and exceptionally challenging. I’ve had the benefit of working at some incredible organizations, many times as the “founding mother” of the CS team. I do not have a strong opinion on whether Camp A or Camp B is right, but I do fundamentally believe the application of Customer Success should be one that “ignites beneficial outcomes” as Gainsight defined.

I believe CS orgs — now and in the future — should be purpose-built and mission-driven in a way that best supports the company and its clients’ businesses. If that means deviating from one of the traditional models, then so be it. And that’s a good thing. I also believe that now, more than ever, companies should look at CS as the hub of their business and invest accordingly.

I also dream that someday, when a future CS person out there gets asked the same question about what they do, the answer to their mom will be as clear as, “I’m an accountant”.