how customer success is revolutionizing open source companies

Child-like Joy

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How Customer Success is Revolutionizing Open Source Companies

Child-like Joy


How to Win in Open Source with Customer Success Dhaval Moogimane

Partner, Waterstone Management Group

Objectives

•Why Customer Success is important for open source software companies

•How open source software companies can get started and maximize the value of Customer Success

Challenges for open source companies

Competition with Free & Proprietary

A.Convince “free” users to convert to paid open source support

B.Convert proprietary users to premium open source

C.Justify pricing at each renewal

1 Customer Value in Long Tail

A. Manage customers in the long tail via existing resources

B. Identify opportunities for cross-sell and upsell within existing base

3Heavy Reliance on Subscription

A. Deliver fast time to value

B. Focus on renewals

2

These 3 factors drive challenges in customer retention, conversion, and upsell / cross-sell for open source companies

Why Customer Success is important for open source

1. Competition with free & proprietary

2. Heavy reliance on subscription

3. Customer value primarily in long tail

Open Source Challenges Customer Success OutcomesRelentless focus on Customer

Success and Experience to Drive ARR

Conversion to paid for premium offerings

Cross-sell

Upsell

Retention

• Improved retention rate attributable to CSM

• Qualified leads passed to sales (license, education, success, services, etc.)

• Direct signing on success, services, or education offerings

• Conversion to paid-for premium offerings

• Increased sales efficiency

• Improved sales retention

• Reduced support org costs

• Reduced CAC

Economic impact of Customer Success for open source

Illustrative CSM org profitability

B C DA

How to get started5 actions that open source companies should take when

establishing Customer Success capability

Make Customer Success an organizational priority

Align organization on CS and formalize review of customer health metrics

Charter a Customer Success team

Establish team to monitor customer usage and health, and drive net renewals

Find the right talent Identify CSMs that can engage with users during key point in lifecycle to gauge usage, assess risk, and prompt adoption

Understand your customer Gather product usage insight via available indicators

Exploit the long tail Invest in technology and design CS model with automation in mind

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Child-like Joy


How to Implement Customer Success at anOpen Source Organization

Andy KnospVice President of Services

Gainsight

5 Pillars of Customer Success

Demonstrate the value you deliver to your customers to promote adoption, advocacy,

and growth

DEMONSTRATE Value


Build a consistent, effective customer journey through one-to-many

strategies and high-impact, timely one-on-one interactions

OPERATIONALIZE Customer Lifecycle

Build a customer-focused organization by improving cross-

functional coordination and measuring impact

ENABLE Cross-functional Visibility

Make it easy to spot and act on opportunities for growth and

candidates for advocacy

DRIVE Expansion & Advocacy

Proactively identify signs of customer risk and collaborate cross-functionally to address

