How Customer Success Led to the Creation of HubSpot’s Service Hub

Everyone operating a business or company today understands the basic principle: retaining an existing customer is always cheaper and more economical than onboarding a new one.

And towards that end, one thing is critical—keeping your customers happy and satisfied with your offerings.

The importance of “Customer Success” in a business's growth and sustenance has surged over the past decade and a half, and the means of measuring it have also changed drastically over the years. As a result, a new outlook is required on this aspect of marketing.

Suppose you want to increase your Client Lifetime Value (CLV). In that case, you will have to utilize your existing customer base as a profitable channel to upsell and rely on them to advocate for your brand through word-of-mouth advertising, also known as brand evangelization. To achieve that, you will have to give existing and potential customers almost equal standing and treatment; you will need to nurture them, maintain consistent communication, and convince them that what you provide will bring them value.

Expanding on this viewpoint leads us to “Customer Delight”, the last yet often forgotten stage in this process. Successful navigation of this stage is crucial to turn your existing customers into a dependable, recurring revenue stream through brand evangelization. If you are overlooking this stage in the context of your existing customers, you are losing cross-selling and upselling opportunities, as well as potentially missing the chance to improve your products or services.

It is of utmost importance that your brand’s most valuable asset, i.e., your customer base, is looked after. To help with this crucial element of customer success strategy was one of the primary reasons behind the launch of HubSpot’s Service Hub back in 2018.

Let’s take an in-depth look at why a service like HubSpot’s Service Hub is necessary.

What was the idea behind the creation of the Service Hub?

As per David Barron, HubSpot's Director of Service Hub, the main impetus for the creation of the system in 2018 was the recognition of the fact that many of their new customers were the result of referrals. Along with the realization that, while HubSpot was providing its customers with a comprehensive end-to-end customer experience, they had not yet enabled their customers to achieve the same. By creating the Service Hub, HubSpot looked to empower its customers to provide a curated, end-to-end customer experience.

Prior to the creation of Service Hub, SMBs often had to use multiple-point solutions like live chat, ticketing, and NPS to deliver a great post-sale experience. This caused customer service/success teams difficulties and harmed the customer experience. Through the Service Hub, these tools can be integrated into a single system that syncs with CRM data.

The creation of Service Hub also helped to bring about another fundamental change—operators started viewing their business as a flywheel rather than a funnel, where marketing, sales, and service feed into each other and where customers are not merely the output. This approach optimizes the entire customer experience while enhancing business growth.

What isCustomer Success? What is the distinction between Customer Success and Customer Service?

While they can seem very similar on the surface, there are subtle distinctions between Customer Success and Customer Service. For clarity on the topic, it is also relevant to consider Customer Support in the discussion.

In a blog for HubSpot, Mike Redbord, previously the GM and VP of Product for Service Hub, listed the key differences between the three.

1. Customer Support

Customer support is reacting to your customers' needs when they tell you, "I have a problem."

Basically, it's a process initiated by the customer, and the business reacts to that to ensure that they help their customers with whatever they need, whenever they need it.

2. Customer Service

Customer service is saying to a customer, "I have something for you." — instead of a customer saying, "I need something from you."

Customer service is a more proactive approach. It involves guiding the customer to get whatever they require, with the end goal of enhancing the customer experience.

3. Customer Success

Customer success is saying to customers, "Let's be partners!" so that you can work proactively together to achieve their long-term goals.

Customer success is initiated by the business itself, with the goal of increasing value for both the company and the customer. It might involve cross-selling or upselling products or services that the customer was not aware would provide them value, and as such, it is a process that requires anticipation.

How can sales, marketing, and support teams collaborate to ensure a delightful customer experience?

The key aspect is to think of the sales journey from the POV of a Flywheel model instead of a Funnel. This mindset emphasizes an end-to-end customer experience, showing how each function meets customer expectations. 

It's crucial for all teams to use a single system of record, maintaining a centralized base of all communication with leads and customers to enhance every interaction's value. Focusing on interactions between functional areas, like the transition from sales to service, and optimizing these touchpoints can significantly improve the customer experience, foster loyalty, and promote your brand.

If you need help auditing your customer support or customer success systems and processes, reach out to us or find experts who specialize in RevOps and HubSpot CRM! As a RevOps agency with a team of HubSpot CRM experts, we will test your systems and guide you on the path forward.