This week's Newsletter:
What kind of churn you have?: Find Out Now
Article: 3 Reasons Why Companies Don't Measure Customer Results
Article: Clayton Christensen Unlocked the Secret to Retention
Quote of the week: The most essential practice for customer success is...
THE TOP 10 REASONS TO MEASURE YOUR CUSTOMERS' RESULTS:
📶 Our research shows that customers who achieve measurable results stay 6 TIMES LONGER than customers who don't, and for customers who get good results it's 10 TIMES!
That's why measuring customer results is the most important thing companies can do to dramatically reduce churn and reignite growth.
👎 But, astonishingly few companies actually do it!
✅ That's why measuring customer results has to be the TOP PRIORITY in 2024.
HERE ARE MY TOP 10 REASONS TO MEASURE CUSTOMER RESULTS:
1️⃣ Customer results are the ultimate indicator of account health and are essential to predicting and preventing churn.
2️⃣ Measuring results is a powerful way to reestablish and maintain customer leader engagement.
3️⃣ Measuring the customer's results builds trust by demonstrating that you’re sincere about partnering for their success.
4️⃣ Measuring results is its own result because it enables customers to track important outcomes they often haven't been able to measure previously.
5️⃣ Measuring results motivates the customer to make the key behavior changes that are necessary for success.
6️⃣ Regularly reviewing measured results lets you hold customers accountable for their behavior change commitments.
7️⃣ Measuring results empowers your champion to demonstrate value to their leaders.
8️⃣ Measured customer results are the best protection you can have when customer leaders leave and new ones arrive.
9️⃣ Measuring reveals your ideal customers by demonstrating which customers you can make the most successful.
🔟 Measuring customer results provides invaluable insight into your product's real value to share with your product team to guide the product roadmap.
There are many more good reasons, but that's a solid start.
The Key to Reducing Churn is Knowing What Kind You Have
There are different kinds of churn and knowing which kind you have unlocks the power to crush churn for good! I'm offering subscribers to this newsletter a free consultation to show you how to find your churn type. Click the button to schedule your session and start getting ahead of churn in 2024.
WHY DON'T COMPANIES MEASURE THEIR CUSTOMERS' RESULTS? Here are the TOP 3 REASONS I've seen ↓
Companies that systematically measure their customers' results vastly outperform others in customer retention and growth. Results-Led-Growth is hands-down the ultimate winning strategy! 🏆
🤔 Which is why it boggles my mind how few companies actually do it!
After many years of helping companies measure and materialize customer results at scale, here are the main reasons I've seen why companies aren't doing it...
⓵ THEY DON'T KNOW THEY SHOULD BE TRACKING RESULTS
The vast majority of companies are unaware that this is something they should be doing because most still believe in the myth of "customer satisfaction."
They don't know that research reveals "happy" customers stay no longer on average than "unhappy" customers, whereas customers with measurable results stay 6-10 TIMES LONGER than those without.
They don't know that the real cause of most customer churn is the failure to achieve or perceive results. I regularly see companies quickly and dramatically reduce churn when they switch their focus from satisfaction to results.
⓶ THEY DON'T KNOW WHAT THE RESULTS ARE
As soon as a company realizes it needs to measure customer results, it faces another obstacle: most companies don't have a clear understanding of the true business results that the product produces.
📈 Business Results are → measurable benefits that are important to the success of the business. 💵
No product consistently produces more than a small number of true business results for customers. Yet, remarkably few companies have articulated their results clearly enough to operationalize measuring them.
The best place to start is with the most successful customers, many of whom are measuring their results independently. Study these customers to understand what the key results are, how to measure them, and what it takes to achieve them.
I help my clients do this by creating what I call the "Customer Results Framework." (Click "Contact > Free Consultation" above if you'd like me to send you my template and show you how to create one for your company.)
⓷ THEY DON'T HAVE THE ABILITY TO MEASURE THEM
Knowing what your key business results are is not enough to win. You ultimately have to measure them - continually - for every customer.
📊 Research shows that measuring results is even MORE IMPORTANT than achieving results. Customers who are measuring but achieving poor results still stay TWICE AS LONG as customers who aren't measuring at all!
The problem is that most products were designed for their FEATURES and not with measuring RESULTS in mind. (No, a "report module" is not the same thing.)
👉 The most important feature of any product is to measure the results it produces for customers. 👈
But even if the product is lacking, companies can often build effective customer results tracking using available data and tools.
17 YEARS AGO, CLAYTON CHRISTENSEN REVEALED THE SECRET TO CUSTOMER RETENTION →
Legendary business professor Clayton Christensen is famous for his "jobs to be done" concept. But few understand how profoundly he answered the question, "Why do customers stay?" It only took him 3 SENTENCES and 57 WORDS to reveal the simple secret:
There's a metric ton of insight in this pithy statement. Here's how I break it down...
⓵ CUSTOMERS COME TO GET RESULTS
Customers DON'T sign up to achieve SATISFACTION, HAPPINESS, DELIGHT, or any other emotion! That's why NPS and other surveys of those feelings don't predict retention at all.
⓶ CUSTOMERS STAY TO GET RESULTS
If your customers achieve their results with your product, they'll stay to do the "same job" again. My research on millions of customer retention data points shows this is the WHOLE GAME! Customers who achieve measurable results stay 6 TIMES LONGER than those who don't.
⓷ CUSTOMERS LEAVE WHEN THEY NO LONGER HAVE A COMPELLING REASON TO STAY
It's a waste of time asking customers why they canceled. The truth is that they nearly all leave for the same reason: they aren't getting results, or they are not anticipating getting more results.
⓷ THE IDEAL CUSTOMER IS WHO GETD THE BEST RESULTS
Only one simple question is needed to identify your Ideal Customer:
👉 Who can get the best results with your product? 👈
This is the ICP. Whatever type of customer gets the best results will pay the most, close the fastest, and stay the longest. Every other customer contributes to your churn and costs. The winning strategy is not broad; it's narrow: DOMINATE YOUR ICP SEGMENT!
Clayton passed away four years ago, and I sincerely miss both his immense intellect and his truly inspiring goodness!
QUOTE OF THE WEEK:
The most essential practice of effective customer success teams is systematically measuring and materializing customer results.
