Win by Design, Not by Chance
Hello, my name is Lincoln Murphy
I’m excited to be presenting to
@LincolnMurphy
Stay longer
Buy More
Expand Internally
Advocate Externally
@lincolnmurphy
Grow BECAUSE of
your effort, not 

IN SPITE of it
Desired Outcome
Customer Success is when customers achieve their
interactions
through with your
companytheir 	
“	
”	-  Lin...
EXPANSION comes
from the Customer’s
SUCCESS
Customer
SUCCESS-
driven Growth
As customers
SUCCEED and
EVOLVE…
…their relationship
with us should
EVOLVE and GROW
Customer Success is NOT…
•  Just a Department
•  Customer Support
•  Account
Management
•  Happiness or
Delight
•  Churn M...
Customer Success
is a GROWTH
ENGINE
Customer Success Management
is the Orchestration, Operationalization,
Instrumentation, and Intervention
designed to ensure...
Customer
Success
Management
@lincolnmurphy
Your Success is
meeting your
REVENUE
FORECAST
Their SUCCESS is
achieving their
Desired Outcome
Our success is
DIRECTLY tied to
their success
Customer Success Directly
Impacts Company
VALUATION
Revenue x Multiplier = Value
Company Valuation
Revenue x Multiplier = Value
o There’s
more!
Company Valuation
Revenue x Multiplier = Value
o  Customer Lifetime Value (LTV)
o  Customer Acquisition Cost (CAC)
o  Net Revenue Retention ...
Year 1 Year 2 Year 3 Year 4 Year 5
80%
20%
Customer Lifetime Value
@lincolnmurphy
Year 1 Year 2 Year 3 Year 4 Year 5
> 95%
< 5%
Customer Lifetime Value
@lincolnmurphy
Customer Lifetime Value
Year 1 Year 2 Year 3 Year 4 Year 5
> 98%
< 2%
Year 6
@lincolnmurphy
Resource Allocation
Year 1 Year 2 Year 3 Year 4 Year 5
> 98%
< 2%
Year 6
@lincolnmurphy
Desired Outcome
Customer Success is when customers achieve their
interactions
through with your
companytheir 	
“	
”	-  Lin...
Interactions
Start
EARLY
“The seeds !
of churn are !
planted early” !
– Lincoln Murphy!
@lincolnmurphy!
Avoid
BAD FIT
Customers
Acquire
customers with

Success
POTENTIAL
Technical
Fit
Functional
Fit
Competence
Fit
Experience
Fit
Cultural
Fit
@lincolnmurphy
Why Do You
EXIST?

POWER

is the capacity to
alter the state of
others
You EXIST to
alter the state of
your customers
You can’t
TAKE

power
Power is
GIVEN
Power requires
TRUST
Newton’s
3rd Law
“What go
around come 
around, kid.” 
– Cypress Hill
Make your
CUSTOMERS

powerful!
They’ll make
YOU
powerful!
How will they
make YOU
powerful?
Stay longer
Buy More
Expand Internally
Advocate Externally
@lincolnmurphy
How do you make
your customers
POWERFUL?
By making them
SUCCESSFUL
Required	
Outcome	
Appropriate	
Experience	
Desired Outcome
What your
customer
needs to
achieve
How they
need to
achieve i...
Customer	
Characteris9cs	
Method	
Customer	
(segment)	
Desired Outcome
@lincolnmurphy
Required	
Outcome	
Appropriate	
Expe...
Air	Travel	
Desired Outcome – Air Travel
@lincolnmurphy
Point	
A	è	B		
Safely	&	
Quickly
Needs	to	
work,	no	
9me	to	eat	
Air	Travel	
Desired Outcome – Air Travel
@lincolnmurphy
Point	
A	è	B		
Safely	&	
Quickly	
...
Save	money,	
enjoy	
des9na9on	
Air	Travel	
Desired Outcome – Air Travel
@lincolnmurphy
Point	
A	è	B		
Safely	&	
Quickly	
C...
@lincolnmurphy
Churn is the
SYMPTOM of an
Underlying Disease
Desired Outcome
Customer Success is when customers achieve their
interactions
through with your
companytheir 	
“	
”	-  Lin...
Without Customer Success
•  Stagnating Customers
•  Customer Churn
•  Revenue Churn
•  Reputation Suffers
•  TAM shrinks
• ...
With Customer Success
•  Expanding Customers
•  Net Revenue Retention
•  Great Reputation
•  TAM Increases
•  Sales Fricti...
Desired Outcome
Customer Success is when customers achieve their
interactions
through with your
companytheir 	
“	
”	-  Lin...
Customer.
SUCCESS.
When your
CUSTOMERS
Succeed...
YOU
Succeed!
Thank You!

