product usage: your silent revenue killer

Product Usage: Your Silent Revenue Killer

Today’s Host: Scott Schell@Schell_ShockedSenior Manager, Global Customer Success Cisco Systems, Inc.

2© 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

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Customer Success Methodology#successtalk

People

Automation

Process Analytics


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http://impact-info.cisco.com/l/64992/2016-05-12/8m9zbm

Product Usage: Your Silent Revenue Killer

Guest Presenter: Kyle Watts

Senior Manager GCS Virtual Customer Success CenterCisco Systems, Inc.


Rockefeller Corporation as cited in 18 Customer Facts Marketers Can’t Ignore, Brand Strategy Insider

“68% of customers leave because they think you don’t care about them”

http://www.brandingstrategyinsider.com/2013/02/18-customer-facts-marketers-cant-ignore.html


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Delivering customer outcomes

Grow Revenue

Optimize Expenses

Improve Cash Flow

Maximize Asset Use Manage Risk

!$


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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

Decrease customer churn

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


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Position your company for success

Prioritize & Segment Customers

Identify & Measure Key Indicators

Develop & Execute an Action Plan


Why prioritize & segment?Customer Engagement Constraints

Different Customer Needs

Variable Cost to Serve

Variable Levels of Effort

Expected ROI

Strategic AccountsFor Free vs. for Fee

Capacity Constraints Opportunity Cost


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Audience Poll

Do you feel that there is an established process in place to determine your approach to customer engagement that feeds future revenue opportunities?

Yes No


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What is the difference?

Prioritization

Maximizing your available resources against known capacity constraints

Driving alignment with your most valuable customers

Segmentation

Assignment of the right resources to the right customers to maximize impact/results

Allows for a scalable operation through effective prioritization


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General prioritization selection criteria

Mature Adopters with Low Opportunity

Lower Cost to Serve

Mature Adopters with High Opportunity

Optimal Cost to Serve

Low Adopters with Low Opportunity

Lowest Cost to Serve

Low Adopters with High Opportunity

Higher Cost to Serve

Adoption Currency

Exp

ansi

on C

urre

ncy

Customer Lifecycle Journey

Sta

irway

to V

alue

Adoption Currency Frequency Volume # Features # Active Users # Registered Users

Expansion Currency Annualized Services

Spend Services Coverage

Opportunity Product Refresh

Opportunity Services Coverage

Ratio


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Mature Adopters with Low Opportunity

Mature Adopters with High Opportunity

Low Adopters with Low Opportunity

Low Adopters with High Opportunity

Smart Net Total Care prioritization

Active Usage > 90d U2C Oppty > $$$ LDOS Oppty > $$$ Coverage Rate <

90%

Time to Value – 6 to 9mos

LoE = High

Health Score : 1 – 5

Active Usage < 90d U2C Oppty > $$$ LDOS Oppty > $$$ Coverage Rate <

90%


LoE = Moderate

Health Score: 5 – 10

Active Usage > 90d U2C Oppty > $ LDOS Oppty > $ Coverage Rate <

90%

Time to Value - > 9mos

LoE = Very Low


Active Usage < 90d U2C Oppty > $ LDOS Oppty > $ Coverage Rate <

90%


LoE = Low


Adoption Currency

Exp

ansi

on C

urre

ncy

Adoption Currency

Exp

ansi

on C

urre

ncy


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Differentiating routes to engagement

Low/Tech Touch Automated Journey [Ratio] 100:1 – 250:1 and 1:Many

Digital-Based

AutomatedAssets

Med TouchVirtual Customer Success Manager [Ratio] 50:1 – 100:1

Activity-Based

Fixed Assets

High TouchCustomer Success Manager [Ratio] 10:1 – 25:1

Relationship-Based Custom Assets


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Getting started

Identify data sources for

adoption and expansion

Develop an engagement

strategy

Leverage data to prioritize

customers


How will your data lead to success?


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Accelerate value realization through adoption

Quickly deliver on business/operational outcomes Grow revenue Reduce expenses Manage risk

Create profitable customer relationships Reduce churn/Increase retention Improve product usage Increase time-to-value Reduce cost to serve Increase revenue/wallet share Create a competitive advantage through customer

experience

Help customers use what they bought and help them incorporate key features into their internal processes to achieve their desired

outcome.

Simply… Success…


VALUE engagement practice


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Why should you care?

0 +3mos

0

10

7.0

+6mos

9.0

critical90 days

Value Realization Threshold “Auto-Renewal” probability > 90% Expansion Opportunity Realized

Positive trends in health scores correlate to higher renewal rates and account growth.


How do you make your data useful?


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Audience Poll

21

Does your company currently track how your solution is delivering customer business outcomes?


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Customer adoption indicators

Feature UtilizationActive Users

MACD Process

RMA Success RateReduced MTTFR

Reduced Case Load

Grow revenueReduce expenses

Manage risk

Leading Lagging Outcomes


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Low scores indicate adoption challenges and require immediate intervention to remediate issues or remove obstacles.

High scores indicate healthy adoption and the potential for references, case studies or expand opportunities.

Understanding health scores


How do you make your data actionable?


Get Well Stay Well

Overcoming inhibitors to the customer’s success

Promoting new usage and feature consumption


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Get well plan

…how these inhibitors are affecting the customer’s business.

…ways in which you can assist the customer in overcoming obstacles.

…a plan to eliminate challenges and provide the customer with best result.

…progress and adjust the plan to any changing needs or barriers.

…adoption barriers and business challenges that may be affecting optimal product use and value realization.

Identify

Measure

Assess

Develop

Document


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Stay well plan

…the probability of customer conversion to enhanced solutions.

…if the customer is aware of the business goals achieved and enhanced value that can be realized.

…a plan to improve or build on the customer’s success.

…milestones and encourage progress on any new functionality implemented.

…opportunities in adoption or expansion currency.Identify

Measure

Assess

Develop

Document


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Getting started

Identify data sources

Map relevant customer data

points

Create customer health scores

Determine an action plan


@Schell_Shocked

@CiscoImpact

Let us know what you think!

[email protected]

[email protected]


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Closing your first sale is just the beginning to reaching the true value of your customers. Find out more about capturing hidden opportunities that boost your revenue potential in this four-part, short video series.

Expand Selling Tips to Increase Your Wallet ShareVideo on Demand

http://impact-info.cisco.com/l/64992/2016-05-12/8m9zbm

Thank you.

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product usage: your silent revenue killer

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