Robert Statsky

I thought it would be interesting to see if AI could develop an entire department for me and develop the strategy for how to best execute a Customer Success Strategy at a B2B SaaS company.

I have curated some answers for clarity but the meat of the content was all generated via Open AI’s Chat GPT prompt tool.

I’m taking the position of a founder of a SaaS business who has decided they want to start a CS function at their company.

Do this on your own, and if you are a founder, I encourage you to run through this exercise to allow you to see if you missed anything, or at least give yourself a starting point if you do not even have a customer team. That said, I would not suggest using AI to replace the department. We are not there yet and neither are these AI tools. I have not seen auto-generated copy replace the experience a customer will need to interact with your company in a successful way.

“But Rob we have chat bots?!?”

Ask yourself if that is the best experience for your product or service? If not, continue to hire people to manage these programs, but allow them to up-level and maximize their impact with the addition of AI.

I strongly believe AI won’t replace Customer Success, but it will further enhance it. If the true mission of Customer Success is to demonstrate the value of your product or service to a customer, then having trained professionals capable of helping customers interact with your technology is paramount to everything you do. CSMs allow people to more seamlessly integrate their processes with technology. Who better to help usher in a new era of AI and technology than people who’s sole job has been making other humans more comfortable with technology? But that’s a different post.

Below are the prompts I used to get started.

Prompt #1:

I am the founder of a SaaS company and I need to start a Customer Success Department. How should I do that?

Starting a Customer Success Department for your SaaS company is a strategic move to enhance customer satisfaction, retention, and overall success. Here’s a step-by-step guide to help you establish an effective Customer Success Department:

1. Understand Your Customer Base:
   • Conduct a thorough analysis of your customer base. Segment customers based on factors like usage patterns, industry, and business size. Understand their needs, pain points, and expectations to tailor your Customer Success strategies.
2. Establish Customer Segmentation:
   • Segment your customers based on their needs, preferences, and usage patterns. This segmentation will allow you to tailor your Customer Success approach, ensuring that each customer receives personalized attention and support.
3. Monitor Customer Churn and Retention:
   • Regularly analyze customer churn rates and retention metrics. Identify patterns and reasons for churn to address underlying issues. Implement strategies to increase customer retention and extend customer lifetime value.
4. Define Your Customer Success Goals:
   • Clearly define the objectives of your Customer Success Department. Identify key performance indicators (KPIs) that align with overall business goals, such as customer retention, upsell opportunities, and customer satisfaction.
5. Develop Customer Onboarding Processes:
   • Design a structured onboarding process to ensure customers get value from your SaaS product quickly. Provide educational resources, conduct onboarding sessions, and guide customers through initial setup to maximize their success.
6. Build a Proactive Support System:
   • Develop a proactive support system that includes regular check-ins, product updates, and educational content. Anticipate customer needs and address issues before they become major challenges. Proactive engagement fosters a positive customer experience.
7. Establish Customer Feedback Mechanisms:
   • Implement mechanisms for collecting customer feedback, such as surveys, interviews, and user forums. Use this feedback to identify areas for improvement, understand customer preferences, and refine your product and services.
8. Collaborate with Sales and Marketing:
   • Foster collaboration between Customer Success, Sales, and Marketing teams. Align strategies to ensure a seamless customer journey from acquisition through onboarding and ongoing success. Share insights to enhance the overall customer experience.
9. Hire the Right Talent:
   • Recruit individuals with a strong background in customer success, account management, and SaaS. Look for candidates who are empathetic, communicative, and passionate about ensuring customer success. Consider hiring Customer Success Managers, Account Managers, and Customer Support Representatives.
10. Create Customer Success Playbooks:
    • Develop playbooks for various customer scenarios, including onboarding, expansion opportunities, and issue resolution. These playbooks serve as guidelines for your Customer Success team, ensuring consistency in their approach.
11. Create Customer Health Metrics:
    • Define key metrics to assess the health of customer accounts. This may include product usage, customer engagement, and Net Promoter Score (NPS). Regularly monitor these metrics to proactively identify at-risk customers.
12. Implement a Customer Success Platform:
    • Invest in a Customer Success platform or Customer Relationship Management (CRM) system to centralize customer data. This will enable your team to track customer interactions, monitor health scores, and identify areas for improvement.
13. Invest in Continuous Training:
    • Provide ongoing training for your Customer Success team to keep them updated on product features, industry trends, and best practices. Continuous learning ensures that your team remains well-equipped to meet evolving customer needs.
14. Iterate Based on Data and Feedback:
    • Continuously iterate and refine your Customer Success strategies based on data, customer feedback, and changing market conditions. Stay agile and adapt your approach to meet the evolving needs of your customer base.
15. Celebrate Customer Success:
    • Celebrate customer successes and milestones. Recognize and reward customers who achieve significant outcomes with your SaaS product. This not only strengthens customer relationships but also showcases the value of your solution.

