How Customer Success-centricity Drives Revenue, Growth, and Valuations

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On September 28, 2016, Lincoln Murphy presented to a group of over 100 CEOs, hosted by ACETECH in Vancouver, British Columbia, Canada.

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

  1. 1. How Customer Success-centricity Drives Revenue, Growth, and Valuations Hello, my name is Lincoln Murphy I’m excited to be presenting to @LincolnMurphy
  2. 2. Stay longer Buy More Expand Internally Advocate Externally @lincolnmurphy
  3. 3. “POWER
 is the capacity to alter the state of others”
  4. 4. You EXIST to alter the state of your customers
  5. 5. You can’t TAKE
 power
  6. 6. Power is GIVEN
  7. 7. Initial Power Transfer Requires INITIAL TRUST
  8. 8. Ongoing Power Transfer Requires ONGOING TRUST
  9. 9. Newton’s 3rd Law
  10. 10. “What go around come around, kid.” – Cypress Hill
  11. 11. Make your CUSTOMERS
 powerful!
  12. 12. They’ll make YOU powerful!
  13. 13. HOW will they make you powerful?
  14. 14. Stay longer Buy More Expand Internally Advocate Externally @lincolnmurphy
  15. 15. Customers Making You Powerful Impacts Company VALUATION
  16. 16. Revenue x Multiplier = Value Company Valuation Calculation
  17. 17. Revenue x Multiplier = Value o There’s more! Company Valuation Calculation
  18. 18. 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
  19. 19. How do you make your customers POWERFUL?
  20. 20. By making them SUCCESSFUL
  21. 21. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  22. 22. 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
  23. 23. Customer Success is a GROWTH ENGINE
  24. 24. The DNA
 Dilemma
  25. 25. Customer Success CULTURE
  26. 26. Maintaining culture is one of the BIGGEST CHALLENGES as companies grow
  27. 27. Customer Success must be a part of the DNA
  28. 28. Customer SUCCESS- driven Growth
  29. 29. As customers SUCCEED and EVOLVE…
  30. 30. …their relationship with us should EVOLVE and GROW
  31. 31. Year 1 Year 2 Year 3 Year 4 Year 5 80% 20% Customer Lifetime Value @lincolnmurphy
  32. 32. Year 1 Year 2 Year 3 Year 4 Year 5 > 95% < 5% Customer Lifetime Value @lincolnmurphy
  33. 33. Customer Lifetime Value Year 1 Year 2 Year 3 Year 4 Year 5 > 98% < 2% Year 6 @lincolnmurphy
  34. 34. Resource Allocation Year 1 Year 2 Year 3 Year 4 Year 5 > 98% < 2% Year 6 @lincolnmurphy
  35. 35. EXPANSION is part of the Customer’s SUCCESS
  36. 36. Customer Success Management is the Orchestration, Operationalization, Instrumentation, and Intervention designed to ensure customers achieve their ever-evolving Desired Outcome. “ ” -  Lincoln Murphy @lincolnmurphy
  37. 37. Customer Success Management @lincolnmurphy
  38. 38. Enrichment
  39. 39. Grow BECAUSE of your effort, not 
 IN SPITE of it
  40. 40. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  41. 41. Interactions Start EARLY
  42. 42. “The seeds ! of churn are ! planted early” ! – Lincoln Murphy! @lincolnmurphy!
  43. 43. Avoid BAD FIT Customers
  44. 44. Who Feels the Acute Pain? •  Sales •  Implementation •  Product •  Marketing •  Support •  Account Management •  Customer Success Management •  Your Customer! @lincolnmurphy
  45. 45. Acquire customers with
 SUCCESS POTENTIAL
  46. 46. Technical Fit Functional Fit Competence Fit Experience Fit Cultural Fit @lincolnmurphy
  47. 47. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  48. 48. Required Outcome Appropriate Experience Desired Outcome WHAT your customer needs to achieve HOW they need to achieve it@lincolnmurphy
  49. 49. Customer Characteris9cs Method Customer (segment) Desired Outcome @lincolnmurphy Required Outcome Appropriate Experience
  50. 50. Air Travel Desired Outcome – Air Travel @lincolnmurphy Point A è B Safely & Quickly
  51. 51. 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
  52. 52. 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
  53. 53. Churn is the SYMPTOM of an Underlying Disease
  54. 54. @lincolnmurphy
  55. 55. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  56. 56. Without Customer Success •  Stagnating Customers •  Customer Churn •  Revenue Churn •  Reputation Suffers •  TAM shrinks •  Sales Friction Increases •  Sales Cycles Extend •  CAC Increases •  Talent Acquisition Suffers •  Company Value Drops @lincolnmurphy
  57. 57. With Customer Success •  Expanding Customers •  Net Revenue Retention •  Great Reputation •  TAM Increases •  Sales Friction Decreases •  Sales Cycles Shorten •  CAC Efficiency •  Talent Acquisition Improves •  Company Value INCREASES @lincolnmurphy
  58. 58. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  59. 59. Customer. SUCCESS.
  60. 60. When your CUSTOMERS Succeed...
  61. 61. YOU Succeed!
  62. 62. Thank You!
 @lincolnmurphy lincoln@lincolnmurphy.com
  63. 63. 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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