The HotLine Magazine Archives
For The Profession of Cloud/SaaS Product Support
In 2013, the US venture capital community committed approximately 50 million to fund companies developing solutions specifically focused on helping companies to retain their customer relationships.  The exact figure may be higher, as there are a number of firms still in “stealth” mode at this point.  This amount does not include co-founder self-funding for smaller start-ups, or investments made by…

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The question: “Where should the Customer Retention / Success Management team (by whatever name) be placed in a SaaS organization?” — is one of the top queries being asked all over the global software industry.  Should CSM be a part of Sales? Operations? Professional Services / Implementation / On-Boarding?  Does it report independently to the CEO?  Worldwide, examples…

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Cost justifying a customer success management team's budget can be a challenge, especially in the beginning. The key tasks of the first phase of a CSM team’s development are to understand and categorize your interactions with the customers (type, duration, volume, cost & effectiveness) and to begin to define the statuses of the customer relationship health measurement graph. You have to be able to use this data to prove the truth of that old adage "An ounce of prevention is worth a pound of cure." Ultimately, you need to show that you are directly associated with an income stream and that you are making a strategically significant contribution to the company's overall profitability.

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Customer Lifetime Value is one of the essential management metrics for any SaaS/Cloud application vendor.  CLV is what remains after the CAC, Customer Acquisition Cost, and the CRC, Customer Retention Costs, are subtracted from the revenues of the relationship.  The actual duration of that relationship, therefore, is of paramount importance — far too vital to be left unattended. …

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