mastering the business of customer success
TRANSCRIPT
Mastering the Business of Customer Success
Guy NirpazCo-founder & CEO of Totango
In case of anemergency…
In case of anemergency…
Customer Successis growing fast! 100
80
60
40
20
02012 2013 2014 2015
Source: Google Trends
Guest Speakers from these notable companies :
We can see it by any market parametersincluding summit interest
2013 2014 2015 2016
100
300
950
1500+
Customer Success is maturing
We’ve learned a lot and we’re here to share
Practical Handbook forCustomer Success Leaders
Available on Amazon / iBook andfor Customer Success Summit 16 attendees
http://www.farmdonthunt.com
The model is not Hunting
Customer Success is Farming!
Young SaplingNeeds close care to take root
Growing TreeConstant nurturing & care
is needed to ensure a successful harvest season
And Harvest
GrowingNew
z
In Renew/Upsell
Cancelled
SAVING ACTIVITY
GrowingNew
The RECURRING nature of the lifecycle determines the operating model
z
In Renew/Upsell
Cancelled
SAVING ACTIVITY
Customer Value over
Customer ManagementSource: The Customer Success Manifesto
New
ON BOARDING ACTIVITY
Growing
NURTURINGACTIVITY
In Renew/Upsell
HARVESTING ACTIVITY
Cancelled
SAVING ACTIVITY
DRIVERS OUTCOMES
Customer Success is a business
and It’s NOT Customer Love
X
Customer Lifetime Value Calculation
+$10,000 / year
+$7,000 / year
-$1,500 / year
$5,500 / year
-$3,000 / year
Annual Contract
Value
Cost to Deliver Service
Gross Margin
Customer Retention
Cost
Annual Profit
Lifetime Profit
YEAR 1(4.5K)NET PROFIT
YEAR 2
$1.0KNET PROFIT
Lifetime Profit
20%CHURN
14%CHURN
10%CHURN
5 YEAR LIFETIME
$28.5KLIFETIMENET PROFIT
$45.0KLIFETIMENET PROFIT
$17.5KLIFETIMENET PROFIT
7 YEAR LIFETIME
10 YEAR LIFETIME
FALLACIESof CUSTOMER SUCCESS3
Customer Success is
NOT Customer Support
X
1
Customer Success
is NOT Project ManagementX 2
Customer Success is
Not Pipeline Management
X3
The Challenges: Prioritization and Focus
1. Which customers need your attention…and why?
2. Where to invest your limited resources for best outcomes?
Portfolio Management is The Model for Customer Success Management
Customer Portfolio
At Risk
In Harvest
Growing
New
Drivers
Results
Risks
ONBOARDING
QBR / NURTURING
USAGE BASED CAMPAIGNS
SAVINGPROGRAMS ESCALATION
Drivers
PERIODIC EVENT-BASED
SUCCESS PROGRAMS & PLAYS
At Risk
In Harvest
Growing
New
The Engagement Model
Drivers
Results
Risks
ONBOARDING PROGRAMS
ESCALATION/SAVING PLAYS
Drivers
RETENTIONPROGRAMS
PERIODIC EVENT-BASED
SUCCESS PROGRAMS & PLAYS
At Risk
In Harvest
Growing
New
Engagement Model ofYoung CustomerSuccess Organization
Drivers
Results
Risks
ONBOARDING PROGRAMS
ONBOARDING PLAYS
ON-GOING NURTURING
USAGE BASED CAMPAIGNS
SAVINGPROGRAMS
ESCALATION/SAVING PLAYS
PLAYS
Drivers
RETENTIONPROGRAMS
PERIODIC EVENT-BASED
SUCCESS PROGRAMS & PLAYS
At Risk
In Harvest
Growing
New
Churn--------------------
Retention--------------------
Upsell
Save Rate--------------------Active Escalations
METRICS
Time to Value--------------------
Satisfaction
Results--------------------
Adoption--------------------
Utilization
The Portfolio Scorecard
Farm Don’t Hunt and Manage your Grove
Summary
Farm Don’t Hunt and Manage your Grove
Summary
Run Customer Success like a Business
Farm Don’t Hunt and Manage your Grove
Summary
Portfolio Management is the Operating Mode
Run Customer Success like a Business
