harnessing the power of continuous learning in customer success featuring waterstone management...

Harnessing the Power of Continuous Learning in

Customer Success

CONFIDENTIAL: Not to be distributed or reproduced without permissionWebinar | Harnessing the Power of Continuous Learning in Customer Success | October 10, 2017

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Today’s Speakers

Hubert SelvanathanPrincipal

Jim ColemanSVP, Customer Success

Today’s Objectives

In this webinar, you will learn:

• Why continuous learning is critical for Customer Success

• How to add process and structure to drive results

• How to set up key enablement tools, analysis and reporting

• What benefits are achieved through continuous learning

Strategy: Enterprise to Customers – E2C

250+ Customers

Team & Locations100 people across 3 officesSan Mateo – HQNYC – Sales & Customer Success Tel Aviv – Lab, Sales & Customer Success

Overview

Tech PartnersAWS, Microsoft, Salesforce, Zendesk, Slack, Segment, ServiceNow

Industry Contributions5 annual Customer Success Summit eventsCEO authored Farm Don’t Hunt: The Definitive Guide to CS


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Waterstone Overview

• Strategy and operations consulting firm

• Exclusive focus on Technology and Services sectors – clients are product vendors and service providers in Tech

• Strategy through execution focus – expert-led and results oriented

• Emphasis on driving growth agenda

• 30+ team, offices in Chicago and Bay Area

Representative Client Portfolio


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What is Continuous Learning Relative to Customer Success

The ability to continually develop and improve a company’s:

- Engagement with customers, and

- Understanding of their customers’ needs

… to deliver ongoing value to customers effectively.


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Changing Market Dynamics Operational Challenges

The Need for Continuous Learning

Why is Continuous Learning Necessary?

In business, the only thing constant is change.


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Applying Continuous Learning Across Customer Success

Customer ExperienceDesign and execute a differentiated CX

Operating ModelDefine roles & responsibilities, processes, metrics

Enablement & ScaleDevelop playbooks, using data and technologies to drive scale

Economic ModelIdentify, measure and communicate CS value

• Define the desired experience across the lifecycle

• Identify ‘moments of truth’ across the journey

• Align cross-functional roles / responsibilities

• Define end-to-end model for Adopt, Expand and Renew

• Design CS operations (segmentation, touch points, health measures, etc.)

• Evolve methodologies in Services, Support and Renewals

• Create success plays for proactive engagement

• Implement data integrations and technologies for insights and scale

• Develop one-to-many engagement model

• Analyze CS impact (e.g., retention, upsell)

• Estimate ongoing post-sales investment

• Define converged offerings


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Structure for Continuous Learning

Ø Setup dashboard to monitor CS execution

Ø Measure customer health and financial performance

Ø Analyze trends and correlations

Operational Analytics1

Common Operational MetricsUsed for Churn Analysis, Correlation

Analysis, Health Scoring

• # of CSM touchpoints• # Customers onboarded• # playbooks executed• # of triggers initiated• Account coverage %• Net retention• Product usage• Customer health


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Ø Optimize segmentation and coverage

Ø Refine playbooks and CSM actions

Ø Adjust customer health scoring

Ø Update dashboards and systems

Model and Process Adjustments




Operational Analytics1 2


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Ø Optimize segmentation and coverage

Ø Refine playbooks and CSM actions

Ø Adjust customer health scoring

Ø Update dashboards and systems

Model and Process Adjustments




Operational Analytics1 2

Ø Establish process owner (e.g. CS Ops) and identify cross-functional participants

Ø Maintain cadence for review of operational effectiveness

Ø Develop process to make adjustments across the customer lifecycle

Feedback Loop3

Chicago | San Francisco | (877) 603-1113 | www.waterstonegroup.comCONFIDENTIAL: Not to be distributed or reproduced without permission

Let’s see continuous learning in practice


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Example 1: Enterprise SaaS Company Looking to Drive Adoption of New Product

Ø Initial set of onboarding, adoption and renewal playbooks established

Ø Initial Customer Health scoring methodology established

Ø Agreed on quarterly cadence to review analytics and make operational adjustments

Ø First review process indicated:

Ø Active usage highly correlated with onboarding velocity and first use in 30 days

Ø Need for additional self-service training/content (based on input from CS and Support)

Model and Process

Ø Established dashboard to monitor CS execution (playbooks executed, # of customers onboarded, ratio of entitled to onboarded users)

Ø Defined metrics to track usage and engagement (e.g. DAU’s, # of log-ins, etc.)

