MarketStar Blog

Key Takeaways:

• Effective sales pipeline management can help you organize your sales process efficiently and make better business decisions

• A sales pipeline represents the complete journey of a buyer – from coming in as a lead to becoming a customer

• Sales pipeline software helps track each stage of your pipeline, monitor the process, and helps in understanding the next steps

• Sales pipeline CRMs offer customizable pipelines that help manage leads, opportunities, and customer relationships throughout the sales process

• A CRM tool helps you understand if a lead is responsive and if they’re interested in your product or service

In today’s competitive marketing world, businesses need innovative sales strategies to attract leads. And the sales process plays a vital role in attracting those leads and converting them into customers quickly. 

From generating leads and building a contact repo to following up and closing the deal, your sales process requires systematic planning to help the team close the deals faster. 

However, managing it manually can be time-consuming and tedious. To help manage things efficiently, you can empower your team with effective sales pipeline tools.

This blog will cover everything you need to know about sales pipelines and the top tools to manage them.

What is a Sales Pipeline?

A sales pipeline includes several stages, and the leads are moved from one stage to the next as they move through the process. The stages include lead generation, lead nurturing, marketing qualified leads, sales accepted leads, sales qualified leads, closed transactions, and after-sales.

Today, organizations employ technology to move, monitor, or evaluate prospects through the phases of a deal, and this technology is called sales pipeline software. It enables businesses to keep track of their prospects and clients and know where they are in the sales funnel.

With a sales pipeline enabled in your work process, you will know how many deals your salespeople need to close in a given time.

The importance of maintaining your sales pipeline is straightforward – to stay ahead of the game and manage your salespeople. It also helps to improve your sales operations process, get a picture of your targets, and better revenue forecasting. 

Are you looking to be more successful in your business? Identify the changes that can be made within your sales pipeline, so your prospects move from one stage to the next faster.

How to Build an Effective Sales Pipeline?

We’ve listed down the steps to help you build a successful sales pipeline:

• Understanding your target audience is the first step to building an effective sales pipeline.

• Next, set up your sales cadences for the best accounts by identifying and targeting them from your database.

• Group those accounts based on product interest, location, and previous interaction with your brand.

• Finally, set up a successful sales pipeline with the right tools and software.

Read on to explore the best sales pipeline management tools that can help you set up an efficient sales pipeline.

Sales Pipeline Tools

Sales pipeline management tools help you organize your entire selling process.

It gives you a clear view of your pipeline by tracking every stage, streamlining the complete process, enabling your team to function better, and helping in understanding business growth.

These tools can also accurately evaluate your leads, predict sales, and track key metrics. Stay informed of your prospects, enable your sales team to follow up with them, and make better decisions with an effective sales pipeline.

How a Sales Pipeline Tool Can Help Your Business

By using a sales pipeline tool, you can organize all the processes in your pipeline efficiently.

You can understand where your leads are coming from and where they are in the pipeline and automate scheduling meetings, sending emails, and more.

Apart from minimizing human errors and saving time in repetitive tasks, it helps your business with the following:

• Understanding customer behavior: Sales pipeline tools can track conversations and metrics, which helps in understanding your customers and their pain points better.

• Making better decisions: The tool offers insights regarding leads, conversions, and processes, helping you make better decisions and understand where your business is headed.

• Generating more revenue: It helps you understand which leads are cold/potential, and how interested they are in your product/service while translating into more conversions and revenue generation.

The 4 Essential Tools to Manage Your Sales Pipeline

Let’s look at the top sales pipeline management tools, their features & benefits, and why customers prefer using them for managing their sales processes.

1. Salesforce

Salesforce is one of the top CRM software providers as it redefines the way businesses connect with their customers.

It is designed for marketing, sales, and customer service ops to create meaningful customer relationships by understanding their requirements.

This CRM helps in creating an effective sales funnel to nurture customers. It provides excellent automated features and customer service tools to help manage good relationships with your leads/customers.

