evolve your revenue growth engine with customer success

Larry TrichelDirector GCS Partner EnablementNovember 10, 2015

Evolve Your Revenue Growth Engine with Customer Success

Global Customer SuccessPartner Enablement Strategy

2© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

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Evolve Your Revenue Growth Engine with Customer Success

Larry Trichel

Director GCS Partner Enablement

November 10, 2015


• Why Global Customer Success?• How does customer lifecycle

management drive growth?• What role does partner play?• What should partners expect from Cisco

to accelerate the journey?

Global Customer Success & Partner Revenue Growth Evolution


Customer Success Methodology

Cisco Confidential© 2015 Cisco and/or its affiliates. All rights reserved.

People

Automation

Process Analytics

7© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

We've seen the market shifting towards a subscription economy, where the value of a customer is realized over time instead of just up front and customers demand tangible proof of outcomes.

-Chuck Robbins


Reality #1 Reality #2

We live in a subscription economy

Your Customer is in the driver’s seat



Do you have a dedicated team to address your subscription business?

Audience Poll


Our Response is a Process Change

Value Realization:Feature, Solution,

Function Utilization

Dedicated Teams:Specialized Expertise

Scale EngineOptimized:

Programs and Processes

Digital Platform:Analytics to Guide

Sales Motions

Renewal Focus:Maximize Annuity

Revenues


Six Levers of Customer Success

Optimized for Partners & Customers

Analytics

Demand Gen

ProcessPrograms

People

Automation


Global Customer Success Goals

C L E A RCapture Install

BaseLeverage the

Digital PlatformEnsure Value Realization

Accelerate New Opportunities

Realize Goals and Potential


The Consumption Gap is based on the idea that technology companies can add features and complexity to their products at a much more rapid rate than their customers have the ability to consume them.

-J.B. WoodPresident and CEO, TSIAConsumption Economics: The New Rules of Tech


Transforming Our Sales Motions

Cisco Confidential

End-To-End Customer Engagement ModelTHE GOAL

Customer Maximize rate

of value capture

PartnerMaximize rate

of revenue capture: reduce operating costs; create

customer loyalty

RENEWShould be non-event as customers realize the value of solution they bought

EXPANDCustomers consume more

offers, features and functionalities and buy more seats

ADOPTAccelerate value

realization for customers

LANDInitial sale of all product and

services attach, ownership for integrated account management

and delivery of business outcomes


Success means actively managing the customer relationship after the initial sale


Initial sale Post-sale

Greatest revenue opportunities

$ $ $ $



Digital disruption: displacing incumbents, reshaping markets

According to a study conducted by the Global Center for Digital Business Transformation, 4 of the top 10 incumbents in the industries

studied will be displaced in the next five years


One Journey, One Experience

RENEWEXPANDLAND ADOPT

AWARE SHOP BUY RECEIVE INSTALL USE RENEW

CUSTOMER LIFECYCLE

DIGITAL EXPERIENCE PLATFORM


Active lifecycle management means

on-going revenue

$


1.BUY

2.RECEIVE

3. INSTALL

4. USE

5.RENEW

6. REFRESH

ADOPTEXPAND

MIGRATE

SVC 1% RCR = $87M

SVC 1% ATTACH = $170M

Customer Outcomes: Increase revenues, reduce risk, reduce

cost, accelerate time to market

Cisco & Partner Outcome:Maximize rate of revenue capture; reduce cost; increase productivity;

drive growth

Customer Lifecycle - The ‘Process’ Of Building Recurring Revenue


LAND-

2ND CHANCE ATTACHCustomer Nurture

2ND CHANCE ATTACHPartner Auto Quote

WELCOMECustomer Nurture

ADOPT/Expand

EXPANDCustomer Nurture

RENEWCustomer Nurturewith Quote

REFRESHCustomer Nurture

RENEWPartner Auto Quote

REFRESHPartner Auto Notify

5

4

3

21

6

Cisco Customer Success Journey- Automated Touch Points


Smart Net Total Care &Partner Support Service

Network Optimization

Collaboration EA

UCS-Director

Cloud Pilot

“Customer” Health Score

Predictive Analytics

Automated Linkage with Land and Renew

Scale with Digital Touch

Partner Success Manager

Virtual Success Manager Call Centers

Customer Success Manager

Automation

Offers GTM Future

Adopt & Expand


Reduced churn

On-time renewals

Up-sell revenue

$


Attracting new customers will cost your company 5 times more than keeping an existing customer.


A 5% increase in customer retention can increase a company’s profitability by 75%.

A customer is 4 times more likely to defect to a competitor if the problem is service-related than price- or product-related.

The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%.

5X

Source: Forbes, Never Underestimate the Value of Retention

The True Cost of Churn

http://www.forbes.com/sites/alexlawrence/2012/11/01/five-customer-retention-tips-for-entrepreneurs/



Initial sale Post-sale

Achieving business goals = Recurring revenue



3.5x higher retention rate

20% customer lifetime value growthActionInsight

Software renewal rate increase 50 to 90%

What’s in it for you?


Invest in People, Process & Automation and Analytics to enable actionable insights allowing customers to accelerate adoption and

maximize benefits from their IT investments


Customer Success & You


Adoption Activation

Adoption Delivery

Adoption Scale

60 Days30 Days 120 Days 150 Days 180 Days90 Days

• Expand Practice• Demand Generation • Ongoing Monitoring & Management

• Global Customer Success Partner Workshop

• Collateral Development (QBR, Webinar)• Health Score Methodology• Value creation

• Hire Customer Success Manager• Sales & Technical Team kickoff

1

23

Adoption Activation

Adoption Delivery

Adoption Scale

Adopt & Expand Practice Development Methodology



Cisco’s Partner Success Managers are here to help


Mutual Engagement On-Going

Activity

Partner Adoption Planning

Adoption Webinar

Adoption Workshop

Adoption Specialist

Success Story

Outcome

With our partners, identify their services strategy, growth plan and managed services adoption and develop plan for implementing and executing

Webinars aimed at educating and sharing best practices around Services Adoptions

Workshops with partners to transfer best practice and develop adoption practice around Cisco Adoption Playbook

Partners assigning dedicated teams to oversee and execute Adopt / Expand practice within their organization. Share best practices, metrics and business outcomes

Number of customers successfully executed and benefited from the collector deployment, activation of services and implemented Adopt/Expand process

Partner Enablement: Adopt / Expand


Organizational structure governance

Finding the right skill sets

Accessing the right data

Operationally managing the CSM organization

Measuring the effectiveness of the team

None, we have a fully functioning Customer Success Org operating

Audience Poll

What do you think will be your #1 challenge in creating your own customer success practice?



Find out how to promote customer loyalty with targeted engagement plans.

Improving Customer Relevance and Business OutcomesDecember 1, 2015

Discover the powerful impact of data and analytics in your post-sale initiatives.

Impact of Insight: Data & Analytics in Customer SuccessDecember 15, 2015

See how to create customer advocates to expand your business opportunities.

Upcoming Sessions

Evolving Your Install Base Management StrategyJanuary 5, 2016


Customers are in the drivers seat in a subscription-based

economy


Customers want a commitment to helping them realize their

business outcomes

We must go beyond the initial sale and focus on the entire

post-sale engagement to keep existing customers

Summary

Thank you.

evolve your revenue growth engine with customer success

Technology