By following these steps, you can establish a robust Customer Success Department that plays a pivotal role in driving customer satisfaction, loyalty, and the overall success of your SaaS company.

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I re-ordered the above steps in a more practical sense, but the content was entirely generated by Chat GPT. I found the steps they gave all very helpful, but there’s a particular order for execution that I would follow if we were starting entirely from scratch.

When you hire a leader to manage this function, much of that person’s experience and understanding will shine through in their ability to execute the above 15 steps. Understanding what to do is much different then how you actually implement it.

There are so many different ways to build this engine, but doing it in the right way will ensure it functions properly.

For example, if you decide you immediately want to spend money on software, you might not be anywhere near ready to implement it or get your team to actually use it in a meaningful way. Get through the other listed steps first before you go down the road of spending more or hiring more.

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Prompt #2

Now that I have built out the foundation of a Customer Success program at my SaaS company, I’d like to build an onboarding function for my software. How do I go about doing that?

Building a comprehensive onboarding function for your SaaS software is crucial to ensure that customers have a smooth and successful experience with your product. Here’s a step-by-step guide to help you establish an effective onboarding program:

1. Define Onboarding Objectives:
   • Clearly define the goals and objectives of your onboarding program. Understand what success looks like for your customers during the onboarding process and set measurable KPIs.
2. Understand Your Customer Personas:
   • Identify and understand the different customer personas using your software. Tailor your onboarding program to address the specific needs, challenges, and goals of each customer segment.
3. Map the Customer Journey:
   • Map out the customer journey from the point of sign-up through the onboarding process. Identify key touchpoints, milestones, and potential challenges. This mapping will guide the development of your onboarding program.
4. Develop a Structured Onboarding Process:
   • Create a structured and step-by-step onboarding process that guides customers through the essential features and functionalities of your software. Break down the onboarding journey into manageable stages.
5. Utilize Interactive Onboarding Elements:
   • Incorporate interactive elements into your onboarding, such as tutorials, tooltips, and interactive guides. These elements provide hands-on experience and help users learn by doing.
6. Provide Educational Resources:
   • Develop educational resources, such as video tutorials, documentation, and knowledge base articles. These resources should be easily accessible and provide in-depth information on using different features of your software.
7. Personalize Onboarding Paths:
   • Offer personalized onboarding paths based on customer preferences, goals, and usage patterns. Allow users to choose their focus areas and tailor the onboarding experience to their specific needs.
8. Implement Progressive Profiling:
   • Gather information gradually through progressive profiling during the onboarding process. Instead of overwhelming users with extensive forms, collect essential information progressively to enhance user experience.
9. Incorporate Gamification Elements:
   • Introduce gamification elements to make the onboarding process more engaging. Use badges, achievements, or progress trackers to motivate users to complete different stages of onboarding.
10. Leverage Automation:
    • Use automation to streamline onboarding workflows. Automated welcome emails, product tours, and triggered messages can guide users through the onboarding process without manual intervention.
11. Offer Live Assistance:
    • Provide channels for live assistance during onboarding. This could include live chat, webinars, or dedicated customer support. Real-time assistance can address user questions and concerns promptly.
12. Collect Feedback During Onboarding:
    • Implement mechanisms to collect feedback during the onboarding process. Use surveys or feedback forms to understand user sentiment, identify areas for improvement, and address any challenges.
13. Measure User Progress and Engagement:
    • Implement analytics tools to measure user progress and engagement during onboarding. Track key metrics such as completion rates, time spent on specific features, and user interactions to assess the effectiveness of your program.
14. Iterate Based on Feedback and Data:
    • Regularly review feedback and data collected during onboarding. Use insights to iterate and refine your onboarding program. Continuously adapt based on user needs, industry trends, and changes in your software.
15. Collaborate with Customer Success:
    • Foster collaboration between the onboarding function and the Customer Success team. Ensure a seamless transition from onboarding to ongoing customer success initiatives. Share insights to enhance the overall customer journey.
16. Celebrate Onboarding Milestones:
    • Recognize and celebrate customer milestones during the onboarding process. This could include completing specific tasks, reaching certain usage levels, or achieving initial goals. Celebrations reinforce positive user experiences.