According to Salesforce customer success, companies that switch over to Salesforce see an average of 25 percent increase in revenue.

Benefits:

• Salesforce helps communicate with customers/leads using automation tools

• Gives a 360-degree view of your customers and engages with them accordingly

• Removes the burden of using various applications by syncing data from them all

• Positively impacts online customer support by providing chat assistance

• It helps your brand have a unified approach with an omnichannel feature

• Collects insights to understand your customers and business better

2. Pipedrive

Pipedrive is a fully functional, cloud-based CRM tool for managing sales effectively throughout the pipeline. It helps you stay focused on hot deals, track leads, and predict business revenue.

Pipedrive offers custom web forms and chatbots to automate repetitive tasks. It helps you get the most important deals fed into your pipeline and track calls/emails/contact history for each deal. Control your sales pipeline through a mobile device and boost your work by integrating Pipedrive with your business tools.

Benefits:

• Pipedrive is easy-to-use and customize

• Can track the number of active deals and give detailed information for each open deal

• Guides you with the deals that need prioritization

• Adaptable and cost-effective plans

• Offers machine learning-powered sales assistant for all plans

• Workflow automation for most plans

• Pipedrive doesn’t have all the features that Salesforce does, but it is perfect for small businesses with smaller budgets.

3. HubSpot CRM

HubSpot CRM is a cloud-based tool that supports sales, marketing, customer service, and content management with better resources and strategies. You can avoid your sales falling through the cracks and easily manage your deals.

HubSpot CRM helps you to design attractive brand profiles and organize all the important communication details with your leads/customers. It allows you to add new deals directly from the CRM with up-to-date details.

Whether you already have an established sales process or are just starting, HubSpot CRM eases your work by creating an ideal process. With HubSpot, you don’t need the help of a technical team to edit, delete, and add deal properties and stages. 

Benefits:

• It allows you to create visual dashboards and design a sales funnel the way you want it.

• It can be connected to your social media handles.

• The website integration feature will notify you when a lead visits your website.

• The features of HubSpot CRM are not as complex as other CRMs’

• It also offers a clear view of all the tasks/activities of the team in a single dashboard

4. Lusha

Lusha is a data enrichment tool that enables you to retrieve phone numbers, email addresses, and other contact information quickly and easily. It helps you to access your leads’ contact details and B2B company info within seconds.

Marketing and sales professionals can use Lusha to drive business growth, boost campaigns, and improve revenue.

Benefits:

• It helps gather accurate B2B contact information

• It allows data enrichment at scale

• One-click CRM integrations

Bottom Line

The goal of any company is to increase revenue and generate leads. However, most leads are lost in the pipeline due to irregular/negligent follow-ups. 

An effective sales pipeline management system can help convert your leads into customers. If you haven’t implemented sales pipeline management for your business, it is high time you do it immediately with expert help. 

That’s where You need MarketStar as your sales and revenue accelerator. MarketStar is a pioneer in the sales outsourcing industry. With over 50+ world-class clients served, we create growth and drive results for companies of all stages and sizes using tailored solutions to help you hit your specific business goals. 

Key Insights

Like all areas of business, telemarketing has undergone rapid changes in the aftermath of the COVID-19 pandemic. 

Call volumes have increased, contact center managers are looking for better tools, and there is a renewed focus on increasing process efficiency. 

A study by the Harvard Business Review highlights how difficult calls saw a 50% uptick during the pandemic.

Key Insights

It is tempting to do everything in-house. The more you can do in-house, the less you pay the third parties. But at a granular level, this approach can prove to be challenging.

Key Insights

• Your customer onboarding strategy is probably the most important stage of the customer lifecycle 

• While it comes right at the start of their journey, with your offering, it sets the tone for their whole relationship with your product and company 

• The ultimate goal of any customer onboarding program is to get your customers to come back to your product

A 5% increase in customer retention can increase a company’s profit by 25%, according to a report by Bain & Company.

Why? Because loyal customers are more likely to repeat their purchases. 

