The Dashboard View
“The signature is in the folder and the money is committed for another year.”
The Real View
“The signature is from a procurement officer in Delaware and the users have not logged in since October.”
“The contract is valid and the commission is paid.”
“The relationship is dead and we are just holding a wake that lasts .”
Sarah looked at the monitor and she smiled. She liked the green bars on the dashboard and she liked the way the numbers moved up. Hana looked at the chair in her office and she sat down. The chair was hard and the room was too bright. She had spent chasing the champion at Vertex and the champion had stopped answering. He did not decline the meetings but he did not attend them. He was a shadow on the calendar and then he was gone. Then the PDF arrived from a stranger. It was a signed renewal and it was for the full amount and it was a lie.
The Illusion of Retention
I yawned during the middle of the department meeting yesterday. It was not a small yawn and I did not cover my mouth in time. My boss was talking about “retention excellence” and the air in the room felt thick and used. I was tired of the way we talked about people as if they were lines of code. We treat a renewal like a victory and we treat a customer like a fortress we have successfully defended. But a fortress can be full of gold or it can be full of bones. If the doors are locked and the fires are out then it does not matter that the flag is still flying.
Hana watched the email chain. She had sent a thank-you note to the new contact in procurement and the contact did not reply. She sent an invitation for a kick-off call for the new term and the invitation sat in the void. This was a ghost account. The system called it a “renewed” account and the leadership called it a “win” but Hana knew the truth. The customer had said yes to the contract because it was easier than saying no. They had signed because the cost of switching was higher than the cost of the subscription for one more year. They were staying because they were stuck and they were not staying because they were happy.
Cameron M.K. is a supply chain analyst and he understands the weight of things that do not move. He told me once about dead stock. He said that a warehouse can look full and prosperous and the inventory can be worth millions on a balance sheet. But if the parts are for machines that no longer exist then the warehouse is just a very expensive graveyard. He said the hardest part of his job is convincing the owners to throw away the things they already paid for. They want to believe the value is still there because they can see the crates.
“The hardest part of my job is convincing the owners to throw away the things they already paid for. They want to believe the value is still there because they can see the crates.”
– Cameron M.K., Supply Chain Analyst
A customer success manager is often forced to be a warehouse manager for dead stock. We look at the “renewed” accounts and we see the crates on the shelves. We see the contracts and we see the recurring revenue. But 42% of renewed SaaS contracts are effectively abandoned within the first ninety days of the new term. This is a real number and it is a cold number. It means that nearly half of the people who sign the paper have already stopped using the tool. They are paying for a ghost and we are billing the ghost. We call it retention but the supply chain would call it a liability.
The Silence is Absolute
The system is built to reward the signature and it is not built to reward the connection. When the data is green the questions stop. A manager sees a renewal and he moves to the next problem. He does not ask if the champion is still there and he does not ask if the value is being realized. He sees the money and he feels safe. This is a mistake and it is a common mistake. It is the mistake of confusing the map for the road. The map says we are in a good place but the road is covered in weeds and the bridge is out.
Hana tried to call the technical lead at Vertex. The call went to a recorded message and the message said the mailbox was full. She tried to find the lead on LinkedIn and she saw that the lead had changed his job title three weeks ago. He was gone and he had not told her. No one at Vertex had told her. They just let the procurement office handle the paperwork and they moved on to their new lives. The software was still running in the background of some server and the bill was being paid by an automated system and the silence was absolute.
Finding the Pulse
The industry needs people who can see the silence. It needs professionals who do not just look at the PDF but look at the pulse. This is why specialized recruiting matters in this field. Organizations likeNextPath Workforce Solutions focus on finding the kind of talent that knows how to differentiate between a contract and a commitment. They look for the CSM who notices when a champion stops opening emails and the CSM who understands that a silent renewal is often a precursor to a loud churn.
If you hire for the signature you will get signatures. If you hire for the relationship you will get the truth. The truth is often uncomfortable and it is often messy. The truth is that a customer who renews out of inertia is a customer who is already looking for the exit.
96%
Retention Rate
The Waiting Room
60%
Real Market
The Wake-Up Call
I remember a project I worked on ago. I was so proud of the renewal rate in my territory. I had a 96% retention rate and I felt like a king. Then the market shifted and a new competitor entered the space with a lower price point. My 96% rate dropped to 60% in a single quarter. I realized then that I had not built a kingdom. I had built a waiting room. My customers were not loyal and they were not engaged. They were simply waiting for a reason to go. I had been lulled into a false sense of security by the green bars on my screen. I had ignored the fact that my champion meetings were being attended by junior associates who did not have the power to buy a sandwich, let alone a software suite.
We must stop treating the renewal as the finish line. The renewal is just a checkpoint. If we celebrate the signature but ignore the silence we are lying to ourselves. We are counting money that has no future. We are managing a warehouse of dead stock and we are wondering why the building feels so cold.
Friction is Evidence of Life
Hana stood up and she walked to the window. She could see the city and she could see the lights. Every light was a business and every business was a collection of people. People have motives and people have fears and people have limited time. They do not want to be “managed” and they do not want to be “retained.” They want to be heard. They want to know that the tools they buy are actually solving the problems they have.
She went back to her desk and she did not open the Vertex folder. She opened the folder for a small account that was struggling. It was an account that had not renewed yet. The champion was frustrated and the data was red. But the champion was still calling her. The champion was still complaining. The champion was still fighting.
“This one is alive,” Hana said to the empty room.
She picked up the phone and she dialed the number. The man on the other end answered on the second ring. He sounded tired and he sounded angry. Hana smiled because anger is a form of engagement. Anger means he still cares. Anger means there is still a relationship to save. The signed renewal from Vertex was a tombstone but this angry phone call was a chance.
We spend so much time trying to avoid the friction of a difficult conversation that we fail to notice when the friction is gone. When the friction is gone the heat is gone. When the heat is gone the engine is dead. A signature is a cold thing and it is a flat thing. It has no breath and it has no voice.
I will not yawn in the next meeting. I will ask about the ghosts. I will ask my team to show me the accounts that renewed without a word. I will ask them to find the champions who have gone silent. We will look past the green bars and we will look for the pulse. If we find a pulse we will fight for it. If we find a ghost we will admit it. It is better to know you are standing in a graveyard than to pretend you are at a party.
―
A signature is a fence that keeps the revenue in but the spirit has already climbed the wire.
―
The industry will continue to measure the signatures because they are easy to count. They will continue to celebrate the green bars because they look good in a board deck. But the real work of customer success happens in the silence between the signatures. It happens when you realize that a “yes” from procurement is not a “yes” from the people who matter. It happens when you stop being a clerk and start being a partner.
understands this distinction. They know that a great CSM is a translator who can turn the silence of a customer into an action plan for the company. They place people who are not afraid of the red data and people who are suspicious of the silent green data. They understand that the full customer journey is a long road and the renewal is just a signpost along the way.
I look at the PDF on my screen. I see the digital signature and I see the date. I do not feel like celebrating. I feel like I have been given a one-year extension on a problem I have not solved yet. I have to find the ghost of Vertex and bring it back to life. It is not a win. It is a second chance. And in this business a second chance is the most valuable thing you can get. I will take the second chance and I will try to build something that lasts longer than a contract. I will try to build a relationship that does not need a fence to keep it from leaving.
Comments are closed