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Growth vs. Defense: Your Choice

Watch what happens the day after a deal closes.

The salesperson's already on the next deal. Somebody on the post-sale side gets notified there's a new customer, automated emails go out telling the customer what they need to do, and then somebody reaches out to book a kickoff call.

On that call, everybody jumps straight into functional and technical setup. Nobody really connects with the person, because they've got to get them up and running as quickly as possible.

It looks a lot like chasing the customer.

What got left on the sales call

That buyer just spent weeks with a salesperson, talking about the company's goals and their own, what they're worried about, and what would make them look good in front of their boss.

And yes, enterprise buyers get emotionally invested. Not the way I'd get excited to finally see Beyoncé in concert. It's in context: doing their job better, looking better to their boss, reporting better outcomes to the board. That's pretty cool, and a good salesperson builds exactly that.

Then the handoff strips it out. The intel never leaves the sales call. The trust doesn't transfer. And the customer drops into a functional valley of sadness.

They spent weeks getting hyped on the outcome they wanted. Nobody signed up to go through setup and configuration, but that's all anybody wants to talk about now, and the energy goes with it. They repeat everything they already told the salesperson to somebody new. Nobody's planning ahead, and nobody's orchestrating.

The salesperson didn't orchestrate it either. Nobody told them to, and nobody pays them to.

It doesn't have to go that way. You can do onboarding right and keep that energy up while you handle the functional parts. It just takes deliberate effort: a proper handoff, a real trust transfer, and actually learning from what the sales process found out about the customer, and about the specific humans you'll be working with. That's how you keep their eyes on the prize while they work through the boring stuff.

Here's the irony. Time to first value is the key metric, and the value everybody's racing toward isn't the value the customer actually needs. It's yours. You could still move fast, you'd just be moving in their context instead of yours. (Most companies can't say what "first value" means anyway.)

So the things done to make sure they stick around are the things that drive them away. That little space between sales and post-sale is where the seeds of churn get planted.

Nobody picked this

It'd be easy to say this company decided to play defense. I don't think it did.

Nobody sets out with "I hope the customer doesn't leave before we pay back what it cost to acquire them" as their operating philosophy.

Most companies start out wanting to deliver value and grow their customers. They just don't know how, because it isn't something anybody talks about. There's no playbook for it.

So good intentions meet reality, and the reality is that customers don't do what we want them to do. The model underneath was built on a broken premise, and it doesn't work.

Nobody makes a conscious decision up front. But decisions get made later, on a flawed understanding of what's really going on.

The chain

It doesn't work, so somebody asks why.

Onboarding gets blamed first. That's not a crazy place to look. But seen the wrong way, onboarding is a purely functional process that's all about the product and all about us, which makes it easy to understand, and fixing it doesn't change much.

Then it's adoption, breadth, depth. None of that focuses on the customer either.

Then it gets punitive. The product's great, so if it isn't working it must be the customer's fault, and the answer is to give them as little as possible.

Less works worse, which confirms the blame.

Now the effort goes to the end of the lifecycle. Saves. Throwing them a bone, a discount, some concession: low-percentage work that at best winds up prolonging the inevitable. Nothing actually changes, and when they cancel later anyway they're angrier than before, because you wasted their time.

At every link, instead of looking for the fundamental reason it didn't work, the company finds the reason that's easiest to accept. Very often that's just blaming the customer, and then deciding to give them even less. They were never the problem.

Defense isn't a strategy anybody picked. It's just what's left once every easier explanation has been used up.

Go look at your map

You can check this one today. Pull up your customer lifecycle map. It probably says sales, onboarding, ongoing, renewal, expansion, advocacy. Like it's magic.

Now look at the ongoing part. It's rarely mapped, even at a high level. There's a burst of effort to get them onboarded, and after that the only effort goes into saving them when they want to leave or getting the renewal, with maybe an expansion at renewal, which is the worst time to try.

That's the retention machine people think they've built. It's accepted wisdom. It's also how you do it if you want to fail.

Where you can watch it happen

The cleanest version is in low-revenue segments, and it's one you can check.

Customers get what they deserve. If someone pays a lot, they get a lot, maybe higher touch and more one-on-one. If they pay less, they get self-service.

But the right experience is set by the customer's characteristics, not their price. If their appropriate experience is higher touch and they don't pay enough to make that economically feasible, they're probably going to churn. So they do.

Then the company decides there's just a lot of churn in those low-revenue segments, so it gives them even less. Guess what. Even more churn.

I wrote that loop down in 2020. It's still running.

The question is upstream

The instinct is to ask whether to give those customers less. That's the wrong question.

The question is whether you should be doing business with them at all.

Save mode on those accounts comes from real pressure. You paid to acquire them, and you've got to at least get back what it cost to acquire and serve them, so the team fights to keep customers who are a bad fit. Then somebody gets blamed when they churn, when you shouldn't have done business with them in the first place.

That decision doesn't live in post-sale. It lives at acquisition, where somebody decided any customer who's breathing and has a credit card will do.

Not all revenue is created equal. If you want to maximize lifetime value, you need customers who can stay longer and buy more over time. That's growth-oriented acquisition. You acquire and you grow. None of it happens with customers you can't deliver value to.

It's a mentality, and it's operational

Call it a mentality and people hear rah-rah culture talk. It isn't that. It's a view of what the customer actually looks like to you, from the very beginning.

The day a customer signs, somebody on your team holds one of two views about them, whether they'd say it out loud or not. My job is to just make sure they don't leave. Or my job is to get them on an ascension path.

That's an operational point of view. It shapes everything.

A customer that's successful with you should be growing and evolving their relationship with you. Go in thinking it's all about keeping them, and you've already failed.

Nobody chooses defense. But you can choose the other one, on purpose, starting with the next customer who signs.


Lincoln Murphy formally named and popularized Customer Success starting in 2010 and has spent 15 years connecting it to expansion revenue and commercial outcomes. Read The Premise.

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