Effective customer onboarding is one way to ensure this. 

User onboarding is so critically important because it sets the tone for the ongoing relationship your customer has with your product. A good customer onboarding process will: 

• Keep Your Customer Engaged: They will clearly understand and experience the value they’ll get from your product. More importantly, it will give them a reason to log back in and use your product again and again.

• Improve Trial Conversions: If you offer a free or discounted product trial, user onboarding is where your trial users get to experience the value of your product. A good user onboarding process— right at the start of their trial — will help them to convert into paid customers.

But how do we create the perfect customer onboarding experience? 

The article shares the top actionable practices and trends of customer onboarding for 2022. 

1. Simplify the Sign-up Process

The average landing page conversion rate stands at 2.35%. The top 10% of sites are looking at 11.45% and above.

The above onboarding statistics brings us to a common misconception– that customer onboarding doesn’t start until a customer has signed up for your product. 

While every company operates differently, if you see a higher-than-average drop-off rate, it suggests you’re asking for too much information too soon. 

Such an approach gives a negative brand review or recommendation. 

Ask yourself the following questions while working on your company’s sign-up page: 

• Does your page make it easier for customers to sign up?

• Are you collecting only the essential information to personalize users’ experiences?

• If the answer to these questions is a resounding yes, you’re on the right track! 

Don’t forget that you can always collect more information about the customers in the later stage

2. Send a Welcome Email

A welcome email expresses gratitude. It speaks volumes about how much you value your users.

It also sets expectations for the customer onboarding process.

A few tips that can help you craft a stellar welcome email are: 

• Ensure that your content is crisp, actionable, and easy to understand. 

• Consider including a call to action (CTA) along with the welcome email. 

• Share the email IDs of your support team so that your customers know who to reach out to in case of queries. 

• You can also make way for AI-powered writing tools and automate the entire process of sending welcome emails. 

3. Integration and Data Imports

If you are a B2B business, then your customer onboarding strategy is more than just helping your customers learn how to use your product.

Your product is now part of your customer’s technology stack. This means that they may need to set up integrations with other tools they use or even invite their team to get the most value from your product.

Automate as much as you can.

Set up an integration between your customer’s marketing automation platform and your product. This will help you remove sticking points that might stop the customer from getting value from your product. But ensure that such a practice is optional and not mandatory.

4. Product Walk-through

A well-thought customer onboarding plan consists of product walkthroughs for your customers. This helps them get set up and complete key tasks within your product. 

However, product walkthroughs can be done away with if your new customer is already familiar with your product. An unskippable walkthrough can be just as much a barrier for your clients. 

Remember that not everyone will want to go through a product walkthrough the first time they log in. Make it easy for your new customers to return to your product walkthrough later. 

For some users, such walkthroughs might not be enough to get them started. Make it easier for your customers to find extra support.

Building Better Rapport

It is easy to think that the main goal of your customer onboarding process is to help your customers start using your product. It is so much more than that. 

Your ultimate objective is to set your customers up for long-term success, where they become not just your repeat customers but also loyal brand advocates. 

Your metric for a successful customer onboarding program is whether your customers log back into your product in the days, weeks, and months after first use.

Key Takeaways

In the dynamic marketplace that we are in today, building long-lasting relationships with customers is the only way for organizations to ensure the success of their business goals

Key Insights

• In the past few years, the methods of delivering adtech solutions have dynamically transformed the industry

• This sudden surge has left marketers scrambling to capture the eyes of viewers whose attention is more divided than ever

• Adtech offers a way out with its countless opportunities

• As it continues its spread, ad tech companies will be able to develop more integrations, more data sharing, extended reach across all channels, and cleaner integrations against content

You run ads, and then your ads dominate the industry. All thanks to the brands that worked on it with laser-sharp focus.

However, there is an invisible force that is keeping the lights on–adtech.

Advertising technology has been around for a few years, but it only recently caught the attention of savvy ad tech agencies.

