Customer Success is a business methodology and organisational function focused on helping customers achieve their desired outcomes whilst using a company’s product or service. Unlike traditional customer support, which is typically reactive, customer success is proactive and strategic, aiming to maximise customer lifetime value, reduce churn, and drive sustainable growth through positive customer experiences.

Definition and core principles for customer success

Encompasses the processes, strategies, and activities designed to ensure customers realise maximum value from their investment in a company’s offerings. It operates on the principle that customer success directly correlates with business success, creating a mutually beneficial relationship where customers achieve their goals whilst companies maintain long-term revenue streams.

The discipline emerged in the early 2000s with the rise of subscription-based business models, particularly Software as a Service (SaaS), where customer retention became more critical than initial acquisition for sustainable profitability.

Key components of customer success

Onboarding and implementation: Structured processes to help new customers adopt and integrate products or services effectively, reducing time-to-value and early-stage churn.

Health monitoring: Systematic tracking of customer engagement, usage patterns, and satisfaction metrics to identify at-risk accounts and expansion opportunities.

Proactive engagement: Regular check-ins, strategic reviews, and consultative support to ensure customers remain on track to achieve their objectives.

Renewal and expansion management: Coordinated efforts to secure contract renewals and identify opportunities for account growth through additional products, services, or increased usage.

Metrics and measurements

Customer success teams typically monitor several key performance indicators (KPIs):

• Customer Satisfaction Score (CSAT): Measures immediate satisfaction with specific interactions or experiences
• Net Promoter Score (NPS): Gauges customer loyalty and likelihood to recommend the company
• Customer Effort Score (CES): Assesses the ease of achieving desired outcomes
• Churn rate: Percentage of customers who discontinue their relationship within a given period
• Customer Lifetime Value (CLV): Total revenue expected from a customer throughout their relationship
• Expansion revenue: Additional revenue generated from existing customers through upselling or cross-selling

HR’s role in driving customer sccess

Within human resources, customer success principles are increasingly applied both internally and externally. HR departments adopt customer success methodologies to improve employee experience, treating employees as internal customers whose success directly impacts organisational performance.

Internal application: HR uses this frameworks for employee onboarding, engagement monitoring, retention strategies, and career development programmes. This approach helps create more personalised employee experiences and proactive interventions to prevent turnover.

External application: HR plays a crucial role in building customer success capabilities by:

• Recruiting professionals with the right combination of analytical, consultative, and relationship-building skills
• Developing competency frameworks specific to roles
• Creating career progression pathways within functions
• Establishing training programmes that blend technical product knowledge with soft skills
• Implementing performance management systems aligned with metrics

Organisational structure: HR helps determine optimal customer success team structures, whether centralised, distributed across product lines, or embedded within account management functions. This includes defining roles such as Managers, Operations, and Executive roles.