One Size Does Not Fit All

Posted on:
December 4, 2018
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Tiered service levels will make sure you are maintaining good revenue per hour margins across your client base.

To run an efficient client success team, you will need a number of tiered service levels.

Across your portfolio of clients, you will no doubt have a range of MRR. This could be in very defined bands, or completely variable, but that part doesn't matter, the important fact is that you cannot scale your business by providing the same level of client support to everyone. This is where client tier levels come in handy. You can call your tiers what you want (Gold, Silver, Bronze or Pro, Expert, Basic) it doesn't matter, but you must work out what level of support is provided at each tier. Clearly your top level should get the full deal, nothing is too much for these clients, whilst the lowest level should only get the very basic levels of support.

What sort of support should each tier get?

It could be tempting to think about assigning a number of set hours to a each tier, but personally I think this is very hard to put into practice, and isn't always to your advantage. A better approach is thinking about what takes up your time and resources (travel being a big one here) and start to restrict these instead.

How to define your tiers

The easiest way, is to rank all of your clients by MRR and just cut the group into segments. It's normally the case that you have far fewer Gold clients, and lots of Bronze. This makes sense as the CSM will be spending more time on Gold clients and therefore can only offer those levels to a few. There might also be some strategic cases where a client could be part of a bigger holding company your Sales Director is prospecting, so here you might want to offer the client Gold service, even if their standalone MRR puts them in Silver.

Does this mean some clients get a poor experience?

Absolutely not. In an ideal world, you will have worked with your Sales team to ensure that clients are educated about the tier levels and what they can expect as part of the sales process. And by the way, even if a given clients MRR would put them in the Bonze tier, there's no harm in letting them pay extra for Silver levels of service.

This is just a framework, and you might find for your business you only need two tiers, or maybe four, either way I'd suggest getting to work on your tier structure sooner rather than later so that you can maximise those efficiencies today.

Written By

Simon Cooper

Simon has over 10 years helping clients achieve their goals through the use of software.  Having previously lead Customer Success teams in London, Europe and New York City, Simon now owns Kupr Consulting working with B2B SaaS companies to improve their Customer Success teams and processes. Articles

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