issues

MANAGE Customer Risk


Business Challenges

1. We have accounts we can’t touch with manual outreach but need proactive attention

2. We are seeing customer satisfaction issues due to poor hand-offs from sales to CSM

3. We spend too much time preparing for Executive Business Reviews

4. CSMs have too many repetitive interactions with customers

5. It takes customer-facing team members too long to prepare for customer meetings

6. We need to increase the ratio of accounts a CSM can handle to make CSM more cost effective

OPERATIONALIZE Customer Lifecycle

MANAGE Customer Risk

DEMONSTRATEValue

DRIVEExpansion & Advocacy

ENABLECross-Functional

Visibility



Business Challenges

1. We don’t know which accounts are at risk, and which we can impact or de-prioritize

2. We are seeing churn due to low adoption

3. We are seeing churn due to low-value adoption (e.g. not using new or advanced features)

4. We are seeing churn due to functionality gaps in the product

5. We are seeing churn due to product stability or quality issues

6. We are seeing churn due to poor customer satisfaction

7. We are seeing churn due to loss of our key customer champion

8. We are seeing churn due to customer service issues

5 Pillars of Customer SuccessOPERATIONALIZE

Customer LifecycleMANAGE

Customer RiskDEMONSTRATE

ValueDRIVE

Expansion & AdvocacyENABLE

Cross-Functional Visibility


Business Challenges

1. We don’t have a consistent way to track customers’ goals throughout their lifecycle

2. We don’t have a scalable way to show customers how they use our product/service

3. We are seeing churn due to customers not seeing ROI or business value

4. We need to give management visibility into CSM efforts and impact

5. We need a way to report on retention, upsell, and churn

6. We need a way to forecast retention, upsell, and churn




ValueDRIVE




Business Challenges

1. We don’t know which customers to use as references and in marketing activities

2. We have no way to track our sponsors as they go to new companies in a scalable way

3. We don’t know which customers are trending toward needing more capacity

4. It’s too manual for us to spot customer overages

5. We don’t know which customers are good candidates for upsell

6. We don’t know how to turn happy customers into advocates




ValueDRIVE




1. Our field reps and execs are sometimes blindsided by customer risks

2. Our sales reps and account managers are sometimes blindsided by customer risks during a sales cycle

3. We don’t have a consistent view of customer health across our company

4. We don’t know what’s driving risk and success in our customer base

5. We need a way to track customer relationships across complex customers, multiple products

Business Challenges




ValueDRIVE




We don’t have a consistent way to track customers’ goals throughout their lifecycleWe don’t have a scalable way to show customers how they use our product/service

We are seeing churn due to customers not seeing ROI or business value

We need to give management visibility into CSM efforts and impact

We need a way to report on retention, upsell, and churn

We need a way to forecast retention, upsell, and churn

We don’t know which accounts are at risk, and which we can impact or de-prioritize`We are seeing churn due to low adoptionWe are seeing churn due to low-value adoption (e.g. not using new or advanced features)We are seeing churn due to functionality gaps in the productWe are seeing churn due to product stability or quality issues

We are seeing churn due to poor customer satisfaction

We are seeing churn due to loss of our key customer champion

We are seeing churn due to customer service issues

Our field reps and execs are sometimes blindsided by customer risks

Our sales reps and account managers are sometimes blindsided by customer risks during a sales cycle

We don’t have a consistent view of customer health across our company

We don’t know what’s driving risk and success in our customer base

We need a way to track customer relationships across complex customers, multiple products

We have accounts we can’t touch with manual outreach that need proactive attentionWe are seeing customer satisfaction issues due to poor hand-offs from sales to CSM

We spend too much time preparing for Executive Business Reviews

CSMs have too many repetitive interactions with customers

It takes customer-facing team members too long to prepare for customer meetings

We need to increase the ratio of accounts a CSM can handle to make CSM more cost effective

We don’t know which customers to use as references and in marketing activitiesWe have no way to track our sponsors as they go to new companies in a scalable wayWe don’t know which customers are trending toward needing more capacity

It’s too manual for us to spot customer overages

We don’t know which customers are good candidates for upsellWe don’t know how to turn happy customers into advocates

Identifying Key Business ChallengesOPERATIONALIZE


Customer RiskDRIVE

Expansion & Advocacy

ENABLE Cross-Functional

VisibilityDEMONSTRATE

Value

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We don’t have a consistent way to track customers’ goals throughout their lifecycleWe don’t have a scalable way to show customers how they use our product/service

We are seeing churn due to customers not seeing ROI or business value

We need to give management visibility into CSM efforts and impact

We need a way to report on retention, upsell, and churn

We need a way to forecast retention, upsell, and churn

We don’t know which accounts are at risk, and which we can impact or de-prioritize`We are seeing churn due to low adoptionWe are seeing churn due to low-value adoption (e.g. not using new or advanced features)We are seeing churn due to functionality gaps in the productWe are seeing churn due to product stability or quality issues

We are seeing churn due to poor customer satisfaction

We are seeing churn due to loss of our key customer champion

We are seeing churn due to customer service issues

Our field reps and execs are sometimes blindsided by customer risks

Our sales reps and account managers are sometimes blindsided by customer risks during a sales cycle

We don’t have a consistent view of customer health across our company

We don’t know what’s driving risk and success in our customer base

We need a way to track customer relationships across complex customers, multiple products

We have accounts we can’t touch with manual outreach but need proactive attentionWe are seeing customer satisfaction issues due to poor hand-offs from sales to CSM

We spend too much time preparing for Executive Business Reviews

CSMs have too many repetitive interactions with customers

It takes customer-facing team members too long to prepare for customer meetings

We need to increase the ratio of accounts a CSM can handle to make CSM more cost effective

We don’t know which customers to use as references and in marketing activities

We have no way to track our sponsors as they go to new companies in a scalable way