In the era of rapid digitization and big data, brands are recognizing the need of striking long-lasting relationships with ad tech companies to make themselves more powerful and attractive to clients.

The industry is already rife with fierce competition, operating at a breakneck pace.

In the age of social media, agencies are feeling the need to investigate innovative ways to interact with relevant users, rather than relying on typical broadcast or digital media buys.

The advantages for agencies investing in adtech are plentiful. According to the Global Ad Spend Forecasts 2021 by Dentsu, global advertising is forecast to recover upto 10.4% growth, reflecting a total spend of $634 billion.

So, while advertising's purpose has not changed much, its methods have evolved. 

How Do You Navigate this Landscape?

From aligning sales and support to providing effective onboarding, we bring you the top 5 factors to consider while selling adtech solutions in 2022 and beyond. 

1. Differentiate Yourself 

The competition in the adtech space is fierce because there are thousands of companies that compete for a vast, yet growing amount of money. From Google to a budding enterprise you haven’t heard of, the competition is undoubtedly high. 

To succeed, adtech companies must find their niche. This is how you can ensure your service remains in demand, no matter who or what is in control of the market. 

Start with a good idea that has not been capitalized on.

The future of adtech involves understanding industry trends and what the customer needs. Successful adtech solutions locate holes in the marketplace and work backwards from the needs of these customers to develop and deliver a solution.

Effective content can be your weapon of choice here. It is a proven scalable tool while being relatively inexpensive to promote and position your company in a potentially saturated market.

From leveraging different content formats to providing greater value, there are many ways for companies to position themselves.

2. Specialize Your Sales Team 

Many companies, especially in the software sector, have discovered the power of specializing in their sales functions to achieve new levels of growth.

While adtech companies aspire to be software, only a few have started thinking like software companies, especially when it comes to sales.

The guiding philosophy of specialization is that sellers should focus on closing rather than prospecting. Moreover, they should leverage a specialized “sales development” function to find qualified prospects that match their target criteria.

This specialized sales function should also move away from account management and growth, which then would be taken care of by teams specializing in the said skill.

3. Don’t Discredit Long Tail Sales

As you get more successful with your adtech solutions, it is tempting to focus on the big hitters. However, many of your competitors are also aiming for the enterprise level, making it a more competitive field. You face less competition when dealing with a small business. 

In the US, 28 million small businesses in America account for 54 percent of all sales in the country. Needless to say, the long tail in digital media accounts for a significant sum.

Advertising technology must be worked upon, keeping this in mind.

In today’s hyper-connected culture, many of these small enterprises are connected via bigger consortiums. Making connections with appropriate decision-makers is much easier. 

4. Build Your Own Tech Stack

As passionate as most adtech companies are about their prospects’ technology choices, many don’t apply the same concern for their own sales or marketing tech stacks. 

Some crucial elements such as sales automation, marketing automation, CRM, and a couple of key data sources are key to the success of your adtech solutions. 

CRM governance and hygiene are increasingly critical for garnering insights over long sales cycles and with increased cross-functional account involvement from specialization. 

5. Increase Your Investment

While we are in a better place than six to 12 months ago, the market remains uncertain.

A knee-jerk reaction for most companies in a recession is to cut marketing spend and cease all marketing activity. However, this can prove to be fatal for the growth of adtech solutions.

Marketing is no longer a ‘nice-to-have’ function. It is central to business operations and holds vital things like customer experience, user experience, and customer trust and loyalty.

Smart marketers, over the last two years, changed and increased their investment compared to their competitors. They were able to grab a larger voice, and consequently, they feel they can grow their market share. 

Wrapping Up

The adtech solutions space is getting more complex and competitive every year.

For adtech companies, the priority is quite clear: build everlasting relationships by providing a stellar customer experience.

With the right tools and mechanics in place, it is completely possible for adtech companies to set themselves up for success, even in the saturated digital media space. 

