Customer Spotlight: Boost Customer Retention Through Product-Led Support

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Customer support is a critical part of the user experience, especially for paying customers. They expect to quickly understand your product, use the right capabilities to achieve their goals, and get on-demand guidance when they’re stuck. 

We hosted David Oswald, a product education and training consultant with 30+ years in the game, for an insight-packed conversation about the role of product-led for driving customer retention.

Understanding churn and enhancing retention

David Oswald emphasizes the critical nature of understanding and addressing the root causes of customer churn. He stresses the importance of continuous engagement beyond the initial sale to ensure customers recognize and appreciate the ongoing value of the product or service.

He explains this concept clearly, stating, "the key reason usually for churn is that your customer either doesn't have belief or trust in your company or your product." 

He advocates for a proactive approach in maintaining a connection with customers, suggesting that companies should consistently remind customers of their presence and support them in maximizing the product's value. This, David argues, is fundamental to enhancing customer retention and minimizing churn.

The evolution of training and learning

Reflecting on the shift in how training and learning are conducted, David observes a move towards simplification and the use of video-based learning. He notes, "what I'm seeing now is a shift—people are simplifying things, they're making it easier." 

This is a shift away from complex and time-consuming training methods towards more straightforward, engaging formats. David explains how this approach:

• Conveniently meets learners where they are 
• Respects their time + capacity for information absorption

There’s also a rise of video-based product education tools like Floik. 

David highlights the intrinsic value of video as a learning tool because it can convey complex information in an engaging and digestible format. He states, "if you can just do five minutes and I can get on with my job learning in the flow of work, that's the key."

Product-led growth across industries

David discusses the applicability of product-led growth strategies across different industries, noting that it works particularly well in software and tech. 

He explains, "product-led works really, really well in software and tech-based industries because the key is you are going to be learning on the device you're doing the job on." However, he also points out the challenges in non-tech industries, where creating an organic learning experience can be more challenging.

The 3R framework: retention, referral, revenue

The 3R framework—focusing on Retention, Referral, and Revenue—is central to David's approach. He succinctly explains, "if you make it easy for users to understand how your product works, you're going to get them referring, renewing, and that's when the revenue comes in." 

He breaks down each part of the framework:

• Retention, in his view, isn’t just about preventing customers from leaving but ensuring they find continuous value in the product. He mentions, "making sure they're using the product in the best way possible for their use cases" as a critical strategy for retention.
• A satisfied customer is the most effective marketing tool a company can have. The idea is that by providing an exceptional product experience and customer service, customers will naturally want to share their positive experiences with others.
• Revenue is a natural outcome of effectively executing the first two Rs. This approach not only saves on acquisition costs but also opens up opportunities for upselling and cross-selling, thereby increasing the lifetime value of each customer.

David believes the 3R Framework is a holistic approach to business growth, where understanding and meeting customer needs lead to a self-sustaining cycle of retention, referrals, and revenue. 

6 tips for implementing product-led support

David outlines several key steps for effectively implementing product-led support. Here are a few best practices:

• Aim for simplicity in content creation: Keep training and support materials straightforward and easy to understand. Avoid overcomplicating with unnecessary interactivity or complexity, which can make maintenance and updates challenging. Prioritize clarity and accessibility to ensure users can easily find and understand the information they need.
• Seek and utilize feedback actively: Feedback is invaluable for continuous improvement. Engage with customers to understand their needs, challenges, and the effectiveness of existing support materials. Establish channels for regular feedback, such as surveys, forums, or direct outreach, to gauge the success of your product-led support and identify areas for enhancement.
• Foster collaboration across teams: Don’t attempt to manage product-led support in isolation. Collaborate with different departments and leverage their expertise and insights. Encourage contributions from product teams, customer success, marketing, and even finance to create a comprehensive and multifaceted support strategy that addresses diverse customer needs.
• Create a learning design council: Assemble a cross-functional team that includes representatives from various departments to provide input on training and support materials. This council can offer diverse perspectives, ensuring that content is relevant, accurate, and beneficial for all customer segments.
• Produce content that serves real needs: Focus on creating content that addresses actual customer questions, problems, and use cases. This ensures that the support provided is practical, relevant, and valuable to the end user. Use data and feedback to identify common challenges or questions, and tailor your content to meet these needs directly.

Remember to think of product-led support as an ongoing project that evolves with customer needs and product developments. 

So, regularly review and update support materials to ensure they remain accurate, effective, and aligned with the latest product features and customer expectations.

Turn customer support into a growth lever

Our conversation with David was a comprehensive guide to enhancing customer retention through product-led support. His insights emphasize the importance of continuous engagement after the deal is signed to convert new customers into brand advocates.

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