According to a 2023 survey by Gainsight, 70% of Customer Success Managers report that influencing organizational change within their customers’ companies is one of the most challenging aspects of their role, with 45% citing resistance to change as a significant barrier to driving adoption and long-term success.

Influencing organizational change has always been a challenging task for Customer Success Managers. While CSMs are responsible for driving product adoption and ensuring customer satisfaction, they also face the complex task of reshaping internal processes, shifting mindsets, and aligning teams with new strategies. During our Europe sessions, we gathered insights from CSM Professionals in companies like Materialise, Salesforce, and Wix. 

Here are some notes on what we’ve learned from the event. Our moderators, Jose Baldaia, Max Alderson, Sue Nabeth Moore,   

Amsterdam: “Acknowledge the challenge of organizational change work”

Customer Success Managers (CSMs), as the voice of the customer, possess a unique ability to catalyze organizational change. By proactively highlighting the tangible value of Customer Success and actively collaborating across departments, CSMs can break down silos, drive product innovation, and ultimately foster a customer-centric culture that fuels sustainable growth.

Here’s a deeper look at how CSMs can influence organizational change internally.

1. Beyond simply stating their value, CSMs should become data storytellers. By consistently showcasing these metrics, CSMs can shift the perception of Customer Success from a cost center to a revenue-generating function, earning greater recognition and influence within the organization.
2. By sharing customer insights and feedback, CSMs can help shape product roadmaps, marketing campaigns, and overall business strategy. 
3. CSMs should actively identify and cultivate relationships with individuals across various departments who understand and appreciate the value of Customer Success. 
4. CSMs and sales teams should work hand-in-hand throughout the customer lifecycle. By sharing customer insights and potential churn risks early on, CSMs can empower sales teams to address customer concerns proactively and close deals more effectively.

CSMs can act as powerful change agents within their client organizations, influencing positive shifts in perception, adoption, and overall success with the product or service. 

Let’s delve deeper into how they accomplish this:

1. CSMs leverage concrete customer data, such as increased efficiency, reduced costs, or improved KPIs, to illustrate the product’s or service’s tangible benefits.
2. CSMs tackle the common hesitation of building solutions in-house by emphasizing the long-term cost-effectiveness and scalability of subscription models. 
3. CSMs recognize that change, especially in less digitally mature organizations, can be met with resistance.

Ghent: “Drive change from within.”

Change management is a critical process that guides individuals, teams, and organizations through transitions. It’s about helping people adapt to new ways of working, whether that involves adopting new internal processes and tools or embracing new software solutions.

Within an organization, change management involves getting your colleagues on board with new initiatives. To effectively drive change internally:

1. Get the Right People Involved: Identify key stakeholders and influencers who can champion the change and help drive adoption.
2. Drive Change from Within: Foster a culture of openness and encourage employees to share their feedback and ideas.
3. Make Training Engaging: Ensure training sessions are interactive and relevant to boost engagement and accelerate adoption.

Regarding customers, change management focuses on guiding them through adopting your software.

1. Understand Customer Needs: Start by truly understanding your customer’s goals and objectives. Tailor your conversations to their specific needs and pain points.
2. Align with Customer Goals: Clearly demonstrate how your software aligns with their targets and can help them overcome challenges.
3. Gather and Act on Feedback: Actively seek and gather customer feedback to improve your platform and continuously stay ahead of the market.
4. Leverage Customer Success Stories: Use positive customer experiences to attract new clients and encourage adoption among existing ones.

Berlin: Convincing customers to adopt a new solution is a marathon, not a sprint

As a Customer Success Manager (CSM), you’re not just a product expert or a troubleshooter; you’re a change agent. You guide customers on a transformation journey, helping them adopt new solutions and achieve their business goals. It’s a marathon requiring patience and strategy.

Internal Change Management: Laying the Foundation

Before you can successfully drive change externally, your internal change management processes must be rock solid. Take inspiration from construction tech company Sablono. They shifted from a ‘brute force’ approach to a multi-threaded strategy involving key stakeholders. This meant understanding each stakeholder’s objectives and commitment level and sharing accountability for the change process.

Understanding & Educating Your Customer

Change often involves overcoming objections and misconceptions.  A furniture subscription service, for example, had to proactively educate customers about the potential for wear-and-tear on reused items, framing it as part of the circular economy’s benefits. Back your arguments with data that proves the value of your product.

Regularly remind customers of their original goals and the purpose of your product. This helps them focus on the bigger picture, especially during challenging transition periods.

Listening to Your Customer

When Conductor faced a platform switch due to an M&A, they realised internal change management wasn’t enough. They had to navigate the unique challenges of regional markets like Germany, adapting their approach based on customer feedback rather than forcing changes.

