Attribution is a key Customer Success challenge

Everything is measurable

Customer success has an image problem, what else is new. More specifically, it has an attribution problem. It infuriates me that CS struggles to claim responsibility for revenue and LTV improvements particularly when so many businesses seem to have no problem at all measuring churn as the key indicator of customer success performance.

As we all know by now, customer success team is rarely responsible for ALL of churn and it’s equally rare for it to be responsible for ALL of expansion. Customers succeed and expand when they have well manage expectations about an excellent product that offers value that they can access. You see the rub? Everyone is struggling with the same problem. It’s just that (by and large) other departments have solved the problem faster or more effectively than us in CS.

I’ve spent my career measuring the unmeasurable. From earned reputations and market opportunities to digital marketing campaigns. I’ve even scoped projects to measure the separate impacts of the weather and outdoor marketing campaigns on the sales of holidays…

The key tool that hides in plain sight for customer success is called attribution. You’re probably more familiar with it than you think. Let’s look at most common attribution models to explore how it helps and hinders our noble mission:

Last touch

This is where you attribute 100% of the result to whatever happened immediately beforehand.

It’s what sales use, MANY digital marketing channels claim and it’s what’s used when the CS team is blamed for churn.

It’s crap, but easy to measure.

First touch

This is the same as last touch except you’re looking for the first signal that the result will happen.

This is what top-of-the-funnel marketers use, MANY digital marketing channels claim and they’re the signals you should be desperately searching for as a CS department that wants impact the ultimate result.

It’s even worse because while it’s equally easy to measure, everyone will fight it.

Multi-touch

A more sophisticated model that show multiple factors as sharing responsibility for the result.

There are many versions from simple split between every agreed factor to versions weighted by time or other metrics.

This is better, can be AB tested to improve accuracy and at least is more reflective of real life.

There are lessons here.

Firstly, where you can claim last touch attribution (i.e. the CSM closed an expansion deal) do so. Despite its obvious shortcomings it is the most universally accepted form of attribution particularly where the model includes services and high-touch elements.

Secondly, get involved in multi-touch attribution modelling for CS. You need to be looking for signals throughout the relationship and treating them all as if they could be 100% responsible for a future customer churning or growing.

Document the signal, the action and the result. Even if the action is not with the customer success team it’ll have some impact on practically every result.

Lastly, alignment is key. CS should be the catalyst that means every function contributes to customer success. This can only be done if you’re actively looking for how other departments impact the customer, speak their language, give them credit where it’s due and supporting them to earn more of that credit with insight and relevant service.

This may seem like a lot but it really is the foundation of customer success the concept and the team.