Operational Analytics

Feedback Loop

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Example 1: Applying Continuous Learning

Ø Updated playbooks for accelerated onboarding (including time based triggers)

Ø Development of self-service content around new product offering

Ø Identified additional adoption playbooks: no usage, drop in usage, feature adoption

Ø Surfaced need for one-to-many communications and campaigns across the lifecycle

Ø Need for updating health scoring to incorporate field input (CSM sentiment, sales view, etc.)

Ø Included additional metrics (e.g. # of power users, ratio of active to registered users, time to onboard customers)

Ø Analysis established to measure playbook effectiveness and correlations

Revised Operational Analytics

Feedback Loop

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Model and Process Adjustments2

Example 2: Operational Customer Health

Ø Tech-touch baseline to drive continued engagements

Ø Periodic Customer check-in, value confirmation with CSMs

Ø Monitor for escalations, major events

Ø Mostly reactive

Ø Customer Health requires periodic review, especially with a dynamic market

Ø Regular deep-dive analytics reviews provide insight to hard-to-see details – cohort analysis, trends, predictions based on data

Ø Team retrospectives can still help complete the story with qualitative history

Model and Process

Ø Start with best practices and available knowledge

Ø Tiered (segmented) by Contract Value

Ø Health is based on Engagement, Utilization, & Adoption

Ø Automated monitoring and EWS in place

Operational Analytics

Feedback Loop

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Example 2: Applying Continuous Learning to Customer Health

Ø Updated Campaign targeting, focusing on case studies, value, and alignment to use case

Ø Updated operational SuccessPlays increasing outreach, business review for value alignment

Ø Updated Sales Qualification Criteria to reduce risk in pipeline

Ø Closer alignment with Customer on use case and business value

Ø Improved close rates by Sales due to better understanding of use case, better lead targeting

Ø Enable proactive adjustment from more accurate Health -> drives reduced churn, higher CSAT

Ø Re-segment according to churn risk

Ø Additional automated metrics on communications, content engagement

Ø Manual “CSM Sentiment” as part of EWS

Ø Refined Health Model

Revised Operational Analytics

Feedback Loop Results

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Model and Process Adjustments2

The Role of Technology in Continuous Learning

Technology is a critical component for continuous learning

ü Track real-time changes to operational metrics

ü View trends of key metrics over time in intuitive charts and dashboards

ü Avoid manual data analysis in spreadsheets and crazy pivot tables

ü Implement course corrections with automated programs

ü Involve the whole company in the feedback loop with company-wide access to customer data

A Customer in Great Health (over-utilized!)

But Then The Customer Cancels All Of A Sudden

Tracking Health

Quick Cohort Analysis

Adoption Trends

Monthly Volatility

Contributing Factors


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• Strengthened core CS assets (plays, automated programs, reporting, health scoring, etc.)

• Advanced insights on root cause, correlations, and trends

• Increased CS sophistication / maturity

• Accelerated impact on key business metrics (net-retention, adoption, churn, etc.)

What’s the Output of Continuous Learning in Customer Success?

Better overall experienceHigher ROI with your product

Customers

Increased agility Increased net retention

Company

Effective programsResponsive customers

Customer Success Team

www.totango.com@totango

[email protected]

Jim ColemanSVP, Customer Success

Hubert SelvanathanPrincipal

www.waterstonegroup.com@WaterstoneMG

[email protected]

Questions?