The 4 Challenges Facing Customer Success Teams in SaaS Startups

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tomtunguz.com – Customer success (CS) within SaaS startups is a relatively new idea. Consequently, the benefits of CS aren’t widely appreciated within the ecosystem which means in many companies, customer success teams must educate management teams about the impact they can effect on an organization. This can be a long process.

The most salient misunderstanding about CS is that customer success is a revenue generating team, not a cost-center. In addition to mitigating churn, CS teams increase account revenue, which in many SaaS companies, can grow to be multiples of the first year’s customer value. By dramatically increasing CLV, CS teams can actually generate as much more or more revenue than sales teams over the life of a customer.

 

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