SaaSy Talk Unfiltered: The Journey from Sales to Customer Success
Insights from Justin, VP of Customer Success at Housecall Pro
S01.E23
I recently had the pleasure of speaking with Justin, VP, Customer Success at Housecall Pro. We delved into his journey from a sales background to customer success, the challenges and learnings he encountered along the way, and his thoughts on building a successful customer success team in early-stage companies. Justin also shared his insights on balancing customer acquisition and retention, the role of metrics and incentives in customer success, and the potential impact of AI in the field.
Guest's Journey into the Tech Industry
Justin's journey into the tech industry was not a direct one. Coming from a sales background, he initially focused on sales roles in logistics and fashion companies in New York City. However, the pervasive presence of technology in the city gradually piqued his interest, leading him to explore opportunities in the tech industry. Justin eventually joined a sales enablement solution company, which marked the beginning of his transition into customer success.
"I don't think tech was really ever the focus necessarily. It was sales predominantly… But being in New York City 10 years ago, and you're just in the middle of the buzz of all the technology that is being talked about, and it's everywhere… It became a louder noise in my ear. And eventually, I had to scratch that itch."
Challenges and Learnings from Early Career Experiences
Reflecting on his early career experiences, Justin shared a valuable lesson he learned while working for a health supplement company during college. Balancing work and college life was challenging, and he often felt isolated in the small store where he worked. However, he realized that the job taught him important skills in sales and professionalism, which he now appreciates.
"At the time, I would have said this is horrible. This is the worst thing ever… But now, I'm grateful that I did that and it afforded me the opportunity to learn… I learned a lot about myself pretty quickly too, probably more than the classroom education or the street education."
Transition from Sales to Customer Success
Transitioning from sales to customer success may seem like a significant leap, but Justin found the transition smoother than expected. He highlighted the similarities between the two roles, emphasizing the importance of active listening, problem-solving, and tying solutions to customer needs. Justin believes that the skills he honed in sales, such as building relationships and understanding customer pain points, were transferable to customer success.
"I think CS is not so far off from what sales is doing… We're working to identify problems, doing good discovery, asking questions, and tying solutions to problems… CS is about speaking with the same level of conviction and treating the customer as the only person in the room."
While Justin found the transition from sales to customer success relatively seamless, he acknowledged the value of individuals transitioning from customer success to sales. Building confidence, understanding customer needs, and gaining wins in customer success can provide a strong foundation for a successful transition to sales.
"We find a lot of success in people in our CS org who are making their way into sales… They've built their confidence, learned how to communicate with customers, and now they want to go do that in a different way."
Balancing Customer Acquisition and Retention
In the world of SaaS, customer acquisition has traditionally been the primary focus. However, with changing economic conditions and a growing emphasis on customer success, the balance between acquiring new customers and retaining existing ones has become crucial. Justin shared his perspective on striking the right balance and highlighted the importance of having a strong mission that aligns customer acquisition and retention.
"If you've got a good mission, then the notion between having to make a decision on whether I'm acquiring new customers or trying to have less customers leave every month, it's almost the same thing… It's more about obsessing around our pros and understanding their needs."
Justin emphasized the need to obsess over customers' success and adapt the focus on acquisition or retention based on the current circumstances. By understanding customer needs and providing the necessary support, customer success teams can contribute to both acquisition and retention efforts.
Metrics and Incentives in Customer Success
Metrics play a crucial role in measuring and managing customer success. Justin stressed the importance of clear metrics and aligning frontline success metrics with overall business metrics. He highlighted the significance of revenue-related metrics, such as net dollar retention and lifetime value, in driving customer success outcomes.
"We start to have an emphasis more around this notion of net dollar retention and lifetime value… We've been able to establish a strong reporting around revenue per customer, customer engagement scores, and these are things that we've been able to get good buy-in on.”
While revenue is an essential component of customer success, Justin also emphasized the value of other metrics, such as customer engagement scores and customer satisfaction, in driving success. He highlighted the need for a comprehensive approach to metrics that aligns with the goals of the customer success team.
Building a Customer Success Team in Early-Stage Companies
For early-stage companies, building a customer success team is often overlooked in favor of sales and product development. However, Justin emphasized the importance of including customer success from the early stages and outlined the composition of an effective customer success team.
"Get a CS manager in there… Get somebody who's just thinking about the problem, who's just creating visibility on it… Get somebody who's that escalated path, who's willing to speak to a customer… Just continue to echo the brand and the mission."
Justin recommended having a dedicated onboarding specialist, a customer success manager, and an escalation path in the early stages. By focusing on customer success and building a strong foundation, companies can lay the groundwork for long-term growth and customer satisfaction.
The Role of AI in Customer Success
Artificial intelligence (AI) is rapidly transforming various industries, and customer success is no exception. Justin expressed excitement about the potential of AI in customer success but also acknowledged the need for education and understanding of its capabilities. He emphasized the importance of leveraging AI to better serve customers and make informed decisions.
"I'm excited about the idea of AI… I think the more that we can educate ourselves and our customers about it, the more we can see how it can benefit us and our customers… It's about using these types of software to better serve my customers faster, with a higher success rate."
While Justin acknowledged some apprehension around AI, he emphasized the need to embrace the technology and explore its potential in enhancing customer success efforts.
Conclusion and Future Outlook
Justin's journey from sales to customer success highlights the transferability of skills and the importance of a customer-centric approach. Balancing customer acquisition and retention, leveraging metrics and incentives, and embracing emerging technologies like AI are key considerations for successful customer success teams. As the field continues to evolve, companies must prioritize customer success from the early stages and build teams that champion their customers to success. With the right mindset, strategies, and tools, customer success can become a driving force behind business growth and customer satisfaction.
See all the episodes on Ricky and Sean’s channel
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any company mentioned.
