Tech might be a graveyard, but don’t kill the CSM.
When companies face financial difficulties, one of the first things they may consider is reducing costs by cutting staff. However, it is crucial for companies to carefully evaluate which positions to cut and which ones to keep, especially in customer-facing roles such as customer success. Here are a few reasons why companies should not cut customer success from their budget when going through layoffs:
Customer Success is critical for customer retention.
Customer success is responsible for ensuring that customers achieve their desired outcomes while using a product or service. When customers are successful, they are more likely to renew their subscriptions or make additional purchases, which directly impacts a company's revenue. If customer success is cut from the budget, it can negatively impact customer satisfaction and retention, which can ultimately hurt the company's bottom line.
Customer Success provides valuable feedback.
Customer success teams work closely with customers and have a deep understanding of their needs and pain points. This feedback is critical for product development and can help companies improve their offerings. If customer success is cut from the budget, companies may miss out on valuable insights that could lead to better products and services.
Customer Success can help companies navigate difficult times.
During times of uncertainty, such as a global pandemic or economic downturn, customers may need more support and guidance than ever before. Customer success teams can play a crucial role in helping customers navigate these difficult times and continue to achieve success. If customer success is cut from the budget, companies may struggle to provide the level of support and guidance their customers need.
Customer success is a long-term investment.
While cutting costs may provide short-term relief, it is important for companies to think about the long-term impact of their decisions. Investing in customer success can lead to long-term benefits, such as increased customer satisfaction, retention, and revenue. If customer success is cut from the budget, companies may miss out on these long-term benefits and struggle to recover in the future.
Whenever possible, CS should be one of the last places to cut from their budget when going through layoffs because it is critical for customer retention, provides valuable feedback, can help companies navigate difficult times, and is what helps maintain a feeling of stability for customers. While cost-cutting may provide short-term relief, it is important for companies to carefully evaluate the impact of their decisions on their customers and their long-term success, and the negative optics of removing the face(s) of your company.
