how customer success-centricity drives revenue, growth, and valuations - rd summit 2016
TRANSCRIPT
How Customer Success-centricity�Drives Revenue, Growth, and Valuations
Hello, my name is Lincoln Murphy I’m excited to be presenting at
@LincolnMurphy
Stay longer
Buy More
Expand Internally
Advocate Externally @lincolnmurphy
Make your CUSTOMERS
powerful!
They’ll make YOU�
powerful!
HOW will they make you powerful?
Stay longer
Buy More
Expand Internally
Advocate Externally @lincolnmurphy
This Directly Impacts Company
VALUATION
Revenue x Multiplier = Value Company Valuat ion Calculat ion
Revenue x Multiplier = Value o There’s
more!
Company Valuat ion Calculat ion
Revenue x Multiplier = Value o Customer Lifetime Value (LTV)o Customer Acquisition Cost (CAC)o Net Revenue Retention (NRR)o Total Addressable Marketo Talent Acquisition
o There’s more!
@lincolnmurphy
Company Valuat ion Calculat ion
How do you make your customers POWERFUL?
By making them SUCCESSFUL
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Customer Success is NOT…• Just a Department• Customer Support• Account
Management• Happiness or
Delight
• Churn Mitigation• Saving Customers• “Checking in" with
customers• Customer hand
holding @lincolnmurphy
Customer Success is a GROWTH
ENGINE
Customer SUCCESS-
driven Growth
As customers SUCCEED and
EVOLVE…
…their relationship�with us should �
EVOLVE and GROW
Year 1
100%
Customer Lifetime Value
@lincolnmurphy
Year 1 Year 2 Year 3 Year 4 Year 5
80%
20%
Customer Lifetime Value
@lincolnmurphy
Year 1 Year 2 Year 3 Year 4 Year 5
> 95%
< 5%
Customer Lifetime Value
@lincolnmurphy
Customer Lifetime Value
Year 1 Year 2 Year 3 Year 4 Year 5
> 98%
< 2%Year 6
@lincolnmurphy
Resource Allocation
Year 1 Year 2 Year 3 Year 4 Year 5
< 2%
> 98%Year 6
@lincolnmurphy
RENEWAL & EXPANSION are part
of the Customer’s SUCCESS
Customer Success Management is the process of moving the customer toward their ever-evolving Desired Outcome.
“
” - Lincoln Murphy @lincolnmurphy
Customer Success Management is...
• Segmentation• Orchestration• Intervention
• Instrumentation• Operationalization• Enrichment
Customer SuccessManagement
@lincolnmurphy
Grow BECAUSE of your effort, not IN SPITE of it
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Interactions Start�
EARLY
“The seeds !of churn are !planted early” !– Lincoln Murphy!@lincolnmurphy!
Avoid�BAD FIT
Customers
Who Feels the ACUTE Pain of Bad-fit Customers?
• Sales• Implementation• Product• Marketing
• Support• Account
Management• Customer Success
Management• Your Customer!
@lincolnmurphy
Acquire customers with
SUCCESS POTENTIAL
Technical Fit
Functional Fit
Competence Fit
Experience Fit
Cultural Fit
@lincolnmurphy
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
RequiredOutcome
AppropriateExperience
Desired Outcome
WHAT your customer needs to achieve
HOW they need to achieve it@lincolnmurphy
CustomerCharacteris9cs
Method
Customer(segment)
Desired Outcome
@lincolnmurphy
RequiredOutcome
AppropriateExperience
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Needtowork,no9metoeat
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Assignedsea9ng,WiFi,Foodservice,legroom
BusinessTraveler
Savemoney,enjoy
des9na9on
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Cheapfares,snacks&drinks
FamilyGoingonVaca9on
InboundMarke9ng
Desired Outcome – Inbound Marketing
@lincolnmurphy
MoreQualityLeads
DIY,no$$$,tech-first
@lincolnmurphy
MoreQualityLeads
API,self-service,Slacksupport
channel
Early-stageStartup
Desired Outcome – Inbound Marketing
InboundMarke9ng
Mustwork,has$$$,less-
tech @lincolnmurphy
MoreQualityLeads
GUI,24/7Support,3/yrcontract
F500Dept
Desired Outcome – Inbound Marketing
InboundMarke9ng
COVERAGE LEVELS and RESOURCES are
determined by DESIRED OUTCOME
DESIRED OUTCOME is the key to SCALING
Customer Success
@lincolnmurphy
Churn is the SYMPTOM of an Underlying Disease
Brasil-specific Learnings• Lack of Trust between
Customers and Vendors
• Relationships matter a lot
• Failure to Logically Segment Customers hurts Scalability
• Lack of deep CSM talent pool
• Lack of Purpose-built CSM for Brazilian Market
• Unique Financial Instruments (Boleto)
@lincolnmurphy
Bring Learnings FROM Brasil to
the WORLD
Customer. SUCCESS.
When your CUSTOMERS
Succeed...
YOU Succeed!
Thank You!@lincolnmurphy�[email protected]
Awesome! Thanks for your attention.Learn more about me at http://sixteenventures.com
And contact me via [email protected]
@LincolnMurphy
How Customer Success-centricity�Drives Revenue, Growth, and Valuations