Edward Chiu, the co-CEO of Totango + Catalyst, is leading a customer growth platform focused on maximizing customer lifetime value and driving revenue in a challenging market environment, particularly in the tech industry.
The demand for sustainable revenue growth is reshaping companies’ go-to-market (GTM) strategies, with an increasing focus on protecting and growing revenue from existing customers. According to research presented at the TSIA World INTERACT 2024 conference, companies are distributing revenue responsibility across all GTM functions, including sales, marketing, customer success (CS), and product teams.
Despite the shift towards prioritizing expansion, adoption, and retention, many companies lack the necessary tools to implement this change effectively. Attempting to adapt existing CRM software or relying on spreadsheets often falls short of supporting the integrated approach required for sustainable revenue growth.
To address these challenges, Chiu recommends that companies make their CS teams a valuable asset by aligning their goals with financial priorities, providing them with suitable customer growth software, and incentivizing new practices and growth targets. By leveraging CS professionals to drive revenue generation and maximize customer lifetime value, companies can achieve sustainable growth in the long run.
Chasing customer lifetime value (LTV) over short-term sales metrics is crucial for companies looking to stand out in the competitive market. By focusing on cultivating customer loyalty, reducing churn, and offering value-added services, organizations can increase the longevity of their customer relationships and drive revenue growth steadily.
CS professionals are increasingly becoming strategic partners in the C-suite, contributing valuable insights and collaborating with various functions to drive revenue expansion and enhance customer relationships. Companies that prioritize the role of CS in revenue generation and align their GTM strategy accordingly will be better positioned to succeed in maximizing customer LTV and achieving sustainable growth.
In conclusion, the evolving role of CS in revenue generation is essential for companies looking to thrive in today’s competitive landscape. By elevating CS within the organization, leveraging insights from CS professionals, and aligning GTM strategies with long-term revenue goals, companies can drive sustainable growth without getting caught up in the front-line battles of hitting sales quotas.
