The 3 Deadly Fallacies of SaaS Renewal - Deepstash
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SAAS/B2B Customer Renewal

The conventional theory about SaaS customer success goes something like this: 

  • Your solution creates value for the customer. 
  • The value drives their success. 
  • Their Success leads them to renew their subscription. 

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Deadly Fallacy #1: SOLUTION => VALUE

Customers who achieve phenomenal results have invariably adapted their processes to take advantage of the way the solution works. If you leave it entirely to the customer to understand and make the essential process changes you’ll naturally get highly variable results. If you are not crystal clear on how customers need to change their business process, they won’t be either. An essential role of the customer success manager is to be the agent of the customer’s business process change.

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Deadly Fallacy #2: VALUE => SUCCESS

The value your solution creates must align with the customer’s definition of success. The most common reason why this link gets broken is simply the failure to truly understand the customer’s ultimate vision for their success. Only then can the customer success manager work to ensure the value created Aligns to drive the customer’s vision of success. Value+ Alignment= Success. Value+ Alignment= success.

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Deadly Fallacy #3: SUCCESS => RENEWAL

The third fallacy is the idea that driving their success will be enough. But over time, delivering the same value has a diminishing impact relative to the customer’s evolving needs, perceptions, and alternatives. For every renewal there must be a story about how you are making an increasing impact on the customer’s success. If the account isn’t expanding, it’s dying, so you have to first secure the expansion, and the renewal will be a foregone conclusion.

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Customer Success: Phenomenal Results

  • Drive key process changes in the customer.
  • Ensure value is aligned with their success, and the impact is measured and materialized.
  • Continually find ways to expand your leverage against the customer’s success.

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Adoption and Success

Most people think that driving adoption is a big part of customer success. But it's actually the heart of one more deadly fallacy. If you’re not driving adoption, you’re missing out on a lot of opportunities.

Broad adoption inside the customer is the outcome of success rather than the cause.

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Bonus Fallacy: ADOPTION => SUCCESS

Getting employees to use the solution is a primary driver of customer success. Success drives adoption when all the elements of the causal chain lock into perfect alignment. When all the elements are there and aligned, success, adoption, expansion, and renewal seem to take on an energy of their own. If you’re interested in driving superior results, sign up for my weekly Email to get more of my Counter-Conventional insights. Click here to learn more about me and what I do and what I do,

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jiltur

Higher education lecturer

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