Earlier this week, I asked on LinkedIn if CS and account management should merge. This controversial topic has been the most discussed post this year. While the evolving nature of CS and AM is recognised, the decision to merge them should be based on specific company needs, customer segments, and strategic goals. Concerns exist that merging could shift focus from delivering customer value to generating revenue, potentially harming long-term customer relationships.
Companies are rethinking their approach to customer interactions, and one area ripe for transformation is the Customer Success function. Traditionally viewed as a support and engagement role, most agree that CS must change in 2025 and provide additional value. This is a unique opportunity to adopt both the "farmer" and "hunter" mindsets, driving revenue while fostering stronger client relationships. Let's explore it.
The Farmer and Hunter Paradigm
In sales terminology, farmers cultivate existing relationships, nurturing clients to ensure satisfaction and retention. Farmers focus on delivering value, addressing client concerns, and understanding their evolving needs. On the other hand, Hunters actively seek new opportunities, pursuing prospects to expand the client base and boost sales. These roles have been siloed for too long, with sales teams focusing primarily on acquisition while customer success teams concentrating on retention.
However, as companies shift towards a more holistic revenue model, every CS role should embrace both mindsets. This dual approach allows them to maintain client relationships and identify upsell and cross-sell opportunities, ultimately contributing to the bottom line. By integrating a revenue goal into the CS function, organisations can create a culture where every client-facing role is aligned with the company's financial objectives.
The Case for Change
The changing dynamics of customer expectations underscore the necessity for this paradigm shift. In a world where clients are more informed and empowered than ever, they expect personalised experiences and proactive engagement. Therefore, customer success managers (CSMs) are in a prime position to bridge the gap between client satisfaction and revenue generation.
When CSMs adopt the mindset of farmers and hunters, they can transform their interactions from reactive to proactive. Instead of merely responding to issues as they arise, CSMs can anticipate client needs, recommend solutions, and position their offerings as essential to the client's success. This proactive engagement enhances customer satisfaction and opens the door for new revenue streams. A mindset that mainly focuses on relationship building is very hard to maintain in companies that want to grow efficiently, and the pressure builds up for the need to change.
The Win-Win-Win Concept
The positive thing is that adopting this integrated approach creates a win-win-win scenario, which helps with introducing a mindset change across CS teams:
- For the Company: Enhanced revenue performance through increased client satisfaction and loyalty. When clients feel valued and understood, they are more likely to engage in long-term relationships and invest more in your services or products.
- For Customer Success Managers: Increased visibility and influence within the organisation can lead to career advancement opportunities as they demonstrate their value in driving revenue. When CSMs are recognised as revenue generators, they gain credibility and the potential for leadership roles. Delivering value and asking for money can go hand in hand.
- For Clients: Happier clients are more likely to remain loyal, engage in additional purchases, and become advocates for the brand. A satisfied client not only contributes directly to revenue but can also provide valuable referrals, creating a cycle of growth and opportunity. And most clients are pleased to pay for great value - In the end, it is a business relationship.
When CSMs actively generate revenue, they become key players in a company's success. This shift benefits the organisation and enriches the CSM experience, making their role more dynamic, impactful, and fun. In a time when money is not cheap anymore, nd efficiency targets need to be met, every client-facing role in commercially minded companies should have a revenue goal.
Leveraging AI for Enhanced Relationships
CSMs can leverage technology, particularly AI, to effectively transition into this dual role to elevate their client interactions. AI tools can enhance the quality of meetings, streamline follow-ups, and improve the speed and accuracy of responses. By automating routine tasks and providing data-driven insights, CSMs can focus on what truly matters: building meaningful relationships and identifying new growth opportunities.
AI can help personalise and anticipate client needs, allowing CSMs to address concerns and demonstrate value proactively. For instance, predictive analytics can help CSMs identify clients at risk of churn and provide tailored solutions to mitigate that risk. This proactive approach strengthens the client relationship and positions CSMs as trusted advisors, further solidifying their role in revenue generation.
Moreover, AI can facilitate better collaboration among teams. By sharing insights about customer interactions and feedback, CSMs can work closely with sales and marketing teams to create a unified approach to client engagement. This collaboration ensures that every touchpoint adds value and reinforces the company's commitment to client success.
Cultivating the Right Mindset
Transitioning to this dual role requires a fundamental shift in mindset, not just for CSMs but the entire organisation. It must emphasise the importance of revenue generation across all client-facing roles and provide the necessary training and resources to empower CSMs. This includes equipping them with the skills to recognise opportunities, negotiate effectively, and understand the broader business implications of their actions.
Additionally, organisations foster a culture of collaboration where CSMs feel supported in their efforts to contribute to revenue goals. Regular training sessions, workshops, and cross-functional team meetings can help reinforce this new mindset and encourage open communication among departments.
As we navigate an increasingly interconnected and competitive market, it's clear that traditional boundaries between roles must evolve, and we all need to wear multiple hats.
What is your take on the hunters and farmers roles? Will they stay, or is a combination the new normal in any revenue-carrying role? Leave your comments below!
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