a practical guide to customer success

`

A Practical Guide to Customer SuccessFebruary 2017

linkedin.com/in/jamescappelli

Jamie CappelliVP|Client Success|360insights

Channel

Success

Platform

Headquarters Whitby, OntarioEmployees 250+Offices Canada, USA, UK, HaitiRecent Awards Deloitte Fast 50

Channel Success Platform™

A Practical Guide to Customer Success

Why?

360insights ― Private & Confidential

Market has Spoken - 800% increase since 2009360insights ― Private & Confidential

Google TrendsSearch History for “Customer Success”

Economics


Anatomy of a Software Deal – License/S&M

$

Y1 Y2 Y3 Y4

Services $80k

Licenses $100k

Sales Friction $200kTotal Spend (4Y)

$260k

S&M $20k/yr

Loyalty as a Bad Marriage

Anatomy of a Software Deal – SAAS

$

Y1 Y2 Y3 Y4

Sales Friction $60kTotal Spend (4yr)

$240k Subscription

$60k/yr

Y5

SAAS Total Spend $300kLicense/S&M Total Spend $280k

Over 5 yrs …

Investors – Value of Revenue Not Equal

Services $12MLicense $12MRecurring $12M

x 1 = $12Mx 1 = $12Mx ~6 = $72M

$96M

Investors – Return on Investment

Services License Recurring

$24M x 1 = $24M

$1B$165M x 6 = $996M

$24M x 1 = $24M

SaaS companies rent software to increase

valuation.

Customers rent the software.

You rent your customers.

Dr. Doom & the Salesforce Death Spiral

Churn 8%

…per Month

Loyalty vs. New Logos

$1.00

$1.15

$0.12

CRCRetention

Cost

ACVContract

Value

CACAcquisition

Cost

Every customer exits after 1 yr

Churn 8% /mth

Only make money in yr 2

New Logo Revenue Loyalty

Customer Success is a

practical philosophy

Investor and Executive focus on Loyalty means Customer

Success is born.

Loyalty is easy when value is obvious.

What does a CSM do?


Who is a Customer Success Manager?

What is a Customer Success Manager’s job?

Make Sure Customers

StayCustomers


What is a Customer Success Manager’s job?

Make sure that they hear about it

Loyalty through ValueMake sure that they keep getting the value

Understand what the Customer values

Make sure that they get the value


CSM - Avoid the Awkward Hug

Delight Doesn’t Pay

Meets Customer

Expectations

Exceeds Customer

Expectations

Below Customer

Expectations

Less Loyal

More Loyal

Perception

Reality

Should we try to exceed expectations?360insights ― Private & Confidential

INVESTMENT A

MINOR IMPACT

INVESTMENT B

MAJOR IMPACT

DeliverWhatWas

Promised

Marketing identifies valueProduct builds value Sales sells the value

Onboarding delivers valueSupport maintains value

A Customer Success Manager quarterbacks a customer’s needs to deliver target value


CSM is the Value Quarterback

CSM

Delivery

Support

Sales

Analytics

R&D

Product

Finance

Marketing

Velocity


Go-Lives don’t matter

Time to Value matters

of all 2015 US and CAN internet traffic

37%


Velocity

Value Value


VALUE• Unique content• Tailored Experience –

BINGE• Know your customers:

• My List• Suggestions for You

Value Velocity360insights ― Private & Confidential

New Logo Value

Speed

• Shrink time to value

• Velocity leads to trust

• Speed is an internal cost

Speed vs. Velocity

Velocity

What is the Customer Success outcome?

Growth through Trust


Delivering ROI on time establishes trust

Establish a trusted advisor to encourage growth

Trusted advisor can increase adoption and upsell

Trusted advisor best lead generator for cross sell

Health


Value should be measurable

Are we winning?

Customer HealthSuccess Criteria:• Objective• Why are they

giving us money?• Are they getting

their money’s worth?

Happy Path:• Identify how your

solution delivers value

• Measure access to what is valued


Performance:• Is the Happy Path

available?• What is limiting

access?• Help needed or

recommendations

KPI Caution

Customer HealthCustomer Log-In:• Just because I

logged in, it doesn’t mean I saw value

• Focus on what I did once I logged in

Support Tickets:• Volume of tickets

means in pain or very engaged

• Mine the support data for more valuable insight


NPS:• Investors love it• Difficult to trend

at a Customer Level

• Use to validate CSM status

A good QBR makes the case for renewal

A good CSM can deliver a QBR at any time

What is makes a good QBR?

Data should be:• Relevant• Relative• Interpreted

Status of Target ValueMake your Customer contact look good to their boss

Simple Executive Summary

Address all Stakeholders


Nest Health Score


Thank You


linkedin.com/in/jamescappelli

Make sure that they hear about it

Loyalty through ValueMake sure that they keep getting the value

Understand what the Customer values

Make sure that they get the value