🤗 Embracing the Success community
Q: Can you share your journey into customer success and what you’re currently doing in this field?
A: I spent the first ten years of my career in marketing, moving from publishing and advertising into field marketing and online marketing with a focus on SEO. I used BrightEdge for search engine optimization at The Knot and AJ Madison, where I became an expert user and eventually joined their customer success team when they opened a New York office in 2012.
I didn’t have a background in CS or tech, but my expertise in their product and industry made me a valuable asset. Over five and a half years, I rose from CSM to VP of Customer Success and Practice Development, building and scaling their CS team. I then moved on to transform CS at several companies before joining ClientSuccess over three years ago, where I oversee the post-sales motion, focusing on retention, growth, and advocacy.
My background in marketing has also allowed me to contribute significantly to our marketing efforts, leveraging my brand and experiences to support our strategies. Outside my day job, I’m heavily involved in the CS community through podcasts, consulting, and educational initiatives, helping to advance the field.
👑Top Obstacles for CS Leaders
Q: What do you think are the biggest challenges CS leaders are facing right now?
A: The biggest challenge is scaling value realization. While automation and technology can drive activity, ensuring that this activity translates into actual value for customers at scale is difficult. When managing a large number of customers, it’s challenging to maintain deep, consultative relationships that uncover and realize value effectively.
CS leaders are grappling with how to define and measure value, ensure it’s recognized by customers, and leverage technology to support these efforts. The focus on AI and automation stems from the need to scale these value-driven interactions, but the underlying challenge remains: delivering meaningful value consistently across a diverse customer base.
🤩 The role of AI and automation
Q: Where do you see AI and automation fitting into the future of customer success?
A: I believe every customer journey should be designed as a digital model, adding human interaction only where it adds real value. Traditionally, CS models started with a white glove approach and then scaled back as customer numbers grew. I propose flipping this model: start with automation and digitization, and add human touchpoints strategically where they enhance the customer experience.
I frame AI’s role in CS around the five P’s:
- proactive,
- predictive,
- productive,
- prescriptive,
- and personalized.
AI should help us anticipate customer needs, provide actionable insights, streamline processes, offer tailored recommendations, and create personalized experiences at scale. While AI in CS is still evolving, it holds immense potential for transforming how we deliver value to customers.
🤝Skills for future CSMs
Q: What advice would you give to new CSMs entering the market, especially concerning AI?
A: AI won’t replace customer success managers, but CSMs who understand and leverage AI will thrive. It’s crucial to stay informed about AI’s capabilities and learn how to use it effectively. The key value CSMs bring is their ability to be consultative, which will increasingly require subject matter expertise. Technology will handle many routine tasks, so CSMs need to deeply understand their customers’ industries and challenges to provide valuable insights and guidance.
Being a subject matter expert allows you to offer consultative value that technology can’t replicate. This shift will likely lead to a greater emphasis on industry-specific knowledge within the CS profession, enabling CSMs to deliver higher-value interactions.
🚀 Effective customer segmentation
Q: What is your view on effective customer segmentation?
A: ARR alone is insufficient for effective segmentation. At ClientSuccess, we use a Success Probability Score based on 11 factors that define a customer’s potential for success with our platform. These factors include the CS leader’s experience, the company’s previous use of CS software, team size, data quality, and more. This scoring helps us tailor our engagement strategies to each customer’s specific needs and potential.
Customers are segmented into three categories: Educate, Enable, and Empower. This segmentation allows us to provide targeted support based on where they are in their journey and what they need to achieve success. This approach ensures that we engage customers in ways that are most relevant and valuable to them.
🛠️Churn reduction and growth
Q: What strategies do you employ for churn reduction and upsell/cross-sell?
A: We focus on tracking and achieving customer goals through our platform. Instead of arbitrary metrics, we monitor whether customers are meeting their specific goals, which we integrate into our health scores. We also conduct Platform Success Audits (PSAs) twice a year, providing detailed scorecards and recommendations to help customers maximize value from our product.
These audits help customers understand where they can improve and what additional opportunities they can leverage. Additionally, I maintain regular contact with customers through automated yet personalized outreach, ensuring they feel supported and valued throughout their journey.
😃 Measuring Success
Q: How do you measure the success of your CS initiatives?
A: We track three key adoption metrics: Pulse engagement, success cycles, and feature adoption.
These metrics indicate how deeply customers are integrating our platform into their workflows, which correlates with retention and success. We also focus on whether customers are achieving their goals and the outcomes of our PSAs.
Behavioral health scores help us identify risks early, based on customer engagement patterns. This proactive approach enables us to address issues before they lead to churn and ensure customers continue to see value in our platform.
🙋 Gathering customer feedback
Q: How do you gather and utilize customer feedback?
A: We use NPS, CSAT, and direct feedback from customer interactions. NPS responses are shared company-wide through Slack, ensuring transparency and collective awareness. Product feedback is entered into our Product Signals system, which integrates with our roadmap and tracks the feedback’s lifecycle, enabling us to manage communication and implementation effectively.
We proactively solicit feedback during regular interactions, ensuring we capture comprehensive insights into customer needs and satisfaction. This approach allows us to continuously improve our offerings and address customer concerns promptly.
🧘♀️ Work-life balance
Q: How do you maintain a healthy work-life balance?
A: I prioritize non-negotiables like health, fitness, and family. I exercise every morning at 5 a.m., ensuring it doesn’t disrupt my day or family time. I’m committed to being present for my family, attending important events and making memories.
Balance is about prioritization rather than trying to do everything equally. I recognize when I need to recharge and adjust my schedule accordingly, giving myself grace when necessary. Understanding your values and setting boundaries based on them is crucial for maintaining a sustainable work-life balance.
💬 Final Thoughts
Q: Any closing thoughts or additional insights?
A: We covered a lot of ground today, and I hope these insights help others in their customer success journeys. Remember, CS is about continuous learning and adaptation. Embrace new technologies, stay customer-focused, and always prioritize the human element in your strategies.
🔖 Resources and recommendations
For further reading and resources, check out Kristi’s favorite books, podcasts, and tools on her website.
Kristi Faltorusso highlights the importance of scalable value realization, the strategic use of AI and automation, and the critical skills needed for future CSMs. Her approach to customer segmentation, churn reduction, and maintaining work-life balance provides valuable lessons for CS leaders and practitioners alike.
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