By following these steps, you can build a robust onboarding function that sets your SaaS software users up for success, enhances their understanding of your product, and contributes to long-term customer satisfaction and retention.

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Prompt # 3

I am a founder of a SaaS Startup and I have recently built out a Customer Success team and an Onboarding Team. How do I go about building out a world class 24/7 Customer Support function at my company?

Building a world-class 24/7 Customer Support function for your SaaS startup requires careful planning, strategic implementation, and a commitment to customer satisfaction. Here’s a comprehensive guide to help you establish an effective 24/7 Customer Support team:

1. Define Support Objectives:
   • Clearly define the objectives of your Customer Support function. Understand the specific needs and expectations of your customer base. Define key performance indicators (KPIs) such as response time, resolution time, and customer satisfaction metrics.
2. Determine Support Channels:
   • Identify the support channels you’ll offer, including email, live chat, phone support, and potentially social media. Consider implementing a ticketing system to manage and prioritize support requests efficiently.
3. Global Team Distribution:
   • Consider building a global support team to cover different time zones. Distributing support agents across regions ensures that there is coverage 24/7 and that customers receive timely assistance.
4. Hire and Train Support Agents:
   • Recruit support agents who are knowledgeable about your product, customer-focused, and possess excellent communication skills. Provide comprehensive training on your SaaS product, support processes, and effective communication with customers.
5. Implement Tiered Support Structure:
   • Establish a tiered support structure with different levels of expertise. Tier 1 agents can handle basic inquiries, while Tier 2 and Tier 3 agents handle more complex technical issues. This ensures efficient issue resolution and escalations.
6. Utilize Self-Service Resources:
   • Develop a robust self-service knowledge base with FAQs, tutorials, and troubleshooting guides. Encourage customers to find answers independently before reaching out to support. This helps reduce the volume of repetitive queries.
7. Invest in Customer Support Technology:
   • Implement customer support tools and technologies, such as helpdesk software, chatbots, and CRM systems. These tools streamline support processes, automate responses, and provide valuable insights into customer interactions.
8. Offer Multi-Channel Support:
   • Provide support across various channels to meet customer preferences. Ensure a seamless experience for customers switching between channels, maintaining a unified and consistent support experience.
9. Establish Service Level Agreements (SLAs):
   • Define clear SLAs for response times and issue resolution. Communicate these SLAs to customers to manage expectations effectively. Strive to consistently meet or exceed these service levels.
10. Monitor and Analyze Support Metrics:
    • Implement analytics to monitor key support metrics, including ticket volume, resolution times, customer satisfaction scores, and first-contact resolution rates. Regularly analyze this data to identify trends and areas for improvement.
11. Continuous Training and Development:
    • Provide ongoing training and development for support agents to keep them updated on product updates, industry trends, and best practices. Foster a culture of continuous learning to enhance the skills of your support team.
12. Implement a Ticketing System:
    • Use a robust ticketing system to organize, prioritize, and track support requests. Categorize tickets based on urgency and complexity, allowing for efficient triaging and resolution.
13. Implement 24/7 Availability:
    • Ensure that your support team is available 24/7. This may involve rotating shifts, hiring remote support agents in different time zones, or partnering with third-party support providers for extended coverage.
14. Proactive Communication:
    • Proactively communicate with customers about known issues, updates, and resolutions. Keep customers informed to reduce frustration and build transparency in your support processes.
15. Customer Feedback and Surveys:
    • Collect customer feedback through surveys and direct communication. Use this feedback to identify areas for improvement, measure customer satisfaction, and recognize outstanding support efforts.
16. Investigate and Resolve Root Causes:
    • When recurring issues arise, conduct thorough investigations to identify and address root causes. Implement corrective actions to prevent similar issues from reoccurring.
17. Promote Customer Advocacy:
    • Turn customer support interactions into opportunities for advocacy. Encourage satisfied customers to provide testimonials, participate in case studies, and refer new business. Happy customers can be powerful advocates for your SaaS startup.
18. Celebrate Support Team Achievements:
    • Recognize and celebrate the achievements of your support team. Acknowledge outstanding performance, milestones, and contributions to customer satisfaction. A positive and motivated team is essential for delivering exceptional support.

