unlock the value of usage data
TRANSCRIPT
Dan McGaw, Dir. of Marketing, KISSmetrics Puja Ramani, Dir. of Prod Mgmt & Analytics, Gainsight
Unlocking the Value of Usage Data March 20, 2014
Dan McGaw Director of Marketing
KISSmetrics
@danielmcgaw
Puja Ramani Director of Product
Management & Analytics Gainsight
@pramani
#customersuccess #KISSwebinar
Your presenters
Join us on Twi!er
@danielmcgaw #KISSwebinar @pramani #customersuccess
1 The Case for User Analytics
2 Making User Analytics Actionable
3 Realizing ROI
What We’ll Cover
#customersuccess #KISSwebinar
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The Case of User Analytics
1
We Have Entered The Age Of The Customer
User analytics enables businesses to effectively reach the right customer with the right message at the right time
1900 - 1960 1960 - 1990
Information
1990 - 2010
Manufacturing Plants
Distribution Channels
Customer Intelligence
2010 - ?
Age of manufacturing Mass manufacturing
makes industrial powerhouses successful.
!Boeing, Ford, P&G, Sony
Age of distribution Global connections and transportation systems make distribution key.
!Toyota, Walmart, UPS
Age of information Connected PCs and
supply chains mean those who control information
flow dominate. !
Amazon, Google, Intuit
Age of the customer Empowered buyers
demand a new level of customer obsession.
!Facebook, Apple, Zappos
Source: Forrester Research, The Noun Project
Problem
Customer data is everywhere
• Growth of mobile and social platforms is fueling the increase in customer data.
• New marketing channels create more customer touch points.
• Fragmentation of customer data is increasing because of SaaS.
• Big data has created demand for increased actionability.
• Managing the customer lifecycle is more important than ever.
“The ability to take data -- to be able to understand it, to process it, to extract value from it, to visualize it, to communicate it -- that's going to be a hugely important skill in the next decades.” — Hal Varian, Chief Economist at Google
Welcome to our world of Customer Analytics
Every person. Every bu!on click. Every purchase. Every device. From transaction #1 to #543.
All tracked so the modern marketer knows exactly what's working, and what’s not.
How it works (it’s simple and powerful)
1 2 3
Copy & paste KISSmetrics' tracking code to track website
visitors.
Combine this activity data with other data sources such as billing systems,
internal databases, offline data, email lists, mobile
apps, and more.
KISSmetrics connects the dots and creates 360º
profiles for every person who has ever touched
your business.
Your customer is at the heart of KISSmetrics
How effective is my signup process?
“I love how KISSmetrics is able to tie visitor activity to customer behaviors so it's easy to know which referral sources to focus on to acquire the type of customers I want.”!!— Ruben (Bidsketch)
“You can’t maximize your revenue and profit unless you are tracking the lifetime value of each of your customers. And that’s what KISSmetrics does be!er than anyone else.”!!— Thomas (Zappos)
Which of my marketing channels has the highest ROI?
What do my customers do before they sign up?
“KISSmetrics gives unprecedented insight into the only thing that ma!ers: people.” !!— Nik (Librato)
Are customers coming back on a regular basis?
“If you charge money online, you should be using KISSmetrics to understand what's working, what's not, and how to improve.”!!— David (NextBigSound)
LOG IN WITH GOOGLE
Start Your Free KISSmetrics Trial
Making User Analytics Actionable
2
We all know a data driven world is inevitability
We track everything from our health to our homes to our children
We have more data about our customers than ever before
So what’s stopping us?
38% of companies are not able to communicate and interpret customer analytics results
Forrester Research. The State Of Customer Analytics 2012
Data is being generated everywhere about your customer but we still don’t have the
technology to get all the data together.
54% can’t integrate and manage all their data sources
Forrester Research. The State Of Customer Analytics 2012
The deluge of data creates noise that mask the signals that predict customer churn or relationship growth opportunities that you can take action on.
We need to get the data in the hands of the people in your organization that can really act on it.
The four pillar approach is your roadmap to ROI
Making User Analytics Actionable
People Objective Strategy Technology
So what can you do?
Making User Analytics Actionable
Making User Analytics Actionable
People
● To increase the ROI of your usage and other data, identify a department or group that can do
their jobs be!er with the use of customer data
● In organizations just ge!ing a handle on their customer data, this is usually a post-sales
“Customer Success” or “Account Management” group.
● More mature organizations’ marketing and product management groups also use customer data
to drive advocacy and referral-based growth as well as stickier product development.