Key Takeaways

• If there is one SaaS metric you should monitor carefully, then it is your churn rate. The lower the percentage, the better

• However, the churn rate does not give you the full picture and health of your business

• To understand the impact of churn on your revenue, Net Retention Rate (NRR) and Gross Retention Rate (GRR) are more effective markers

• Choosing between the two metrics can be tricky as the metric you employ can help determine the health of your business

Almost every profitable enterprise relies on its customer base to succeed.

Customer success is, even more, a critical consideration for businesses that provide solutions through a SaaS model.

Customer success is an important component of every department: marketing, sales, onboarding, support, hiring, or operations. The goal is to deliver value to the customers.

Therefore, the question that arises is: How do you measure it?

Few critical metrics for customer success provide valuable insights into the many factors that determine your customer’s success. These metrics help businesses understand and explain how and why a customer uses their solution, how many customers they are retaining, and the value of both retained customers and those lost to attrition.

For many organizations, the answer to these questions lies in using several methods or metrics. At the same time, these metrics are not static and can keep changing through the customer life cycle.

Why are Customer Success Metrics So Critical? 

The metrics for customer success come into the picture because of customer churn. And less than ideal customer service is one of the most dominant reasons why customer churn occurs. 

According to one study, 65% of customers have switched to a different brand because of poor customer experience. So even if you have the most competitive product in the industry, a mediocre experience will lead you to lose customers.

A crucial reason for reducing your churn rate is the reality of just focusing on new customer acquisitions. 

While the success rate of selling to a new customer stands at a mere 5-20%, your success rate of selling to an existing customer is 60-70%! This is because your current customers are already happy using your product or service. They trust your business, which is so important if businesses want to remain relevant in the current competitive landscape.

New customers, on the other hand, need to be convinced why they should spend money on your product.

Existing customers will be the key to your business success.

Consequently, you can significantly reduce churn if you know what your current customer base is experiencing and what you can do to alleviate some of their pain points.

The 2 Key Metrics to Measure the Efficacy of Your Customer Success Program: NRR & GRR

Broadly speaking, there are two metrics that can help you measure the amount of revenue you have retained or revenue that you did not lose to churn.

These customer success metrics are – Net Retention Rate (NRR) and Gross Retention Rate (GRR).

What is the Net Retention Rate in SaaS?

Net Retention Rate is a SaaS-based metric that helps businesses calculate the percentage of revenue they have retained from existing customers over a period.

This can be monthly or yearly and can include upgrades, downgrades, cross-sells, and cancellations.

In simple terms, your NRR helps you understand how many of your existing customers are staying loyal and extending their subscriptions.

NRR, also known as Net Dollar Retention, helps you understand whether the service you are providing has the quality of engaging new customers and meeting their needs. It’s a key metric that can help uphold a company’s financial performance and comes in handy when evaluating the quality of customer success.

Calculating Net Retention Rate

You first add your Churn MRR and Expansion MRR and subtract them from Contraction MRR. 

Further, subtract the result from starting MRR. Now, divide the result by starting MRR and then go on to multiply it by 100 to get your Net Retention Rate.

NRR = (Starting MRR – Contraction MRR – Churn MRR + Expansion MRR)/ Starting MRR x 100

Here’s what this means:

• MRR: Monthly Recurring Revenue or the amount of recurring revenue a company predicts to earn each month

• New MRR: Monthly Recurring Revenue from new customers

• Contraction MRR: These are your downgrades or lost MRR from existing customers

• Churned MRR – These are your lost MRR from canceled customers

• Expansion MRR- These are your upgrades or MRR from existing customers

Improving Net Retention Rate

To begin with, you can encourage your users to upgrade their trial accounts to paid accounts using modals.

A modal is a rectangular UI element that is commonly used in SaaS businesses to notify users of something important.

Modals are effective as they grab the customer’s attention as they normally take up most of the user interface. Contextual in-app messaging is another great way to help increase your NRR.

What is the Gross Retention Rate in SaaS?

