How to use Customer Success to Prep for and Drive Contract Renewals


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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 use Customer Success to Prep for and Drive Contract Renewals - is from Pulse 2014, the biggest Customer Success industry event ever and included panelists from Concur, InsideView, Marketo

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How to use Customer Success to Prep for and Drive Contract Renewals

  1. 1. How to Prep for and Drive Renewals David Samuels, Concur Sean Cox, Marketo Robert Asscherick InsideView
  2. 2. Concur Vice President, Client Development David Samuels • CNQR - 2013 - $545 Million • 20,000+ customers in 100+ countries • 4,000+ global employees • 25 Million registered users • Send over $12 Billion to banks per year • 750,000 logins daily
  3. 3. Customer Success Vision • Anticipating, identifying, and meeting our customer needs is key to Concur’s continued success. • Client Development exists as a focal point for the customer to achieve success with Concur. • We will measure our impact through revenue growth, customer retention, and relationship health.
  4. 4. Driving Renewals • Renewals are driven by our Client Development Organization • Client Executives manager entire client lifecycle • Traditionally, very high customer retention • Renewal are a source of new Cross-sell & Up-sell revenue • Saas Model requires uniqure approach to prepare for renewal
  5. 5. Concur Customer Success Index Product Set Engagement Client Satisfaction Contractual Performance Feature Adoption
  6. 6. Data preparation for the renewals process
  7. 7. Concur Customer Success Index Product Set Engagement Client Satisfaction Contractual Performance Feature Adoption
  8. 8. InsideView Director, Customer Success – Key Account Group Robert Asscherick A pioneer in CRM Intelligence, InsideView provides a suite of software solutions for sales and marketing leaders that delivers critical intelligence directly into CRM. Our CRM Intelligence platform provides the industry’s most accurate market data, valuable business insights, and strongest professional connections so that marketing professionals can deliver more leads, sales executives can close more deals, and customer success managers can retain and grow accounts. The InsideView CRM Intelligence Platform is integrated with Marketo, Microsoft Dynamics CRM, Oracle,, SAP, and SugarCRM. Only InsideView improves performance at every stage of the marketing and sales process and is proven to increase leads, revenue and lifetime customer value.
  9. 9. Roles & Responsibilities: CSM vs Renewal Team
  10. 10. Success Starts at the Ears Listen Up! • It is fundamental to your success to understand your customer’s strategic initiatives. • How are your products/services aligned to drive success in those initiatives? • What itch are they really trying to scratch? • Where/How else can you add value in the organization? • Usage must support achieving these goals.
  11. 11. Your Customer’s Success Drives Renewals • CSM’s are your best weapon for retaining and growing revenue • Renewal and growth conversations should be a natural extension of your efforts to help your customers achieve their strategic goals • Understanding your customers interdepartmental/divisional dependencies exposes organic whitespace conversations • Renewal discussions should NOT be transactional - start early, discuss your customer’s growth expectations, long- term initiatives, next year’s plans, etc. • Always be asking who, how, why, when can we be helping you more • Knowing the external factors is mission critical – Leadership Changes, M&A, Funding, Product Releases, Expansion – The more you know, the better your team will protect and grow your revenue!
  12. 12. Marketo Director of Account Management Sean Cox • 4 years at Marketo • Team of 20 Account Managers • Responsible for retention & up-sell • Divided by customer size & segment • Portfolio of named accounts
  13. 13. Fun Facts about Marketo Leader in cloud-based marketing software >3,000 customers in 36 countries >190 ecosystem partners >40,000 Marketing Nation community members >500 employees in U.S., Europe, Australia, Israel (MKTO)
  14. 14. 5. MEASURE & OPTIMIZE Maximize impact of marketing investments 1. PLAN & BUDGET Plan marketing investments and track expenses 2. GENERATE DEMAND Attract more potential customers 3. BUILD RELATIONSHIPS Establish deep and lasting 1:1 customer relationships Modern Marketers Need a Complete Solution 4. DRIVE SALES Drive effective conversion from new prospect to sale
  15. 15. Marketo 2014 Goals • Focus on Dollar Retention Target as the core measure of performance • Manage Upsell to existing bookings plan • Improve dollar retention • Fully transition from Renewal Management to Pro-active Account Management
  16. 16. Renewal Metrics & KPIs
  17. 17. KPIs: Retention and URE $120K Closed $20K $40K $60K $80K $100K $140K Renewal Opportunity Excl MYR Retained APOR Partial LossFull Loss Retention Rate Churn Usage Right Expansion Additional Discount Reduction of SKU Loss of SKU $100K $0K Discount Recapture Increase of Existing SKU Technical Add On $200K $0K Partial Loss Analysis Usage Rights Expansion $100K Open
  18. 18. KPIs: Retention and URE $120K $20K $40K $60K $80K $100K $140K $160K Beginning Customer ARR* Retained ARR Partial LossFull Loss Net Annual Recurring Revenue Rate Ending Customer ARR” Cross Sell Churn Expansion Revenue
  19. 19. Operational Descriptions
  20. 20. Batch Monthly Resolution Pacing 20% 50% 95% 100% 0 POR Month End +30-30-60-90 Objective: Manage pacing of contract resolution against planned rates to ensure minimal in month compression of contracts, reducing risk of contractual exposure and reduced sales cycle Plan – Batch Month End Pacing Actual M-1 Batch: 100% “Finance” Closed Actual M0 – Current Month Batch Actual M+1 Batch Actual M+2 Batch
  21. 21. Planned Retention/URE Closed Won By Batch M-1 M0 M+1 M+2 Plan – Closed Won Retention Actual – Closed Won Retention Plan – Closed Won Renew URE Actual – Closed Won Renew URE Plan – Closed Non Renewal URE Actual – Closed Non Renewal URE Objective: Determine closed won contract dollars against monthly batch resolution and retention rates and associated URE with renewals ClosedWon
  22. 22. Q&A