Mastering Pooled Customer Success: Boost Efficiency & Growth
Are you considering moving to a pooled model for your customers?
Many companies are exploring this to become more efficient and scalable.
But is that the right approach for you?
Here's what you need to know to make an informed decision.
What is a Pooled Model?
In a pooled model, instead of assigning each customer to a dedicated account manager, a team of customer success managers (CSMs) collectively handles a group of accounts.
This approach can be useful for small and medium-sized businesses (SMBs) and some mid-market segments in particular.
💡According to a recent study by Gainsight, 63% of SaaS companies are now using some form of pooled customer success model, up from 47% in 2020.
Keys to Success
There are three key elements for success:
Clear Segments
Define your customer segments carefully.
Some industries may need specialized attention, so consider having CSMs focus on specific verticals within the pool.
Escalation Rules
Set clear guidelines for when and how to escalate issues.
Be cautious not to overwhelm your team with too many escalations.
Well-Defined SLAs
Set clear expectations for the level of service you'll provide.
Without proper service level agreements (SLAs), team members might approach tasks differently. And this can lead to inconsistency.
💡Nick Mehta, CEO of Gainsight, said it well: "The key to a successful pooled model is striking the right balance between efficiency and personalization. Clear segmentation and well-defined processes are key".
The Importance of Clarity
When implementing a pooled model, leave no room for confusion.
If you spot a gap in your process, address it fast. Things can spiral out of control if left unchecked.
For more insights on maintaining clarity in customer success, check out my guide on avoiding assumptions in customer success.
Benefits of a Pooled Model
💡Research by the Customer Success Association reveals several key advantages of the pooled model:
Improved Efficiency
CSMs can handle a larger number of accounts, maximizing resource usage.
On average, pooled models allow CSMs to manage 23% more accounts.
Consistent Service
With standardized processes, customers receive more consistent support.
78% of companies reported improved consistency after implementing a pooled model.
Flexibility
The team can easily adjust to fluctuations in workload or customer needs.
Knowledge Sharing
CSMs can learn from each other's experiences across various accounts, leading to a 15% increase in problem-solving efficiency.
To learn more about improving efficiency in customer success, read my article on time-saving tips for customer success productivity.
Challenges and Solutions
Implementing a pooled model isn't without its challenges.
Here are some common pain points and potential solutions:
Ensuring Consistent Service
Set up robust training programs and create detailed playbooks for common scenarios.
Managing Customer Expectations
Communicate the benefits of the pooled model to customers and provide a smooth transition period.
Balancing Efficiency with Personalization
Use technology to maintain customer context and history. This will allow CSMs to provide personalized service efficiently.
Measuring Individual CSM Performance
Develop new KPIs that focus on team performance while still recognizing individual contributions.
For more on overcoming challenges in customer success, see my guide on customer success challenges and how to overcome them.
Technology and Tools
A successful pooled model often relies on the right technology stack.
💡A survey by ChurnZero found that companies using specialized customer success software saw a 32% improvement in customer retention rates.
Consider implementing:
Customer Relationship Management (CRM) systems
Shared inbox and ticketing tools
Knowledge bases for quick information access
Analytics platforms for tracking team and individual performance
Case Study: Success in Action
TechCo, a mid-sized SaaS company, implemented a pooled model for their SMB customers.
Within six months, they saw:
30% increase in customer satisfaction scores
25% reduction in response times
20% improvement in CSM efficiency
Key to their success was a phased rollout, extensive training, and ongoing feedback from both customers and CSMs.
Best Practices for Implementation
When transitioning to a pooled model:
Start with a pilot program
Invest in comprehensive training for your CSM team
Review and refine your processes over time
Maintain open communication channels with customers
Use data to drive decision-making and improvements
💡Jason Lemkin, founder of SaaStr, advises: "When implementing a pooled model, start small and iterate. Don't try to boil the ocean all at once".
For more on implementing new strategies in customer success, read my guide on customer success processes for startups.
Moving Forward
If you're considering a pooled model for your mid-market customers, start by clearly defining your segments, escalation rules, and SLAs as I’m describing in detail in the next section.
The key is to be as clear and specific as possible in planning and execution.
💡Check out my 150-page Customer Success Templates Collection. It's an all-in-one resource packed with everything you need, from customer onboarding to renewal planning—useful for setting up a pooled model. Stop wasting time creating templates from scratch—Make your life easier today!
🔒Exclusive Insights: Diving Deeper into Pooled Models
Want to get a competitive edge in implementing a pooled customer success model for your organization?
Upgrade to premium for in-depth analysis and expert strategies.
In this section exclusive to my paid subscribers, you'll discover:
Detailed case studies of companies that successfully transitioned to a pooled model
Step-by-step implementation guide with timelines and milestones
Advanced strategies for optimizing team structure and workload distribution
Best tools and technologies to support pooled customer success
⬇️Download my exclusive Pooled Customer Success Model Implementation Checklist
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1. Case Studies: Successful Transitions to Pooled Models
Let's look at three real-world examples of companies that successfully moved to a pooled customer success model.
These case studies show how different types of businesses tackled the challenge and what they learned along the way.
a. Salesforce - B2B SaaS
Background and challenges:
…