Value Frameworks Part 3: How to Use a Value Framework Across the SaaS Customer Lifecycle

In a world where you never stop selling, delivering value to customers is key to retention and expansion. In this post, I explain how to leverage your Value Framework in each stage of the SaaS customer lifecycle, from acquisition to retention.

Acquisition

To leverage a Value Framework during this stage, SaaS providers must delve deep into understanding the reasons customers choose their solution. By identifying the underlying motivations, businesses can tailor their messaging and positioning to align with customer needs. Whether it's cost savings, increased efficiency, or improved collaboration, emphasizing the value proposition that resonates with the customer's buying reasons will significantly boost the chances of conversion.

Handoff

Give Sales a visual of your detailed Value Framework and have them physically (or virtually) mark it up to identify the customer’s value drivers, use cases and desired outcomes.  Handoff to Post Sales.  PLEASE DON’T SKIP OVER THIS IMPORTANT STEP.  If you do, your Onboarding team will likely use a generic, albeit solid, onboarding approach, implementing functionality without ever really charting and tracking a path to outcomes with the customer. 

 Onboarding

Now, knowing what the customer really cares about, your Onboarding/Implementation team can ensure a fast path to some initial value by launch.  But if you skipped the “mark up” exercise during Handoff, they’ll do a generic, albeit solid, implementation of functionality and the customer will leave this stage having not achieved any meaningful value or even be on the path to that value.

If you did a great Handoff, then the Onboarding team can build check points into the onboarding process, doing Value Framework based alignment at each check point.

Onboarding Wrap Up

Before releasing the customer into the wild, you must sit down with them and the assigned CSM to again review and align on value drivers, use cases and outcomes.  That’s right, pull out that marked up Value Framework and note what’s been accomplished so far:  which outcomes have already been realized or is the customer on the path to realizing.  Further, the customer can help you understand where they want to go next.

Best case, you and the customer are in complete alignment and you can release them into the capable hands of the CSM, knowing their journey to value is healthy.  Other best case:  you and the customer are not aligned.  Why do I say this is also best case? Because it’s better to find out now than 3 months before renewal. 

Post Onboarding

CSMs use that same customer-specific version of the Framework as foundation for cadence calls, health checks and EBRs.  It’s their Google Maps for the customer, ensuring that, come renewal time, the customer has reached their destination.  During this journey, CSMs  should actively monitor customer progress, measure key performance indicators (KPIs), and provide timely insights to ensure customers are on track to achieve their desired outcomes. Regular engagement, feedback loops, and data-driven recommendations can strengthen the customer-provider relationship, allowing for continuous value realization and customer satisfaction.

Expansion and Retention

If your Marketing, Sales, and Post Sales teams have really used the Value Framework to anchor the customer’s journey, then the customer will have achieved at least some of their desired outcomes, making the renewal straightforward.  Further, because these teams have been sharing the whole Framework with the customer, not just the one or two parts the customer cared about at purchase time, the customer will already understand the other ways your offerings can provide value, providing an open door to expansion opportunities.

Conclusion

In the dynamic SaaS landscape, a value framework is essential for guiding businesses towards customer-centricity throughout the entire customer lifecycle. By understanding the reasons customers buy, the outcomes they seek, and the activities required for success, SaaS providers can deliver tailored solutions that maximize value realization. From acquisition to retention, integrating a value framework empowers businesses to forge strong relationships, drive customer success, and ultimately secure their position as trusted partners.