how to use customer success to prep for and drive contract renewals

How to Prep for and Drive Renewals

David Samuels, Concur Sean Cox, Marketo

Robert Asscherick InsideView

Concur

Vice President, Client Development

David Samuels• CNQR - 2013 - $545 Million• 20,000+ customers in 100+ countries• 4,000+ global employees• 25 Million registered users• Send over $12 Billion to banks per year• 750,000 logins daily

Customer Success Vision• Anticipating, identifying, and meeting

our customer needs is key to Concur’s continued success.

• Client Development exists as a focal point for the customer to achieve success with Concur.

• We will measure our impact through revenue growth, customer retention, and relationship health.

Driving Renewals• Renewals are driven by our Client Development

Organization• Client Executives manager entire client lifecycle• Traditionally, very high customer retention• Renewal are a source of new Cross-sell & Up-sell revenue• Saas Model requires uniqure approach to prepare for

renewal

Concur Customer Success Index

Product Set Engagement Client Satisfaction

ContractualPerformance

Feature Adoption

Data preparation for the renewals process

Concur Customer Success Index

Product Set Engagement Client Satisfaction

ContractualPerformance

Feature Adoption

InsideView

Director, Customer Success –

Key Account Group

Robert Asscherick

A pioneer in CRM Intelligence, InsideView provides a suite of software solutions for sales and marketing leaders that delivers critical intelligence directly into CRM. Our CRM Intelligence platform provides the industry’s most accurate market data, valuable business insights, and strongest professional connections so that marketing professionals can deliver more leads, sales executives can close more deals, and customer success managers can retain and grow accounts.

The InsideView CRM Intelligence Platform is integrated with Marketo, Microsoft Dynamics CRM, Oracle, Salesforce.com, SAP, and SugarCRM. Only InsideView improves performance at every stage of the marketing and sales process and is proven to increase leads, revenue and lifetime customer value.

Roles & Responsibilities:  CSM vs Renewal Team

Success Starts at the Ears

Listen Up!

• It is fundamental to your success to understand your customer’s strategic initiatives.

• How are your products/services aligned to drive success in those initiatives?

• What itch are they really trying to scratch?

• Where/How else can you add value in the organization?

• Usage must support achieving these goals.

Your Customer’s Success Drives Renewals• CSM’s are your best weapon for

retaining and growing revenue

• Renewal and growth conversations should be a natural extension of your efforts to help your customers achieve their strategic goals

• Understanding your customers interdepartmental/divisional dependencies exposes organic whitespace conversations

• Renewal discussions should NOT be transactional - start early, discuss your customer’s growth expectations, long-term initiatives, next year’s plans, etc.

• Always be asking who, how, why, when can we be helping you more

• Knowing the external factors is mission critical – Leadership Changes, M&A, Funding, Product Releases, Expansion – The more you know, the better your team will protect and grow your revenue!

Marketo

Director of Account Management

Sean Cox

• 4 years at Marketo• Team of 20 Account Managers

• Responsible for retention & up-sell• Divided by customer size & segment• Portfolio of named accounts

Fun Facts about MarketoLeader in cloud-based marketing software>3,000 customers in 36 countries

>190 ecosystem partners

>40,000 Marketing Nation community members

>500 employees in U.S., Europe, Australia, Israel

(MKTO)

5. MEASURE& OPTIMIZEMaximize impact ofmarketing investments

1. PLAN & BUDGETPlan marketing investments and track expenses

2. GENERATE DEMANDAttract more potential customers

3. BUILDRELATIONSHIPS Establish deep and lasting 1:1 customer relationships

Modern Marketers Need a Complete Solution

4. DRIVE SALESDrive effective conversion from new prospect to sale

Marketo 2014 Goals• Focus on Dollar Retention Target as the core measure of

performance• Manage Upsell to existing bookings plan• Improve dollar retention• Fully transition from Renewal Management to Pro-active

Account Management

Renewal Metrics & KPIs

KPIs: Retention and URE$120K

Closed

$20K

$40K

$60K

$80K

$100K

$140K

Renewal Opportunity

Excl MYR

RetainedAPORPartial LossFull Loss

Retention Rate

Churn

Usage Right Expansion

AdditionalDiscount Reduction of

SKULoss of SKU

$100K

$0K

DiscountRecapture Increase of

Existing SKUTechnicalAdd On

$200K

$0K

Partial Loss Analysis

Usage Rights Expansion

$100K

Open

KPIs: Retention and URE

$120K

$20K

$40K

$60K

$80K

$100K

$140K

$160K

BeginningCustomer ARR*

RetainedARRPartial LossFull Loss

Net Annual Recurring Revenue Rate

Ending CustomerARR”Cross Sell

Churn

Expansion Revenue

Operational Descriptions

Batch Monthly Resolution Pacing

20%

50%

95%100%

0POR Month End

+30-30-60-90

Objective: Manage pacing of contract resolution against planned rates to ensure minimal in month compression of contracts, reducing risk of contractual exposure and reduced sales cycle

Plan – Batch Month End PacingActual M-1 Batch: 100% “Finance” ClosedActual M0 – Current Month BatchActual M+1 BatchActual M+2 Batch

Planned Retention/URE Closed Won By Batch

M-1 M0 M+1 M+2

Plan – Closed Won RetentionActual – Closed Won RetentionPlan – Closed Won Renew UREActual – Closed Won Renew UREPlan – Closed Non Renewal UREActual – Closed Non Renewal URE

Objective: Determine closed won contract dollars against monthly batch resolution and retention rates and associated URE with renewals

Clos

ed W

on

Q&A