One of the most fascinating things I found as I was researching subscriptions is — traditional businesses don’t really care if you use their product.
Think about it for a second. You’re going to buy a Porsche and you take the Porsche home and you put it in the garage and you put a cover on it and you never drive it for the next 10 years, 20 years, do you think Porsche cares or were they just happy that you bought it and they got your money?
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“If you think of value as what is a customer willing to pay. Buyers who don’t get value are going to churn out.”
– Mark Stiving
But imagine subscribing to a Porsche. And it’s very different.
If you’re going to pay pours $2,000 a month for the right to drive a Porsche, are you ever going to put it in your garage and put a cover on it and not drive it?
Because if you do that, you’re not getting any value at all for your $2,000 a month. What we’re really talking up then his company subscription companies need to retain customers.
When you think of win, keep, grow, this is the key part. I can go out and win a new customer, but I have to keep them happy. I have to keep them using my product to, in order to get value from my product.
And hence comes the customer success department. We didn’t really see customer success before subscriptions came along.
But now that we have subscriptions, we have customer success departments because we need to get people up to receiving value for our product as quickly as possible. We think of that as time to value. We need our buyers to continue getting value over time, and maybe we can get them to, to earn more and more value.
And we do that by customer success, sharing with them, hints and tips on how to use the product better. And maybe we can even customize those, especially for SaaS businesses.
When you can see how people are using the product, you can likely say, yes, they’re not being as efficient in this area as they could be.
Maybe we could give them some hints. Customer success then creates value.
If you think of value as what is a customer willing to pay. Buyers who don’t get value are going to churn out. They’re not willing to pay anything. Keeping buyers receiving value for our product then really does create value because value is what a customer is willing to pay.
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Connect with Mark Stiving:
- Email: [email protected]