How to Develop a Quarterly Business Review

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The most successful Enterprise SaaS companies know that growing revenue only through new customer acquisition is the less efficient way to scale. Rather, they understand that growing revenue within your existing customer base - through up-sells, cross-sells, and expanded use - is the most profitable way to scale.

In fact, Enterprise SaaS companies that grow revenue - and company valuation - by expanding revenue within their existing customer base also know the key to making this work is to focus on - and operationalize - Customer Success.

This presentation - How to Develop a Quarterly Business Review - is from Pulse 2014, the biggest Customer Success industry event ever and included panelists from Gild, Box, Zuora, Workday

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  • Quick snapshot of Gild’s history:-2 year old company. -Who are our buyers and users. -Product is Saas Model, Subscription based per seat or team per year-Customer Success’ structure & our high-tough model-Lead into everyone Getting QBRs and our main focus as a new company to drive alignment between buyers & users and the ROI conversation.
  • Early on, we realized QBRs were important for a number of reasons. One, was that we needed to get our buyers and our users on the same page. Buyers had grand visions the users weren’t exposed to. What we cover: Feedback/NPS, Usage, Engagement Level of Customers, Suggestions for Success, Executive Relationships, Product Roadmap. The entire QBR is framed as a conversation to get the buyers and users aligned.Customer Success enables this conversation. Drive alignment on vision & goals through education of the user and buyer. Joint Accountability: Hold the users accountable for using the tool. Hold the buyers accountable for enabling users’ success. CS gets positioned as the Trusted Advisor because we are in the middle of important visionary conversations and we are the subject expert on the field. Help coach and drive the conversation.Alignment leads to a clear ROI conversation.
  • ROI:The ROI conversation has 2 main outcomes.It is necessary for the Customer’s Success. It can greatly impact your value prop and company strategy. Customer Relationship-Need to have measurable goals, realistic, time driven. If you don’t have ROI conversations, you get a lot of people that love your customer service but aren’t going to renew because they can’t proved the product worked. We made that mistake a few times in the beginning before our QBR process. Because we weren’t having the specific QBR conversation, we weren’t having specific ROI conversations. A customer would tell us how much they liked us and our new product, but they hadn’t been keeping track of getting hires with it or expanding their pipeline. When the renewal came around, they told us they hadn’t been measuring, so they couldn’t renew and didn’t have proof of ROI. -Coaching Customers – At a young stage with a startup product, the QBR is a good time to reaffirm your value prop and get the customer reexcited about the potential and vision-Learning from Customers – New products have ROI you’ve never even thought of! Let your customers educate you. Learning from customers can have a huge impact on Company Strategy, especially at a small stage. -We had positioned ourselves as a discovery tool for recruiters to find developers. Our customers confirmed that was part of ROI, but they also said a huge part was developers leveraging the system to get info before interviews to engage people for their team. We sold Value Prop A, then they got A, B & C, so we changed our Company strategy to reflect those new value props. -Alignment with Customer & Gild. Alignment with users and value prop. If they aren’t doing customer success, then they will be missing the mark. -Using QBRs to discuss ROI will help your value prop and drive sales.
  • These are the essentials that drive success in the Subscription Economy.Pricing and packaging is a lever that businesses use in the subscription economy to drive growth. So it’s essential that you have a system that allows you to price and package to support your business objectives.In the subscription economy, we find that it’s essential to make it easy to sign on new customers rapidly, across any channel. Online self service, through a sales rep, or even via partnersOnce you’ve signed up customers, an essential to ensuring sure you keep customers happy, and keep churn low is to ensure that you are sending accurate and easy to understand bills to those customers in a timely fashionIn the subscription economy you are collecting cash more often, and through many payment methods. So it’s essential to maximize your cash collections across your customer base without increasing the efforts and costs associated with collecting that cashOften, one of the major reasons why customers churn is that they feel they are not in control of their subscriptions. In the subscription economy, since customers are constantly using your service, it’s essential that they feel that they are in control. They should be able to change their subscriptions as their needs evolve without experiencing billing disruptions, or receiving confusing bills as a result of changes. In the subscription economy, as your business grows your finance team is inherently dealing with many more transactions than in a traditional product business. A single order can spawn 12 invoices, those invoices can then spawn even more payments, and yet more revenue recognition events. As a result, it is essential that your finance team is able to properly close the books every month, and so it in a compliant and auditable fashion.Since your growth model and your operating plan is now based on forward looking metrics like ARR growth, MRR growth, customer lifetime value, it is essential that you gain visibility into these key forward looking subscription metrics so you can make timely business decisions.Once you have visibility into these metrics, then it is essential to compare how you are tracking against your company’s original growth objectives. Often businesses find that when they analyze this data, they see opportunities to achieve more growth, or reduce churn by trying new pricing strategies and iterating on their pricing models. So it becomes essential to be able to quickly roll out new price changes.And finally, it is essential that you feel confident that the system that is the heart of your subscription revenue is scalable, secure, and enterprise grade.
  • How to Develop a Quarterly Business Review

