Matt Brown (CEO of CustomerOS) recently joined Eric Gruber (Personal ABM CEO) on the ABM Done Right Podcast to discuss how to grow your best customers and drive profitability with your next best customers to create a compounding customer growth engine.
Here are the key lessons from this ABM Done Right Podcast with Matt Brown and Eric Gruber:
- Customer success teams are still reactionary and playing defense when ABM should be about playing offense. When teams implement ABM in their customer acquisition flow, where they proactively target best-fit accounts, they are more efficient and effective at acquiring high-value accounts that can provide the greatest revenue growth. But once these ideal-fit prospects become customers, many teams forget the ABM fundamentals that helped them drive revenue growth in the first place. The entire offensive approach that was taken during the acquisition phase kind of disappears and dissolves into a reactionary function called in-life customer management.With reactionary, in-life customer management, it’s the accounts that yell the loudest that gets the most attention, gets prioritized and where teams spend more time, resources, focus and customer retention dollars despite the potential for future growth. When customer success teams do account segmentation, they will focus their time on the accounts that spend the most now vs. the ones that will provide the most profitable growth now and, in the future, so many teams are missing out on the opportunities that lie in their existing account portfolio. This is happening because most teams do not have a way to distinguish between high and low value customers, so teams are taking a one size fits most approach. Broad, generalized existing customer segmentation will provide broad, generalized results.
- Most companies will measure their customer acquisition costs but most do not measure their customer retention cost and the cost to serve key accounts. They lose sight on how much they are spending on retaining accounts and the returns on that investment. This is where ABM can play a strong role in customer success and in-life customer management as ABM should be about improving account experiences to drive stronger ARR, GRR and NRR growth. It can enable teams to become more strategic in where they put their customer retention dollars to have the greatest impact on revenue growth. Just by knowing if it’s a customer worth having vs. one that is providing diminishing returns will cut your customer retention costs as you will spend the right time, resources, focus, and money on the right customers.
- ICP fit is hyper-relevant when it comes to customer success and in-life customer management as it’s about understanding how well the customer you acquired fits the solution set for the challenges you’re trying to solve for, how well they’ve adopted it based on internal hurdles and their willingness to change and engage with the solution and how well they’ve abstracting value from the solution set you promised them. From there, you can look at the relationship that teams currently have with the accounts (i.e. tactical partner vs. strategic partner) and the potential for future growth.
- Customer success teams need visibility into the data that would help them distinguish between high-potential and low-potential customers and then the enablement that helps teams provide the right account experience to the accounts they need to protect and expand.
Listen to These Additional ABM + Customer Success Podcasts:
- Peter Armaly (VP of Customer Success at ESG – Customer Success as a Service) on turning customer success into a credible business practice with ABM
- David Sakamoto (VP of Customer Success at Gitlab) on why he’s calling for ABM for customer success
- Kristi Faltorusso at ClientSuccess on how teams have an organizational GTM issue that’s leading to churn
- Steve Richard (VP of Revenue Enablement at MediaFly) on increasing ARR, GRR and NRR