Your Gross Retention Rate is the ability of your business to retain its existing customers.

When you retain your customers, you retain revenue. So, GRR is the percentage of customers a business can retain at the existing price point.

Unlike NRR, your GRR does not take into account revenue earned from expansion, upsells, and cross-sells. But it does include any downgrades or cancellations of subscriptions. Your Gross Retention Rate simply tells you how happy your existing customers are. It is a stability indicator of any SaaS-based business model.

Calculating Gross Retention Rate

GRR is the rate of existing customers retained during a given period.

To calculate GRR, subtract your MRR at the beginning of the period from your downgraded MRR during the period. 

Further, subtract your downgraded MRR with your contraction MRR. Now, divide the result by the MRR at the beginning of the period. GRR = (MRR start – Churn – Contraction) / MRR

Improving Gross Retention Rate

An excellent method to boost your GRR is by giving your customers the opportunity to speak out about their concerns.

This can be done through surveys which will enable you to determine customer experience. The onboarding process plays a critical role here, ensure you have a solid onboarding process in place to retain more customers, and consequently revenue.

What Should You Focus On – NRR or GRR?

The debate over whether to pick NRR or GRR is tricky. 

Net Retention Rate might look like a better alternative as it considers two revenue streams: upsells and renewals. 

However, the Gross Retention Rate has a small advantage over NRR in that it measures the long-term health of any SaaS business. Keep in mind the below tips when deciding:

• NRR is a good metric for customer success when you are considering growth. It’s what you need to focus on finding the perfect product-market fit to attain a high GRR. A high GRR is only possible when your customers find your product useful and continue their business with you.

• Remember that when it comes to funding opportunities, your prospective investors will closely scrutinize your GRR. Between two businesses with high NRR, investors are more likely to place their bets on the business that has a higher GRR.

• NRR and MRR go hand-in-hand. So as you continue to chase growth and scale new heights, ensure that you are seeking a better market fit for your product.

• Regardless of whether NRR or GRR is the priority, track both metrics carefully. Make use of a holistic subscription billing solution to capture insights from the payment process for strategic decision-making. Such solutions can help you gather relevant data about your business’s expansion, contraction, and churned revenue.

• A good way of determining whether you are on the right path with your customer success metric is to determine the quality of NRR and GRR. While the standard benchmark varies across sectors, the closer your GRR is to 100%, the better the health of your company. Similarly, if your NRR is anywhere above 100%, your business is growing rapidly. 

Wrapping Up

Retaining existing customers should be at the top of the to-do list of any SaaS company.

GRR and NRR are not just calculations to measure dollar value. These metrics of customer success are crucial as they show you your customer’s journey and their success with your product/service.

Optimizing your NRR and GRR makes a world of difference when you are going for funding. To give your company the best chance of securing success, such customer success metrics should be explored and improved upon.

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Key Insights

• The buzz around RevOps continues to build, with companies adding new roles at a record pace

• One of the reasons why RevOps is gaining such unprecedented traction is its potential of bringing together different teams

• Businesses looking at unleashing the potential of RevOps must utilize the emerging trends for overall business transformation

In many of the fastest-growing B2B organizations, Revenue Operations or RevOps can be seen as the newest functional team.

A report by LeanData highlights that almost 58% of B2B organizations have put a dedicated RevOps team in place or are in the process of building one. 

RevOps can be defined as an organizational function dedicated to streamlining operational processes in order to provide alignment across the revenue journey, including sales, marketing, customer success, and support. 

Since the ultimate goal of any business is to increase revenue, it makes sense to have revenue operations as the main component of a company’s structure, influencing decisions made by all departments. 

So, with the continued rise of RevOps, what can we expect in 2022? Let’s take a look. 

The Top 5 RevOps Trends for Business Success in 2022 

1. The Rise in RevOps Job Titles

The RevOps role is fairly new and interesting. 

With the boom we see in tech startups, it is natural for companies to look for new roles to solve new business challenges. 

