“Customer acquisition costs continue to escalate, so for a lot of SAAS businesses, keeping their customers is paramount for survival!” says Robin Martin - VP of Sales and Customer Success, Cobalt.

It's not merely a buzzword; Customer Success is gaining a fundamental shift in how businesses approach relationships. As we delve into Gartner's predictions for 2024, it becomes increasingly evident that customer success is not just a trend but a strategic imperative for organisations across industries.

Functions which bring on new business will always be important, however, with downturns in the market and restrictions on spend, companies are looking to retain, capitalise and nurture their existing clients.

Understanding Customer Success

At its core, customer success is a proactive approach to ensure customers achieve their desired outcomes while using a product or service. It goes beyond traditional customer service, which primarily reacts to issues as they arise, to anticipate and address customer needs before they become problems.

Oakstone Divisional Director Tristan Heywood highlights that the function of customer success depends on the size of the business, “for start-ups, customer success is about delivery and adoption; for more established businesses, customer success should be about adoption, retention and growth.”

The CS division involves understanding customers' goals, providing ongoing support and guidance, and continuously measuring and optimising their experience. This approach not only fosters loyalty but also drives revenue growth through upselling, cross-selling, and referrals.

“Focus on Customer Success is primarily around reducing churn.” Robin continues, “If you can keep the number of customers who leave you to a minimum, this gives you a platform to build a high-growth business.”

Gartner's Predictions

Gartner, a leading research and advisory company, has been at the forefront of identifying emerging trends and providing valuable insights for businesses. In its predictions for 2024, Gartner highlights several key trends that underscore the growing importance of customer success:

• Shift from Reactive to Proactive Support: Gartner predicted that by 2024, 70% of customer interactions will involve emerging technologies such as AI-driven chatbots and virtual customer assistants. These technologies enable organisations to deliver proactive support by anticipating customer needs and providing timely assistance.

• Personalisation at Scale: Another significant prediction is the increasing emphasis on personalisation at scale. By 2024, Gartner estimated that 80% of customer service organisations will have abandoned native mobile apps in favour of messaging for a better customer experience. This shift towards messaging platforms allows businesses to deliver personalised interactions based on customer preferences and behaviour.

• Focus on Customer Outcomes: Gartner also emphasises the importance of aligning customer success efforts with business outcomes. 60% of customer success organisations will directly contribute to the formation of business strategy, driving revenue growth and profitability. This strategic alignment ensures that customer success becomes a central pillar of organisational success rather than just a support function.

• Rise of Customer Success Metrics: In line with the shift towards outcome-focused customer success, Gartner predicted that by 2024, 75% of customer success organisations will use advanced analytics to predict and optimise customer lifetime value. These metrics go beyond traditional measures of customer satisfaction to quantify the long-term impact of customer success efforts on business performance.

What does this mean?

The implications of Gartner's predictions are clear - businesses must prioritise customer success to remain competitive in a rapidly changing landscape. Here are some key takeaways for organisations looking to leverage these insights:

• Invest in Technology: Embrace emerging technologies such as AI, machine learning, and analytics to deliver personalised and proactive customer experiences. By leveraging these tools, businesses can anticipate customer needs, automate routine tasks, and provide timely support at scale. Robin says, “CS Technology is a little way behind the huge outlay & availability of customer acquisition technology, but it is & will continue to grow as more organisations try to crack the code on reducing churn.”

• Empower Customer Success Teams: Equip your customer success teams with the tools, training, and resources they need to succeed. Empower them to take a proactive approach to customer engagement, focusing on driving tangible outcomes for both the customer and the business.

• Align with Business Goals: Ensure that your customer success efforts are closely aligned with broader business objectives. By tying customer success metrics to key performance indicators such as revenue growth, profitability, and customer lifetime value, you can demonstrate the strategic impact of your initiatives. “I have seen quite a few SaaS companies realise their CSM Leadership requirements have changed in the current market landscape, so many are hiring leaders who can be more hands-on.” – Tristan adds.

• Embrace a Culture of Continuous Improvement: Customer success is not a one-time initiative but an ongoing journey of learning and adaptation. Encourage a culture of continuous improvement within your organisation, where feedback is valued and processes are constantly refined to better serve the needs of your customers.

Traditionally, senior-level hires were restricted to C Level leadership, sales, and marketing with a huge emphasis on new business.  Oakstone is witnessing a shift in businesses that are hiring CS leadership to drive the retention and upselling of clients who already understand the value and ROI of the businesses they’re working with.

“Customer Success is also the role that organisations use to demonstrate the value that the solution has delivered. Gone are the days where organisations would invest 6/7 figure sums and have it left as shelfware. Adoption & ROI are critical to ensure customers stay with you. If you can build a bunch of happy customers, it’s also easier to attract new ones!” – Robin adds.

How can you develop your CS team?

Customer success embodies a range of functions, and it’s important to “be clear about whether your requirement is a commercial (revenue focused) customer success hire or one who is focussed on adoption and retention. Typical profiles coming into customer success vary from sales and those coming from implementation, delivery, or post-sales. Hiring is never a one-size-fits-all approach.” – Tristan explains.

In conclusion, Gartner's predictions for 2024 underscore the growing importance of customer success as a strategic imperative for businesses. By embracing proactive support, personalisation at scale, and outcome-focused metrics, organisations can drive meaningful results and foster long-term customer relationships in an increasingly competitive marketplace. As we look ahead, one thing is clear: the rise of customer success is not just a trend but a transformational shift that will define the future of business.

About our contributors

Robin Martin has extensive work experience in the technology industry. Currently, Robin is the VP of Sales & Customer Success-EMEA at Cobalt, where they oversee a SAAS platform that modernizes traditional pentesting. Prior to this, Robin held the position of VP EMEA at LastPass, where they provided password and identity management solutions.

Tristan Heywood joined Oakstone in 2000 and has progressed through the company, leading our London operation since 2007. His commitment to projects on behalf of our clients and dedication to assisting our candidates with their careers has led him to become a cornerstone of our business, and he is widely renowned in our sector as a true expert in his field. Tristan particularly enjoys working with early-stage technology companies, helping them identify the people to take concepts into the commercial market and build a brand.