Create a Customer Advisory Board (CAB) to formalize feedback collection and integrate it into your change management strategy. This demonstrates your commitment to customer-centricity and helps you stay ahead of evolving needs.

Tailoring Your Approach

Enforcing change rarely works. Understand your customers’ unique contexts and needs, and tailor your communication accordingly.

Document goals: At the start of each customer relationship, clearly document their goals and refer back to them throughout the journey.

Utilize a tiered system: Segment customers based on their needs and engagement levels to personalize your communication and support.

Involve customers in product development: Gather feedback throughout the development process and actively involve customers in UAT testing. This helps build a sense of ownership and excitement for new features.

Copenhagen: “By fostering clear communication, early alignment, and customer engagement, CSMs can ensure a smooth transition, leading to long-term customer success and satisfaction.”

Customer Success Managers (CSMs) are pivotal in helping customers navigate organizational change, whether adopting new technology, processes, or strategies. Effective change management requires CSMs to address both internal and external factors, ensuring their team is aligned and prepared while also guiding customers through the process.

Critical takeaways for CSMs driving change:

• Understand the Cultural Shift: Recognize that adopting new solutions can significantly impact how customers and teams operate. Tailor your approach to their context, acknowledging that startups may be more adaptable than established enterprises.
• Embrace Internal & External Change: Change affects everyone. CSMs must support customers while also navigating internal adjustments. Collaboration and knowledge sharing across departments is crucial.
• Reimagine the Customer Journey: Approach each customer’s adoption journey with fresh eyes. Understand their unique challenges and provide proactive support and guidance.
• Prioritize Time to First Value: Demonstrate the value of the product or service early on to build momentum and encourage ongoing engagement.
• Assess Customer Readiness: Recognize that not all customers are ready for change simultaneously. Identify potential roadblocks and address them proactively.
• Communicate Clearly: Establish open and transparent communication channels to set expectations, address concerns, and ensure everyone is on the same page.
• Foster Customer Engagement: Empower customers to actively participate in the change process, making them feel valued and heard.

Ultimately, successful change management hinges on understanding and addressing change’s internal and external aspects. 

Paris: “Establish Clear Communication Channels”

Customer Success Managers (CSMs) are pivotal in driving successful adoption and change within client organizations. However, they often encounter several challenges along the way. Here, we explore some of the common obstacles CSMs face and provide insights on navigating them effectively.

Key Challenges in Influencing Organizational Change as a CSM

1. Juggling Change Management Across Multiple Customers

CSMs often manage relationships with multiple customers simultaneously, each with unique change management needs. Balancing these diverse demands can be challenging, especially when maintaining consistent communication and support. Implementing a structured approach with clear timelines, prioritization frameworks, and scalable resources can help CSMs effectively manage change across their entire customer portfolio.   

2. Motivating Customer Participation

Change requires active customer participation, but fully engaging them can be difficult. CSMs can overcome this challenge by positioning themselves as collaborative partners rather than just service providers. Establishing clear communication channels, setting mutual goals, and showcasing the value of the change can help foster customer buy-in and enthusiasm.

3. Integrating Change Management into Digital Interactions

In today’s digital-first world, CSMs increasingly rely on digital channels to interact with customers. However, integrating change management into these interactions presents unique challenges. Leveraging in-app messaging, personalized webinars, and targeted educational content can help CSMs guide customers through change even when in-person interactions are limited.   

Best Practices for CSMs to Drive Change

• Foster Collaborative Partnerships: Position the vendor as a collaborative partner invested in the customer’s success. This helps build trust and encourages mutual ownership of the change process.
• Map and Engage Stakeholders: Identify key stakeholders within the customer organization and tailor communication to their specific needs and roles. Empower these stakeholders to become change champions and internal advocates.
• Define Clear Responsibilities: Clearly outline the roles and responsibilities of both the vendor and customer stakeholders throughout the change journey, ensuring everyone is aligned and accountable.
• Educate and Empower: Provide customers with the knowledge and tools they need to drive change effectively. Utilize frameworks like ADKAR to ensure customers are aware, motivated, and equipped to navigate the transition.
• Assess and Track Change Maturity: Develop a change management maturity index to evaluate and track customers’ ability to drive change. This enables CSMs to personalize their approach and provide targeted support.
• Segment and Personalize: Segment customers based on their needs, personas, and roles to deliver tailored communication and support. Utilize a mix of digital and human interactions to foster engagement and address specific needs.
• Celebrate Success: Recognize and celebrate customer achievements throughout the change process. This positive reinforcement reinforces the value of the change and motivates further adoption and engagement.

By understanding and addressing these challenges, CSMs can become effective change agents, guiding customers through successful transitions and fostering long-term relationships built on trust and mutual success.

Did you enjoy what we’ve written out here? Join our Slack community for more insights on the Customer Success Landscape and trade conversations with over 400 European CS Professionals.

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