When building a customer success team and making your case for more investment in the initiative, the most striking misunderstanding you may have come across is that a customer success team is a cost center and just provides really good customer support. Let’s set the record straight – a customer success team does provide excellent customer support, but it’s also a powerful revenue engine.
According to Gainsight, companies with a dedicated customer success team – focused on identifying at-risk customers and getting them back on track – see a 24% lower churn rate than companies without one. Reducing churn is key to growing the bottom line.
In addition to reducing churn, a customer success team increases the lifetime value of an account. Over time, account revenue can grow to be many times larger than the customer’s year 1 value. As a customer success team increases customer lifetime value, they can actually produce as much or more revenue than the sales team over the lifetime of the customer.
So, you had them at revenue engine. Management wants you to build a customer success team.
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Tags: channels blog, Cisco Partner, customer service, Customer Success, Customer Support, revenue engine
At the core of our company’s values is a simple concept: make Cisco customers successful. We have a vigorous process for measuring customer satisfaction and success, and conduct constant analysis of the competitive advantage they can achieve by using our technology solutions and services. This ongoing focus is designed to anticipate our customers’ business needs today, as well as in the future.
Cisco has been working with individual customers on an issue related to memory components manufactured by a single supplier between 2005 and 2010. These components are widely used across the industry and are included in a number of Cisco products. They are known to slowly degrade over time, and in some cases, have caused products to fail after being turned off and on.
The majority of Cisco products using these components are experiencing field failure rates below expected levels. Recently, however, a handful of our customers have experienced a higher number of failures, leading us to change our approach to managing this issue.
Despite many of these products being out of warranty, Cisco has decided to take a charge of $655m related to the expected cost of managing these issues. We are taking this action to support our customers and partners. This charge was excluded from our non-GAAP financials, as we do not believe it is reflective of ongoing business and operating results.
Our goal to become the world’s #1 IT provider is built on providing a superior experience for our customers in every aspect of working with Cisco. We believe our approach to this industry-wide issue is the best course of action for our customers. Despite the cost, it reiterates that we place their success above all else.
As always, we encourage our customers to contact the Cisco Technical Assistance Center (TAC) if they experience a failure in any Cisco product. If you have additional questions about this process, we recommend reviewing the additional updates at www.cisco.com/go/memory.
Tags: Customer Support, customers, memory component
At Cisco, we are focused upon internally and externally sharing social media best practices and lessons learned from individuals who have successfully integrated social media into their day job. We recently sat down with one such social practitioner, Jennifer Halim, a subject matter expert (SME) on the Customer Support Team, to learn more about how she incorporates social media into her job at Cisco.
Jennifer joined the Cisco Technical Assistance Center (TAC) in 2007 and focuses on security products in Australia. In 2010, she became a Technical Account Manager with ScanSafe, Cisco’s cloud-based web security service. Even after the move, she managed to keep up to date with the technology that she used in her previous role by actively participating on the Cisco Support Community. With over 322,000 registered users and 11 years of history, the Cisco Support Community is a platform on which technical experts and Cisco customers can interact with each other by asking and answering questions in the discussion forums, commenting on blogs, rating videos, and more. While spending an average of one to three hours per day contributing to the discussion forums regarding Cisco Security products, she participates completely out of her own will during after business hours. Through her engagements on this website, Jennifer states that she is constantly learning from other contributors to the community, and she enjoys the satisfaction of being able to help customers by answering their questions and resolving their issues.
Community participants like Jennifer who have responded to customers have contributed to Cisco’s $80 million in annual cost savings that is attributed to the Cisco Support Community and is a conservative estimate based on TAC case deflection. Based on the number of customer cases resolved, Jennifer has been one of the top contributors since she joined the community in 2010.
How does she manage to integrate her Support Community activities into her day job?
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Tags: ambassador, Australia, best practices, Cisco, Cisco Supporty Community, Customer Support, forums, lessons learned, ScanSafe, security, social media, TAC, Technical Assistance Center