Why VC Communities Should Include a Customer Experience Expert

The number of Venture Capital firms shining a spotlight on customer experience with their own portfolio companies is on the rise. And given the recent conversations we’ve had with several Venture Capital (VC) and Private Equity (PE) firms, we know this trend isn’t going away anytime soon.

More VC firms are embracing the “community” approach and implementing software such as Moblize, Union, and Hivebright, to create platforms where founders and subject matter experts can come together to share best practices, helpful resources, and valuable insights.

So, what’s driving this strategic focus? It’s the appreciation that “investing in your investment” is a key competitive differentiator and the recognition that it puts portfolio companies in a better position to deliver ROI for the firm.

The Role of CX in the VC Platform

Venture Capital firms understand that choosing an investor is an important decision for founders.

Gone are the days when money was the primary incentive. Today’s entrepreneurs want a partner who will not only help scale their business but also deliver highly relevant, meaningful value to the companies they invest in. VCs have begun doing this by assembling a network of experts and industry leaders who help support the success of their portfolio companies.

One growing area of focus for VCs – the customer experience.

We’ve seen firsthand with our own clients how a strong focus on customer loyalty and retention will increase the value of a VC firms’ investment. In fact, many of our clients have shared the Net Promoter Score data that we deliver so it can be used as an important ingredient in valuation discussions during a fund raise or acquisition.

That’s why more VC firms are encouraging their portfolio companies to make the customer experience a prominent focal point as they grow. Insight Capital is just one of many VC firms that has written extensively about the importance of customer retention.

Admittedly, the increased focus has been a welcome trend for us at Satrix Solutions, because VC and PE firms often advise their portfolio company executives to hire experts to guide them on the best strategies for retaining and growing customers. In addition to our extensive knowledge on how to acquire reliable, representative data, investors often prefer Net Promoter Score and other CX insights to be derived by an independent, 3rd firm, thereby increasing their comfort that the data can be trusted.

How a CX Expert Can Strengthen Your VC Platform

One way we’re supporting VC firms in their effort to maximize the effectiveness of their platform is by serving as the community’s customer experience expert. For some VC firms we’ve set up virtual office hours where founders can come to us for guidance and direction on their company’s voice of the customer program.

For others, we’re guest participants in group channels dedicated to customer experience research where conversations can range from forming a customer advisory board to understanding the reasons behind customer churn.

Soon, we’ll be participating in a webinar with Insight Capital on how to drive greater ROI from Net Promoter Score programs – a topic requested by their portfolio companies.

Of course, we also offer customized engagements for those companies that recognize the importance of partnering with a trusted advisor who can improve customer service delivery, enhance sales effectiveness or evaluate your marketing strategy and competitive positioning.

Like offering incentives to attract and retain top talent at your company, VC firms are now seeing the advantages of providing additional perks to support founders. With so much competition for investments, sourcing a strong network of experts who will ensure your community is positioned for long-term success is a wise investment.

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By |2019-08-26T14:00:10-07:00August 26th, 2019|Categories: Customer Experience|