CASE STUDY: How 1 Guest House Optimized Customer Service Development Training and Boosted Its Employee Engagement by 110%

March 26, 2023
Category: Case Studies

User and Customer Journey

The interesting thing about 1 Guest House is that they cater to a wide variety of customers, ranging from multinational corporations to small family businesses. A large portion of their clients sign up for their services in a nocontact, selfservice process. Meanwhile, larger customers may opt to get in touch with their sales team or take advantage of their channel partner program.

Creating a Customer Centric Mentality

Originally, there was no concept of Customer Success and no proactive outreach at 1 Guest House. The company only had a customer service team that received mediocre quality ratings. After 2 years in business, the company realized it needed to redesign their approach with customers and put the customer at the center of their philosophy and decision making.

A Neglected Customer Base

In addition to the training program, they began using a combination of phone calls and emails to re-engage and build relationships. Additionally, they are providing personalized customer experience and product education to ensure customers’ success. The team is also leveraging account-based marketing tactics to engage customers. By doing this, they are able to provide the right message, to the right customer, at the right time.

The team’s strategy is not typical of many organizations as they are making up for lost time with customers who have been neglected. They are reaching out to those who are both high-value and high-risk based on their product usage metrics. To build relationships and provide personalized experiences, they are using a combination of phone calls, emails, and account-based marketing tactics. This allows them to deliver the right message to the right customer at the right time. Their goal is to ensure the success of their customers.

Onboarding Process

In order to ensure a seamless transition, new customers are now provided with dedicated support. Landlords are provided with a point of contact from the Customer Success team, who use an in-house workflow system to ensure smooth hand-off from Sales.

Team Effectiveness

To measure the success of the new training, renewals are the primary indicator, while customer engagement is the secondary metric. The team was initially focused on re-engaging a customer base that had become despondent. The results were remarkable: the high-risk cohort experienced a renewal rate of 5%, which rose to 40% after 6 months of proactive engagement. Across the entire customer base, the renewal rate increased by 10-20%.

Customer Health Score

Currently, a team is in the process of creating a general, weighted client health rating. This is not a unified system yet, but rather a spreadsheet that needs to be manually updated on a regular basis.

Account Segmentation and Assignment

Customer assignments are divided into groups based on revenue and product line. The most experienced Customer Success Managers handle the highest revenue customers.

Organizational Structure

Customer Success is a new program that comprises four individuals. Two of them make up the support team, which was situated in New York until Q2 2022, when it was consolidated and moved to the Georgia office. Although both the Support and Success teams have distinct duties, they are present for the same meetings and seminars, and work together in close collaboration. The Customer Success team is under the supervision of the executive in charge of Finance and Operations.

Hiring and Compensation

The ideal hire for a Customer Success Manager will be passionate about customer interactions and possess strong conflict resolution skills. They should be excited about the prospect of speaking with customers, teaching them, and travelling to them if necessary. The team offers variable compensation plans based around renewal rates and customer engagements, the split being 80% base and 20% variable. A key goal is to achieve a 90% connection rate and a 50% renewal rate among highvalue customers.

Customer Success

At 1 Guest House, the company has taken a proactive approach to customer success. They have introduced their customer success  development course for their customer success team that is dedicated to understanding customer needs and proactively reaching out to customers. The training has taught the team how to acquire feedback from customers to ensure that the customer‘s experience is of the highest quality. With this new training program, 1 Guest House has seen an increase in customer satisfaction ratings and customer loyalty.