Why Misalignment Is a Big Deal
When Customer Success (CS) and Product teams aren’t aligned, it quietly eats away at your SaaS business. Growth slows, customers leave, and your competitive edge fades. The damage might not be obvious at first, but over time, it can become the single biggest obstacle to scaling effectively. Let’s break down why this happens and how you can bring these two critical teams back in sync.
The Real Cost of Misalignment
Misalignment between CS and Product teams leads to inefficiencies and missed opportunities that hit the bottom line hard. For instance:
A slight improvement in customer retention—just 5%—can increase profits by up to 95%. If teams aren’t aligned, that opportunity is missed.
Companies that achieve alignment between CS and Product grow revenue nearly 20% faster and are significantly more profitable, often by 15% or more.
Misaligned teams consistently report lower customer satisfaction scores, sometimes by as much as 50%, due to disconnected efforts and unclear communication.
These numbers aren’t just abstract statistics; they reveal problems that could hold back your business if misalignment goes unchecked.
Why Teams Drift Apart
Understanding why teams fall out of sync is the first step toward solving the problem. There are three main culprits: silos, competing priorities, and poor data sharing.
Teams Stuck in Their Own Silos
One of the most common challenges is how organizations unintentionally build barriers between departments. CS and Product often operate under separate goals, with minimal overlap or shared accountability. For example, CS might be focused on metrics like customer retention and Net Promoter Score (NPS), while Product is focused on shipping new features and meeting release deadlines. PS: I never made use of NPS and never will.
The lack of communication and teamwork creates a disconnect. Reporting structures can make this worse by reinforcing a “stay in your lane” mindset. When this happens, neither team fully understands the other’s needs or objectives.
Competing Priorities
The differences in focus between CS and Product often lead to tension. Product teams are typically tasked with innovation and building new features to stay competitive, while CS teams are on the front lines, working to keep customers happy and reduce churn.
This divide can result in:
Product roadmaps that fail to solve urgent customer problems, leaving CS teams finding it hard to keep credibility with clients.
CS teams being unable to justify renewals or upsells because customer expectations haven’t been met.
Mixed messages to customers about the product’s direction, leading to frustration and dissatisfaction.
Data Isn’t Shared Effectively
When data is fragmented, teams lose out on meaningful information. Product may have access to usage metrics, but CS might be tracking customer sentiment. Without a unified view of what’s happening, teams miss opportunities to predict problems or spot trends.
For example, a lack of shared data could mean:
Gaps in understanding what customers truly need.
A reactive approach to churn, fixing problems only after they escalate.
Lost chances to create features or solutions that solve common frustrations.
How to Get Teams Back on Track
Alignment doesn’t happen overnight, but with deliberate steps, CS and Product teams can work together more smoothly.
Set Shared Goals Everyone Cares About
The first step is creating shared objectives. This could involve setting OKRs (Objectives and Key Results) that both teams contribute to. For example:
Boost feature adoption by 30% by improving onboarding processes and refining product features using customer input.
By having a common goal, both teams are working toward the same outcomes. Consistently check these objectives in joint meetings to ensure progress is tracked and accountability is shared.
Make Customer Feedback a Team Effort
Customer Success is often the voice of the customer, but that input doesn’t always make its way to Product in an organized way. To fix this:
Build or use a centralized platform where customer feedback is collected, organized, and prioritized.
Hold monthly Voice of the Customer sessions where both teams discuss key takeaways and plan next steps.
Formalize the process for submitting and tracking feature requests based on customer input.
This ensures that Product teams have a clear view of what matters most to customers and can make smarter decisions.
Work Together During Sprints
Bringing CS into the product development process can make a big difference. For example:
Involve CS reps in sprint planning and reviews to share what they know about customer pain points.
Assign CS team members to specific product squads working on features relevant to their experience.
Run joint user testing sessions where both teams can observe how customers interact with new features.
This approach ensures that customer needs are represented throughout the development process, not just added later.
Break Down Data Silos
To truly align, CS and Product need access to the same data. A shared customer data platform can bridge the gap by providing information like:
Product usage metrics that show trends and opportunities.
Customer health scores that combine engagement and sentiment data.
Dashboards that track progress toward shared goals.
Regular joint sessions to analyze this data can also uncover patterns that might otherwise be missed.
Turning Ideas into Action
To implement these strategies, follow a structured approach:
Audit Current Processes: Identify where misalignment is happening and how it’s impacting results.
Set Clear Objectives: Define shared goals that both teams can rally around.
Form a Task Force: Create a cross-functional team with representatives from both CS and Product to lead the effort.
Develop an Action Plan: Outline specific steps for solving alignment challenges, starting with the most impactful areas.
Introduce Gradually: Roll out new processes, tools, or meetings one step at a time to avoid overwhelming the teams.
Train the Teams: Help both groups understand the value of alignment and how to work more effectively together.
Monitor Progress: Regularly review outcomes and refine your approach as needed.
Metrics That Show It’s Working
Keep an eye on these key indicators to measure progress:
Net Revenue Retention (NRR): Aim for over 100 percent to show growth from existing customers.
Feature Adoption: At least 50 percent of users should interact with new features within three months.
Customer Health Score: Strive for a score above 8/10, blending usage data with customer sentiment.
Time to First Value: Ensure new customers see results within 30 days.
Collaborative Projects: Track the percentage of joint initiatives completed—aim for more than 80 percent.
The Takeaway: Fixing Misalignment Is Worth It
When Customer Success and Product teams work together, they drive growth, improve customer satisfaction, and build a more resilient business. Misalignment doesn’t have to derail your progress. With shared goals, open communication, and a focus on the customer, you can turn this challenge into an opportunity for long-term success.