● The most mature companies have customer success stakeholders across the enterprise at every
level, from executive to front-line employees.
Making User Analytics Actionable
Objectives
● A$er identifying the relevant groups, work with
them to identify important customer outcomes to
drive. Ensuring that customers get value out of the
product will in turn drive ROI for your business.
● Common metrics our customer use include renewal
rate, growth and up-sell, advocacy and cross-sell,
and discount. Production adoption.
Making User Analytics Actionable
Strategy
● How will you affect your objectives using new data?
● Will you segment customers more granularly or allocate
resources differently (with email automation or self-
service models)?
● Can you get ahead of issues or become more proactive
about renewals and growth?
● What data should you focus on? Can you predict your
customers’ behavior?
○ Learn from your happy customers - what makes them
successful
With people and metrics in place, it’s time to set your customer data strategy.
Making User Analytics Actionable
Technology
Data Sources
Health Scorecards
Predictive Alerts
Analytical Insights
Customer Analytics Success Actions
CRM Marketing Automation Support
Usage KISSmetrics Analytics
Survey Billing
Connectors
APIsC360
Predictive Playbooks
Success Analytics
Data Science
Alert Rules and Playbooks
Confirm Intuition
Intuition
Best Practice
New Insights
Counter Intuition
Find your most effective predictors and actions
Realizing ROIMaking User Analytics Actionable
Realizing ROI
3
Realizing ROI
Blend with other data sources to discover insights
● When usage data is blended with CRM, billing, support and other customer data sources, you’ll
start to see pa!erns across different customer segments.
● You will be able to prioritize touches more efficiently
○ Do customers that use certain, sticky features convert to higher packages more readily?
● You’ll also be able to perform be!er root cause and effect analysis
○ Did releasing an upgrade at on this day and time affect most of your customer base?
○ Add milestones - your actions’ impact on customers
Realizing ROI
Score customer health using usage data
● Monitor your customers’ sentiment towards your product and company on quantitative (usage,
references given) or qualitative (executive relationship) measures.
* This can be automated or updated by a customer success stakeholder.
Realizing ROI
Have one view of all your customers
● Create dashboards and reports that refresh as underlying data changes. Always up-to-date
● Always have a snapshot view of ALL your customers.
● Identify problem or opportunity areas, and drill into the underlying data to figure why and intervene.
○ Example: Low contract value customers without training packages are churning more - consider
discounting or offering a community to grow these relationships.
Fire off tasks or outreach based on usage
Realizing ROIRealizing ROI
● With all this data at your fingertips, you’ll begin to see common occurrences and pa!erns.
● You don’t have to manually take action on each one via custom email or a call
● Rules can capture events and fire off automated emails, tasks, or escalations to other
relevant stakeholders
Take action on early warnings and manage each event
Realizing ROIRealizing ROI
● Individual customer success stakeholders can manage their workflow through a back-to-
health or up-sell process.
● Remember to always keep data up to date
Consistently collaborate to keep customer relationships healthy
Realizing ROIRealizing ROI
● Apply best practice/data science playbooks guaranteed to work
● Apply automated or collaborative playbooks that you know work for common scenarios.
● This not only helps onboard new employees but also ensures all customers experience consistent service.
Who’s getting ROI from usage data?
Realizing ROIRealizing ROI
● Marketo identifies customer relationship growth opportunities based on usage of their
marketing platform and automates emails to those targets to nurture and educate them on how
they could get value from other solutions in Marketo’s marketing platform.
● Gild, a fast growing talent management solution, has very strategic enterprise clients. Before
each interaction with a customer, Gild will pull up the 360 degree view and in 5 minutes be
updated on everything about that customer - their support tickets filed, recent usage pa!erns,
and even if an invoice has not been paid.
Reduce Churn “Headwind”
Increase Up-Sell “Tailwind”
Scale Team Efficiently
5 % points 3 % points 52 %
*Source: Measuring the ROI of Customer Success Management Solutions - Mainstay Company
What?
By?*
How Customer Solutions Help
Realizing ROIRealizing ROI
● In an independent research study, Gainsight customers have seen churn rates fall and
renewal rates increase by 5%
● Growth and up-sell have added another 3% to the top line while preparation and effort costs
have been cut in half.
WhatReduce Churn “Headwind”
Increase Up-Sell “Tailwind
Scale Team Efficiently
By?* 5% points 3% points 52%
THANK YOU
Dan McGaw Director of Marketing
KISSmetrics
@danielmcgaw
Puja Ramani Director of Product
Management & Analytics Gainsight
@pramani