How Customer Success-centricity Drives Revenue, Growth, and Valuations - RD Summit 2016

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On November 3, 2016, in Florianópolis, Brazil, at RD Summit 2016, Lincoln Murphy presented on Customer Success-driven Growth to an enthusiastic crowd eager to learn how to make their customers - and in turn - their companies, successful.

Whether you have a subscription business or you sell one-off products or services and simply want to do business with your customer more than once, Customer Success should be your driving purpose.

The Customer Success approach is invading the boardroom and impacting the way CEOs think about their business. Today, Customer Success is the hottest B2B movement since the advent of the subscription business model.

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How Customer Success-centricity Drives Revenue, Growth, and Valuations - RD Summit 2016

  1. 1. How Customer Success-centricity Drives Revenue, Growth, and Valuations Hello, my name is Lincoln Murphy I’m excited to be presenting at @LincolnMurphy
  2. 2. Stay longer Buy More Expand Internally Advocate Externally @lincolnmurphy
  3. 3. Make your CUSTOMERS
 powerful!
  4. 4. They’ll make YOU powerful!
  5. 5. HOW will they make you powerful?
  6. 6. Stay longer Buy More Expand Internally Advocate Externally @lincolnmurphy
  7. 7. This Directly Impacts Company VALUATION
  8. 8. Revenue x Multiplier = Value Company Valuation Calculation
  9. 9. Revenue x Multiplier = Value o There’s more! Company Valuation Calculation
  10. 10. Revenue x Multiplier = Value o  Customer Lifetime Value (LTV) o  Customer Acquisition Cost (CAC) o  Net Revenue Retention (NRR) o  Total Addressable Market o  Talent Acquisition o There’s more! @lincolnmurphy Company Valuation Calculation
  11. 11. How do you make your customers POWERFUL?
  12. 12. By making them SUCCESSFUL
  13. 13. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  14. 14. Customer Success is NOT… •  Just a Department •  Customer Support •  Account Management •  Happiness or Delight •  Churn Mitigation •  Saving Customers •  “Checking in" with customers •  Customer hand holding @lincolnmurphy
  15. 15. Customer Success is a GROWTH ENGINE
  16. 16. Customer SUCCESS- driven Growth
  17. 17. As customers SUCCEED and EVOLVE…
  18. 18. …their relationship with us should EVOLVE and GROW
  19. 19. Year 1 100% Customer Lifetime Value @lincolnmurphy
  20. 20. Year 1 Year 2 Year 3 Year 4 Year 5 80% 20% Customer Lifetime Value @lincolnmurphy
  21. 21. Year 1 Year 2 Year 3 Year 4 Year 5 > 95% < 5% Customer Lifetime Value @lincolnmurphy
  22. 22. Customer Lifetime Value Year 1 Year 2 Year 3 Year 4 Year 5 > 98% < 2% Year 6 @lincolnmurphy
  23. 23. Resource Allocation Year 1 Year 2 Year 3 Year 4 Year 5 < 2% > 98% Year 6 @lincolnmurphy
  24. 24. RENEWAL & EXPANSION are part of the Customer’s SUCCESS
  25. 25. Customer Success Management is the process of moving the customer toward their ever-evolving Desired Outcome. “ ” -  Lincoln Murphy @lincolnmurphy
  26. 26. Customer Success Management is... •  Segmentation •  Orchestration •  Intervention •  Instrumentation •  Operationalization •  Enrichment
  27. 27. Customer Success Management @lincolnmurphy
  28. 28. Grow BECAUSE of your effort, not 
 IN SPITE of it
  29. 29. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  30. 30. Interactions Start EARLY
  31. 31. “The seeds ! of churn are ! planted early” ! – Lincoln Murphy! @lincolnmurphy!
  32. 32. Avoid BAD FIT Customers
  33. 33. Who Feels the ACUTE Pain of Bad-fit Customers? •  Sales •  Implementation •  Product •  Marketing •  Support •  Account Management •  Customer Success Management •  Your Customer! @lincolnmurphy
  34. 34. Acquire customers with
 SUCCESS POTENTIAL
  35. 35. Technical Fit Functional Fit Competence Fit Experience Fit Cultural Fit @lincolnmurphy
  36. 36. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  37. 37. Required Outcome Appropriate Experience Desired Outcome WHAT your customer needs to achieve HOW they need to achieve it@lincolnmurphy
  38. 38. Customer Characteris9cs Method Customer (segment) Desired Outcome @lincolnmurphy Required Outcome Appropriate Experience
  39. 39. Air Travel Desired Outcome – Air Travel @lincolnmurphy Point A è B Safely & Quickly
  40. 40. Need to work, no 9me to eat Air Travel Desired Outcome – Air Travel @lincolnmurphy Point A è B Safely & Quickly Assigned sea9ng, WiFi, Food service, leg room Business Traveler
  41. 41. Save money, enjoy des9na9on Air Travel Desired Outcome – Air Travel @lincolnmurphy Point A è B Safely & Quickly Cheap fares, snacks & drinks Family Going on Vaca9on
  42. 42. Inbound Marke9ng Desired Outcome – Inbound Marketing @lincolnmurphy More Quality Leads
  43. 43. DIY, no $$$, tech-first @lincolnmurphy More Quality Leads API, self-service, Slack support channel Early- stage Startup Desired Outcome – Inbound Marketing Inbound Marke9ng
  44. 44. Must work, has $$$, less- tech @lincolnmurphy More Quality Leads GUI, 24/7 Support, 3/yr contract F500 Dept Desired Outcome – Inbound Marketing Inbound Marke9ng
  45. 45. COVERAGE LEVELS and RESOURCES are determined by DESIRED OUTCOME
  46. 46. DESIRED OUTCOME is the key to SCALING Customer Success
  47. 47. @lincolnmurphy
  48. 48. Churn is the SYMPTOM of an Underlying Disease
  49. 49. Brasil-specific Learnings •  Lack of Trust between Customers and Vendors •  Relationships matter a lot •  Failure to Logically Segment Customers hurts Scalability •  Lack of deep CSM talent pool •  Lack of Purpose-built CSM for Brazilian Market •  Unique Financial Instruments (Boleto) @lincolnmurphy
  50. 50. Bring Learnings FROM Brasil to the WORLD
  51. 51. Customer. SUCCESS.
  52. 52. When your CUSTOMERS Succeed...
  53. 53. YOU Succeed!
  54. 54. Thank You!
 @lincolnmurphy lincoln@lincolnmurphy.com
  55. 55. Awesome! Thanks for your attention. Learn more about me at http://sixteenventures.com And contact me via lincoln@lincolnmurphy.com @LincolnMurphy How Customer Success-centricity Drives Revenue, Growth, and Valuations

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