Job titles with the word “revenue” such as Director of Revenue Operations, VP of Revenue Operations, and Chief Revenue Officer have become a big trend on job posting platforms like LinkedIn

With new roles opening up in revenue operations, we see new technology for RevOps as well. Such technological innovation defines the very core of RevOps by ensuring that your teams, data, and processes are all in perfect sync. 

2. Decreased Focus on Historical Trends

Typically, those in RevOps had the option of looking at past data to evaluate and assess what to expect the following year. 

2020, however, was not your typical year. 

What it did teach us is that we cannot flip a switch and go back to “normal”. Instead, we adapted, incorporating external factors into our forecast, and developed a plan that optimizes growth. 

Organizations relying on historical data must take into account the rapidly-changing conditions and behave proactively to scale the success ladder with RevOps. 

3. Streamlining Processes with Automation

Your RevOps team cannot work without robust integration and automation backing up your technological stack. 

A unified tech stack will allow RevOps teams to be more efficient by providing transparency across all processes. It can help in better allocation of resources and increase the collaborative flow of work. 

Additionally, businesses can improve efficiency, fix revenue pipeline, and make more data-driven decisions with process automation. 

When different departments are looking at different numbers, it is even more difficult to align toward a common vision. Combating this problem requires automation that takes care of quality control processes.

4. Increased Focus on CAS

Customer Acquisition Security or CAS has become the new core area and focuses on eliminating the fast-growing problem of fake users and bots from customers’ funnels, campaigns, analytics, and CRMs. 

Even Sales and Business Development Representatives (BDR) teams can benefit from CAS by using it to clean up their CRM, helping them to reduce the time wasted on prospecting fake users. 

A White Ops survey shows how 22% of companies believe that at least 25% of their first-party database is populated by fake and fraudulent contacts. 

CAS can eliminate these problems, helping BDR teams to go after real leads who are most likely to convert. 

5. A Central Component of CX

While a necessary function of modern business, teams in marketing, sales, or customer success often tend to operate in silos. 

Furthermore, they don’t define success the same way. If salespeople are focusing on sales alone, those in marketing or customer success are relying on KPIs to measure their goals. 

RevOps recognizes the need for collaboration between these teams, in not just generating and maximizing revenue but also in enhancing the overall customer experience. 

As a unified team, RevOps is best positioned to deliver a stellar customer journey. 

The Road Ahead

As stated by Matthew Volm, CEO and Co-founder of Funnel IQ, RevOps is the glue that holds the entire go-to-market function together. 

Utilizing revenue operations within your organization will enable you to better align your teams, make way for unified data and a more sophisticated tech stack in order to streamline your processes for maximum agility. 

And as the unknown continues, there has never been a better time to make a change for the better. 

Key Takeaways

The market for sales-as-a-service continues to grow across the globe with major multinational and fortune 500 companies like Apple, Amazon, and Microsoft augmenting their in-house sales teams along with outsourcing sales operations to drive revenue and efficiency in operations. 

Key Insights

• With digitization opening more avenues than ever for customers to make a choice, it’s crucial for businesses to stay on the pulse of customer experience

• Creating a culture and practice of prioritizing customer engagement is easier to brainstorm than execute

• While many business ventures might still be averse to outsourcing this customer-facing function, there are clear benefits to doing so

• These range from a deeper understanding of the customer success space to industry-leading methodologies to execute customer success goals

Customer success may be a relatively new term, but growing customer expectations have solidified its significance to revenue growth and long-term success.

A report by Forrester highlights that customer success is on top of mind for many businesses, with 72% reporting it to be a priority.

In particular, the COVID-19 pandemic drove home its importance in protecting relationships with existing customers.

As the economic fallouts of the pandemic unfolded through constrained budgets, shifting business priorities, and disrupted operations, companies realized that a continuous race for the next sale was not sustainable. More important was nurturing the existing customer base beyond the point of sale.

A visible aspect of this shift is the value of trustworthiness in ensuring customer loyalty.