We don’t know which customers are trending toward needing more capacity

It’s too manual for us to spot customer overages

We don’t know how to turn happy customers into advocates

Identifying Key Business ChallengesOPERATIONALIZE


Customer RiskDRIVE

Expansion & Advocacy

ENABLE Cross-functional

VisibilityDEMONSTRATE

Value

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A B C D E


GAINSIGHT APPROACH TO IMPLEMENTATION

High velocity onboarding focused on enabling your team to take full ownership of Gainsight

Structured& Prescriptive Enabling your team Based on learning from

150+ implementations


GAINSIGHT SUCCESS EXPRESS IMPLEMENTATION

Success Express WorkshopSteps 1-6 in 3.5 days

Customers & Sponsor Tracking1

Lifecycle Cockpit2Configuration Only – Usage and Scorecard3

Start CoPilot

Lifecycle Reporting

4

5

NPS Surveys

Customer 360 + Engagement Data

Health Scorecard

6

7

8

Engagement Analytics

Expand CoPilot

Triggered Engagement Rules

9

10

11

5 weeks for steps after Workshop

PRE

WOR

K

Engagement DataIntegrate your other key data points, e.g. Product Usage

~ 14 days

Rol

lout

1

Rol

lout

2

Operationalize Customer Lifecycle Enable Cross-functional Visibility

Demonstrate Value

Drive Expansion and AdvocacyManage Customer Risk


GAINSIGHT COMMUNITY RESOURCES

ArticlesGainsight Go contains numerous constantly-

updated articles that can help answer any questions you have about Gainsight’s

features

VideosYou can also watch many step-by-step videos that

guide you through complex Gainsight features and can help you train your team

Best PracticesGainsight Go is filled with

best practices we’ve developed over the years

so you can make sure you’re getting the most out

of Gainsight

Gainsight Go

Advice from the GroupGet advice and input from

the community on Gainsight as well as

customer success in your org

AnnouncementsStay up-to date with GS

announcements on products, training webinars

and more

IdeasContribute ideas to improve

Gainsight and see what others have contributed

Community

Express Office HoursOnce a week Gainsight will hold ‘open’ office hours for Express Customers to ask

question or seek help

General WebinarsGainsight does frequent

webinars on different success processes as well

as product training available to all customers

Training Webinars

Child-like Joy


How Implements Customer Success Jennifer Dearman

Director of Strategic Customer Engagement

#1

90%MORE THAN

FORTUNE

500of the

use

PRODUCTS & SOLUTIONS. *

REDHAT

* Red Hat client data, 2014

85WORLDWIDE

OFFICES

35COUNTRIES

SOLUTIONSAWARD-WINNING

500S&P

COMPANY

RHTNYSE:

~7,500EMPLOYEES

OPENSOURCELEADER

The world's leading developer and supplier of open source software for enterprise IT

Open Source to the Enterprise

REDHAT JBOSSMIDDLEWARE

REDHATSTORAGE

REDHATENTERPRISE LINUX

REDHAT ENTERPRISE LINUXOPENSTACK PLATFORM

REDHATENTERPRISEVIRTUALIZATION

REDHATSATELLITE

REDHATCLOUDFORMS

1M+projects*

* www.blackducksoftware.com/oss-logistics/choose

REDHAT ENTERPRISE LINUXATOMIC HOSTREDHAT MOBILE

Red Hat Subscription Model

MULTI-LINGUAL

24 HOURS / 7 DAYS A WEEK

UNLIMITED INCIDENTS

MULTI-CHANNEL

MULTI-VENDOR CASE OWNERSHIP

CUSTOMER PORTAL & FORUMS

KNOWLEDGEBASEHARDWARE CERTIFICATION

SOFTWARECERTIFICATION

TRAINING CURRICULA (OPTIONAL)

STABILITY WITH A PRODUCT LIFE CYCLEOF UP TO 10 YEARS

SOFTWARE ASSURANCE

SECURITY RESPONSETEAM

UPDATES

PATCHES

UPGRADES

CLOUD PROVIDERCERTIFICATION

COMMITMENTS

ACCESS LABS

EXPERTISE

ONGOING DELIVERY

TECHNICAL SUPPORT

AWARD-WINNING SUPPORT

YEARS AWARDED:

20112012

20132014

2015

It’s a disciplined approach of having:

The right customer engagement strategy

Eas

e of

acq

uisi

tion

& e

xit

Subscription economy

http://blogs.forrester.com/kate_leggett/14-05-15-what_is_customer_success_management_and_why_is_it_importanthttps://hbr.org/resources/pdfs/tools/SAS_Report_April2014_webview.pdf

Empowering customer success managers with customer, financial, feedback and other data so that they can have the right conversations with their customers”

5500

Customers must realize the

economic value of their investments

“For companies providing products and services via

subscription, actively managing customer relationships to ensure

their satisfaction and ongoing patronage becomes a critical step

in preserving their revenue stream.”

