current
Failing Software Customer Success
Despite increased investment, software customer success is failing due to a mismatch between vendor support and customer needs, particularly in technical implementation.
Timeframe
near-term
Categories
Impact areas
Detailed Analysis
Software companies are facing a decline in customer retention despite increased investment in customer success. The report reveals that "net revenue retention rates have declined for 75% of software firms." This is attributed to a disconnect between vendor support and customer priorities. Customers value technical implementation assistance, while vendors often prioritize other activities. Leading firms are addressing this by developing clear customer journey blueprints, redefining post-sales roles, coordinating frontline teams, leveraging AI for process improvement, and empowering customers with self-service tools.
Context Signals
Increased spending on customer success by software companies.
Growth in customer success teams and specialized roles.
Pressure to reduce IT costs and increased scrutiny of internal budgets.
Edge
Companies that prioritize technical implementation assistance and align with customer needs will improve retention.
Generative AI can be transformational in customer success, but only with a well-defined customer journey blueprint.
Outcome-based success plans and clearly defined post-sales roles will become increasingly important.