So, should you outsource customer success? To answer this question, one must look at what customer success does for an organization.

What are the Benefits of Customer Success?

Focusing on customer success involves tracking different kinds of value provided to the customer. A Deloitte research identifies three types of value that constitute customer success: performance value, business value, and experience value.

In the B2B world that we are in, getting the signature on the dotted line is only the beginning of the journey with customers.

• Customer Retention: Renewal decisions are based on perceived value. When you focus on customer success, you help your customers realize more value in your products and services. This leads to increased renewal rates and longer customer tenures, both of which increase a customer’s lifetime value and help you drive growth and profitability.

• Increased upsells and cross-sells: As per a report, vendors are 60-70% more likely to sell to existing customers rather than selling to new customers. Existing customers are also more likely to have undertaken integrations that maximize the value to be drawn from greater engagement with related products and services. It is precisely this advantage that customer success secures by increasing the likelihood of customer satisfaction.

• Operational Improvement: Focusing on customer success increases customer predictability. It provides you detailed insight into developing issues. It will also help you uncover drivers of that outcome, which will help you with recurring revenue predictability and capacity planning.

• Increased Revenue: Customer success is not just about keeping revenue in the business. It also helps generate more revenue at a lower cost. Customer success provides a mechanism for not only creating these chances but also capitalizing on them.

Why Should You Outsource Customer Success?

It might make more sense for you to outsource more transactional engagements such as customer service or customer support rather than outsourcing a long-term, relational role like customer success.

What is important is to acknowledge that outsourcing customer success does come with its fair share of challenges. Despite these challenges, however, outsourcing key customer success activities can contribute in several ways to revenue and growth.

1. Cost Savings

An obvious advantage of outsourcing is cost savings. But this advantage is often misperceived as resulting from hiring low-paid offshore customer success representatives.

Such misperceptions only consider the salaries as part of the costs of building a customer success team. But there are numerous other hard and soft costs such as facility, equipment and technology, travel, recruitment and training, and management costs.

By outsourcing all or part of the customer success function, companies can save on operational costs related to onboarding and training, renting and maintaining office space, management costs, and investing in the latest tools and technology stacks.

2. Skilled Representatives

When you have an in-house team, it can take months or even years to build the kind of high-quality team you have in mind for long-term success. While it might look rewarding, you are putting years of resources and thousands of dollars into building such expertise.

With outsourced customer success, you receive a top-notch crew whose sole responsibility is to provide excellent customer support. Such a team is better equipped to ensure that there is no lag in customer experience.

3. Access to leading technologies

A 2021 report by Talkdesk highlights that while customers want to talk more and for longer, they are not willing to wait on hold for longer than a minute.

Reputable outsourced customer support vendors understand this shift.

An outsourced customer success team will ensure that processes are in place to reduce average wait time (AWT). They have dedicated QA auditors to coach agents on how to minimize “dead time” between calls.

4. Effective Management

An in-house team can cater to high-value customers. However, real growth requires customer success at scale, catering to all segments of customers.

Most companies are likely to have a large segment of long-tail customers who cannot be converted into high-growth customers because of a lack of bandwidth among in-house customer success teams.

Outsourcing the long-tail customers can help organizations move beyond an 80-20 trap in their revenue generation and grow a much larger base of valuable customers.

5. Focus on Core Competencies

Customers are the key to success for any organization. Nevertheless, customer support may not be one of the core competencies of your venture.

Outsourcing customer success can help you focus on what your company does best, without sacrificing customer satisfaction in the process. And this can happen without a huge upfront investment of resources.

Finding the Right Outsourced Customer Success Partner

Pearsons’ Marketing Metrics: The Definitive Guide to Measuring Marketing Performance shows that the probability of selling to an existing customer is up to 14 times higher than the probability of selling it to a new one. 

By bringing an outsourced customer success team, you are better equipped for future growth. The sooner you establish a reliable partnership in this important business segment, the easier it will be for you to master future challenges.