Defining and following standardized engagement processes & experience design

Hiring the right profile and operationally managing the team

Open jobs for

Customer Success Managers

1

2

3

4

“Customer success management is not about technology, or about account management.”

ROI of active relationship management

Churn Retention, Adoption, Growth

Customers Have Choices

http://blogs.forrester.com/kate_leggett/14-05-15-what_is_customer_success_management_and_why_is_it_important

https://hbr.org/resources/pdfs/tools/SAS_Report_April2014_webview.pdf

Our Journey to Customer Success

• Case management

• Break fix support

• Technical Account Managers

• Support Relationship Managers

• Voice of Customer

• Value of subscription

• Customer success tied to business outcomes and value

• Scalable engagement

• Focus on customer journey

• Continuous and prescriptive engagement

REACTIVE PROACTIVE ENGAGEMENT+

Designed to accelerate the path to achieving

targeted business outcomes by maximizing the

value of your Red Hat subscription.

Through continuous engagement and timely

delivery of tailored resources, content, and tools,

Red Hat Customer Success elevates our

partnership to help you achieve your business

goals.

Customer Success

Onboarding your team to help them realize the

most value of your technology investments

CUSTOMER

Supporting product adoption by

providing timely & relevant resources and tools

Serving as a named resource and advocate

within Red Hat

Driving desired business outcomes through

continuous engagement

Customer Success Goals

Proactively engage 100% of customers with continuous

and relevant content

Increase product adoption and deliver

greater business value

Predict and protect subscription renewals and drive growth and advocacy

Success planning

Quarterly business reviews

Customer Dashboard

DECISION MAKER

Product Roadmap Session(s)

Health monitoring & monthly Touchpoints

Targeted Nurture Campaigns for adoption

KEY INFLUENCER END USER

Product Getting Started (Portal)

Targeted Nurture Campaigns around product/feature adoption & best practices (labs, portal content, security, etc)

Understanding CustomersDEMONSTRATING VALUE DELIVERING VALUE

Aligning IT initiatives with business goals

Doing more with less

Ensuring solutions operate to compliance standards and are interoperable

Key

C

halle

nges

Enga

gem

ent

Tact

ics

Implementing practical solutions that solve seriousbusiness problems

Improving efficiency, flexibility, and scalability

Avoiding redundancies

Rapidly deploying new technologies with existingexperience

Completing tasks not enabled by the current UI

Spending less time automating tasks and more timepreventing disruption

Facing a recurring problem that could be fixed with analternative, unapproved solution

Customer Success Approach

RHT CSM

RHT Digital

Premium+

Premium

StandardMarketing Managers

CUSTOMER BASE ENGAGEMENT

1:Many CSM to account ratio

1:Few CSM to account ratio

AUTO

MAT

ED

PER

SON

ALIZ

ED

EXPE

RIE

NC

E

RHT Digital

RHTSales

Enga

gem

ent D

esig

n &

Cam

paig

n M

arke

ting

RHT TAM

RHTSales

RHT CSM RHT Digital

Transform customer

success processes

Predict and track

customer health

Touch customers at scale

Why Gainsight?

New Resources Customer Success Roles Playbooks & Scalable Engagement Customer Lifecycle

Management tool

HIGH TOUCH

STANDARD TOUCH

TECH TOUCH

Customer Summary

Summary of customer health across critical metrics with the ability to view over time to see exactly why overall scores changed

Snapshot of Customer Portfolio Health

View customer portfolios to look for trends in health attributes

Executive Reporting

Executive dashboards to track productivity of customer success managers by engagement models

Child-like Joy

Jennifer DearmanDirector of Strategic Customer [email protected]

Dhaval MoogimanePartnerWaterstone Management [email protected]

Andrew KnospVice President of [email protected]

Questions?