Let’s face it. We’ve all been an egg in the “churn scramble”. (Or the burnt toast, depending on how you look at it.)
When it comes to churn mitigation, there are so many factors that live outside of our control, that our Customer Success department decided very early on, that we would harness the one factor that we did have control over: time.
FloQast has always taken an “all hands on deck” approach towards red customers, but what matters the most is how much consistency and early detection play a role in that success as well.
Here is what that means for us:
- When the customer reaches the end of their implementation period, the CSM handoff takes place over an “Optimization Call”. After this call, the CSM provides the customer’s first health score designation based on overall sentiment. This includes their benchmark of usage, the customer’s general proficiency and comfort level with technology, any changes that have occurred in their business since the start of implementation, how engaged they were in reaching their goals, etc.
- This health score change in Salesforce sends an email alert to CS Management noting the old value, new value, and the reason for the change. This allows CS Management to step in and support the CSM with a churn mitigation strategy ten months prior to the first renewal.
- During the Optimization Call, we also take a very direct approach to understanding customer expectations. This ensures all CSM’s have a level playing field to meet the customer’s needs, and that we are able to set ourselves up for success throughout the customer’s first-year journey.
- Why did you become a FloQast Customer?
- What will be the most valuable to you?
- What expectations do you have of your Customer Success Manager?
- What will justify a renewal at the end of your term?
This makes certain that we have an understanding of our customer’s experiences in working with other software companies, for better or for worse, and allows us to exceed those expectations right at the beginning of the relationship.
In the event that the customer exits the Optimization Call with a red health score, and a churn mitigation strategy is set in partnership with the CS Management team, the CSM is expected to provide updates to that account record on a bi-weekly basis, and discuss with their manager during 1x1’s.
These bi-weekly updates and 1x1 discussions allow us to take creative approaches to reach our customers that may be out of the norm and make iterative adjustments to the strategy on a bi-weekly basis. This is another reason why starting that conversation a minimum of ten months out (longer for multi-year contracts), and having time on our side, makes all the difference.
These early detection efforts may seem exhaustive from a CSM perspective, but it’s this extra attention and care to our red customers that have gotten FloQast to an average 5-9% churn rate every quarter since the inception of our company (including during COVID) and one of the key components to our Customer Success team recently being awarded Customer Service Department of the Year.