By implementing these strategies, you can build a world-class 24/7 Customer Support function that effectively meets the needs of your customers, enhances their experience, and contributes to the success and growth of your SaaS startup.

Prompt #4

I am the VP of Customer Success at a SaaS company. What is the best way to build out compensation/bonus plans, and targets for my Customer Success Managers, Onboarding Specialists and Customer Support Agents?

Designing effective compensation and bonus plans for Customer Success Managers (CSMs), Onboarding Specialists, and Customer Support Agents requires aligning incentives with strategic goals and ensuring that individual performance contributes to overall customer satisfaction and retention. Here’s a guide for building out compensation plans and targets:

1. Understand Business Goals:

• Align compensation plans with the overarching business goals of the SaaS company. Identify key performance indicators (KPIs) related to customer success, onboarding, and support, such as customer retention, upsell opportunities, and customer satisfaction.

2. Define Role-Specific Metrics:

• Tailor metrics for each role to reflect their specific contributions. For CSMs, consider metrics like customer retention, expansion revenue, and Net Promoter Score (NPS). Onboarding Specialists may focus on time-to-value and successful onboarding completion, while Support Agents may be measured on ticket resolution times and customer satisfaction.

3. Base Salary and Variable Components:

• Establish a balance between base salary and variable components (bonuses or commissions). Base salary provides stability, while variable components incentivize high performance and goal achievement. The weight of variable components may vary based on the role’s impact on revenue and customer satisfaction.

4. Tiered Compensation Structure:

• Implement a tiered compensation structure with escalating rewards for exceeding targets. For example, higher percentages of variable compensation can be earned as CSMs achieve higher customer retention rates or Onboarding Specialists successfully accelerate time-to-value.

5. Individual and Team Targets:

• Set individual targets aligned with role-specific metrics. Additionally, introduce team-based targets to foster collaboration and a shared commitment to overall customer success. Team performance can impact individual bonuses, creating a collective sense of responsibility.

6. Customer Satisfaction Metrics:

• Integrate customer satisfaction metrics into compensation plans. This could include incorporating NPS scores, customer feedback, and retention rates. High customer satisfaction should be rewarded, reinforcing the importance of delivering exceptional customer experiences.

7. Upsell and Expansion Targets:

• For CSMs, include upsell and expansion targets to encourage a proactive approach in identifying opportunities for growth within existing accounts. Linking compensation to expansion revenue aligns the role with the company’s overall revenue goals.

8. Onboarding Success Metrics:

• Establish metrics that reflect successful onboarding, such as time-to-value or completion of key milestones. Reward Onboarding Specialists for efficiently guiding customers through the onboarding process and ensuring they derive value from the SaaS product.

9. Ticket Resolution and Quality Metrics:

• Define metrics for Customer Support Agents related to ticket resolution times, first-contact resolution rates, and overall customer satisfaction. Recognize and reward agents who consistently provide high-quality support and contribute to a positive customer experience.

10. Qualitative Performance Metrics:

Consider incorporating qualitative performance metrics, such as customer testimonials, into compensation plans. Recognize and reward team members who receive positive feedback and contribute to building strong customer relationships.

11. Performance Reviews and Feedback:

Conduct regular performance reviews to provide feedback on individual and team performance. Use these reviews as an opportunity to discuss strengths, areas for improvement, and alignment with strategic goals.

12. Transparency and Communication:

Be transparent about the compensation structure and communicate it clearly to the Customer Success, Onboarding, and Support teams. Clarity fosters trust and helps team members understand how their efforts directly impact their compensation.

13. Adaptability and Iteration:

Build flexibility into compensation plans to adapt to changing business needs. Regularly review and iterate on the plans based on evolving priorities, market conditions, and the effectiveness of existing structures.

14. Recognition and Non-Monetary Rewards:

-Acknowledge outstanding performance with recognition programs and non-monetary rewards. Celebrate achievements, milestones, and contributions to a positive customer experience.

15. Legal and Ethical Compliance:

Ensure that compensation plans comply with legal and ethical standards. Address potential conflicts of interest and ensure that the plans encourage ethical behavior and customer-centric practices.

16. Continuous Evaluation and Improvement:

Continuously evaluate the effectiveness of compensation plans. Gather feedback from team members, analyze performance data, and make adjustments as needed to ensure that the plans remain motivational and drive desired outcomes.

By incorporating these considerations, you can design compensation and bonus plans that motivate Customer Success Managers, Onboarding Specialists, and Customer Support Agents to excel in their roles, contributing to the overall success of your SaaS company.