    1. 1. How to Develop a Quarterly Business Review Stephanie Stapleton, Gild Helen Valentine, Workday April Oman, ZuoraNina Bankar, Box
    2. 2. Stephanie Stapleton Gild is changing the way everyone – from startups to Fortune 1000 organizations – finds and evaluate technical talent. Gild scours the web for developers, using predictive technology to automatically evaluate their abilities. That means you not only find candidates – you know who can get the job done. Director, Customer Success
    3. 3. • Launched June 2012 • The Product: Gild Source • Our Customers: Talent Acquisition Leaders, Recruiters, and Developers looking to hire software engineers • Currently 250 Customers • 10 People on our CS Team • High-Touch Engagement Model • Everyone gets QBRs! Gild Snapshot
    4. 4. QBRs: Alignment between Buyers and Users Alignment - Accountability - CS as Trusted Advisor - ROI Conversation BUYE R Customer Success
    5. 5. The ROI Conversation Customer Success Company Strategy Value Prop
    6. 6. April Oman VP, Customer Success @ Zuora Zuora is the global leader in subscription commerce and billing, helping companies in every industry transition to the Subscription Economy. Enterprise leaders and high-growth companies alike use Zuora's multi- tenant cloud platform to launch, scale, and monetise their subscription services. Zuora's applications work where traditional ERP applications fail: Subscription pricing, quoting, orders, billing, payments, and renewals. Built from the ground up by SaaS industry veterans from salesforce.com, PayPal, and Netsuite, Zuora services innovative customers like Box, DocuSign, Zendesk, News UK, Dell, Xplornet, Ustream and Fairfax Media. Learn more www.zuora.com .
    7. 7. April Oman • Background in consulting, customer relationship management, SaaS, customer experience, and Human Resources • Joined Zuora Aug 2012 • VP of Customer Success: • Responsible for Customer Retention, Adoption, Renewals, Identifying Upsells/Expansion Opportunities, Connecting Customers to Advocacy Initiatives, 9 Keys for Subscription Success & NPS
    8. 8. Seven+ Years of Incredible Growth The Leader in Commerce, Billing and Finance Solutions for the Subscription Economy Zuora founded Series A; First product launched Series B, Zuora featured in WSJ Series C; Zuora announces 1B in contracted revenue Series D, Trademarks Subscription Economy; EMEA expansion $20Bn contracted invoice volume; Series E funding; 50th product release 2013201220112010200920082007 Offices: Foster City, London, Sydney, Beijing, Chicago, Atlanta $132.5M Funding 650+ Customers 300+ Employees 95% Customer Sat Zuora wins AlwaysOn Company of the Year Award; expands to Asia 2014 Zuora wins Gold Stevie Award for Customer Service Excellence
    9. 9. Quarterly Business Reviews – WE DON‘T DO THEM • A story… It involves Glamping!
    10. 10. Delivering Customer Success is Hard Define it Organize around it Measure it There is complexity in how you In SaaS You have to worry about the relationship; how do you ensure renewal, reduce churn & get that upsell?
    11. 11. We were Disconnected from our customers We needed a blueprint A unified answer to a simple question: What do our customers want from us?
    12. 12. Our blueprint • Customers embraced it • Analysts embraced it • Zeos embraced it 9 Keys for Subscription Success
    13. 13. This is where The Glamping comes in
    14. 14. So, what do CSMs do? • Structured using 9 Keys for Subscription Success – Doesn’t have to be all 9 keys at once • Triggers – Usage, Renewal Date, Upsell/Expansion Opportunity, Escalation • Customer Attendees – Marketing (price), Sales (acquire), Finance (bill, collect, account, measure), IT (scale); they all care about nurture • When – At least 90 days post go-live Optimization Workshops
    15. 15. So, what do CSMs do? • Preparation – Review usage, order form terms (are they using what they bought?), Zuora roadmap, tickets, conversations with the customer to identify goals & challenges • Facilitated workshop – Use a whiteboard! • Outcomes – Priorities aligned to business goals – Relationship based on value Optimization Workshops (continued)
    16. 16. Office Reminder
    17. 17. AppendixVision: Enable our customers to achieve success in the subscription economy. CSM • Increase product adoption • Retain every customer ensuring easy renewal • High customer satisfaction • Identify upsell/expansion opportunities • Connection to advocacy activities • Operationalize the 9 Keys Customer Success Teams & Priorities Global Support • Answer tickets • Foster relationships through enhanced customer support community experience • Maintain customer success rating • Reduce support ticket average resolution times • Reduce Prod (incidents) impact & resolution times Zuora University • Create expertise; Increase Customer, Partner & Employee understanding of all Zuora products
    18. 18. The 9 Keys for success with recurring revenue Price to support business objectives Enable new customers to subscribe on any channel Send accurate, easy to understand bills Collect cash fast through multiple methods Give customers control Close books faster while remaining compliant Gain visibility into key subscription metrics Roll out price changes and experiment Scalable, Reliable, Secure Appendix
    19. 19. Nina Bankar Box Box’s mission is to make businesses of all sizes more productive, competitive, and collaborative by connecting people and their most important information. Content on Box can be securely shared and easily accessed on the web, through iOS, Android and Windows Phone applications, and extended to partner applications, such as Google Apps, NetSuite and Salesforce. Headquartered in Los Altos, CA, Box is privately held and backed by several leading venture capital firms and strategic investors. Sr. Manager, Customer Success
    20. 20. Customer Success at Box
    21. 21. Why QBRs? • Business objectives and use cases • Goals and success metrics • Data and more data • Integrations • Next Steps
    22. 22. Helen Valentine Workday, Inc. (“Workday”) is a leading provider of enterprise cloud-based applications for human capital management (HCM), payroll, financial management, time tracking, procurement, and employee expense management. Our applications are designed for global enterprises to manage complex and dynamic operating environments. We provide our customers highly adaptable, accessible, and reliable applications to manage critical business functions that enable them to optimize their financial and human capital resources. Director, Customer Success Operations, Workday
    23. 23. Customer Success Who We Are and Who We Are Not
    24. 24. The Workday Approach Optimizes the full customer lifecycle
    25. 25. The Workday Approach Focuses on incremental adoption and ongoing value realization
    26. 26. Q & A

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