@lincolnmurphy
lincoln@lincolnmurphy.com
Awesome! Thanks for your attention.
Learn more about me at http://sixteenventures.com
And contact me via lincoln@lincolnmu...
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy
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SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy

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On September 22, 2016 in Dublin, Ireland, Lincoln Murphy gave a keynote presentation called Win by Design, Not by Chance: Customer Success as a Growth Engine.

The presentation covers everything from what Customer Success is to how it impacts company valuation. From Onboarding to ongoing engagement, and from sales to land-and-expand, this presentation was designed to introduce the audience to Customer Success-driven Growth.

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SaaStock 2016 Keynote: Win by Design, Not by Chance: Customer Success as a Growth Engine by Lincoln Murphy

  1. 1. Win by Design, Not by Chance 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. Grow BECAUSE of your effort, not 
 IN SPITE of it
  4. 4. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  5. 5. EXPANSION comes from the Customer’s SUCCESS
  6. 6. Customer SUCCESS- driven Growth
  7. 7. As customers SUCCEED and EVOLVE…
  8. 8. …their relationship with us should EVOLVE and GROW
  9. 9. 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
  10. 10. Customer Success is a GROWTH ENGINE
  11. 11. Customer Success Management is the Orchestration, Operationalization, Instrumentation, and Intervention designed to ensure customers achieve their ever-evolving Desired Outcome. “ ” -  Lincoln Murphy @lincolnmurphy
  12. 12. Customer Success Management @lincolnmurphy
  13. 13. Your Success is meeting your REVENUE FORECAST
  14. 14. Their SUCCESS is achieving their Desired Outcome
  15. 15. Our success is DIRECTLY tied to their success
  16. 16. Customer Success Directly Impacts Company VALUATION
  17. 17. Revenue x Multiplier = Value Company Valuation
  18. 18. Revenue x Multiplier = Value o There’s more! Company Valuation
  19. 19. 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
  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 > 98% < 2% Year 6 @lincolnmurphy
  24. 24. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  25. 25. Interactions Start EARLY
  26. 26. “The seeds ! of churn are ! planted early” ! – Lincoln Murphy! @lincolnmurphy!
  27. 27. Avoid BAD FIT Customers
  28. 28. Acquire customers with
 Success POTENTIAL
  29. 29. Technical Fit Functional Fit Competence Fit Experience Fit Cultural Fit @lincolnmurphy
  30. 30. Why Do You EXIST?

  31. 31. POWER
 is the capacity to alter the state of others
  32. 32. You EXIST to alter the state of your customers
  33. 33. You can’t TAKE
 power
  34. 34. Power is GIVEN
  35. 35. Power requires TRUST
  36. 36. Newton’s 3rd Law
  37. 37. “What go around come around, kid.” – Cypress Hill
  38. 38. Make your CUSTOMERS
 powerful!
  39. 39. They’ll make YOU powerful!
  40. 40. How will they make YOU powerful?
  41. 41. Stay longer Buy More Expand Internally Advocate Externally @lincolnmurphy
  42. 42. How do you make your customers POWERFUL?
  43. 43. By making them SUCCESSFUL
  44. 44. Required Outcome Appropriate Experience Desired Outcome What your customer needs to achieve How they need to achieve it@lincolnmurphy
  45. 45. Customer Characteris9cs Method Customer (segment) Desired Outcome @lincolnmurphy Required Outcome Appropriate Experience
  46. 46. Air Travel Desired Outcome – Air Travel @lincolnmurphy Point A è B Safely & Quickly
  47. 47. Needs 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
  48. 48. 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
  49. 49. @lincolnmurphy
  50. 50. Churn is the SYMPTOM of an Underlying Disease
  51. 51. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  52. 52. 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
  53. 53. 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
  54. 54. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  55. 55. Customer. SUCCESS.
  56. 56. When your CUSTOMERS Succeed...
  57. 57. YOU Succeed!
  58. 58. Thank You!
 @lincolnmurphy lincoln@lincolnmurphy.com
  59. 59. Awesome! Thanks for your attention. Learn more about me at http://sixteenventures.com And contact me via lincoln@lincolnmurphy.com @LincolnMurphy Win by Design, Not by Chance

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