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The Age of the Customer, 2018

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Dan Steinman's presentation at CXO, VP & Directors of SAAS Firms Seminar hosted by Intrinsic Executive Research. Do you want to know why everyone is talking about Customer Success? Is everyone really moving to a recurring revenue model? Does anyone actually know how to help me through this transition? Here is a unique chance to see what one of the world's leading experts, Dan Steinman, GM of Gainsight EMEA, thinks about the topic.

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The Age of the Customer, 2018

  1. 1. Dan Steinman
  2. 2. Dan Steinman Insert Photo Golden Rule Treat others as you would like to be treated Success for All We are in this together and our success is tied to yours Childlike Joy Find the joy in each moment Stay Thirsty Always striving to innovate Shoshin Approach situations with the Beginner’s Mind VP of Customer Success VP of Customer Success Chief Customer Officer Chief Evangelist General Manager, EMEA
  3. 3. • In the beginning • Changing business models • ROI of Customer Success • Customers as a Growth Engine • Organization and Leadership • Customer Success in Practice What I’ll Be Discussing
  4. 4. But First…ChildlikeJoy
  5. 5. Question #1 1. In theTV show “SiliconValley”, who runs the incubator? A. Richard Hendrix B. Big Head C. Erlich Bachman D. Gavin Belson
  6. 6. Question #1 1. In theTV show “SiliconValley”, who runs the incubator? A. Richard Hendrix B. Big Head C. Erlich Bachman D. Gavin Belson
  7. 7. Insert Photo Customer Success Everybody’s Talking About It Tech Go-to-Market: Make Customer Success a Cornerstone of Your Customer Experience Strategy Customer Success Management is the Key to Outstanding B2B Customer Experiences Grow Fast or Die Slow: Focusing on Customer Success to Drive Growth How Smart, Connected Products Are Transforming Companies
  8. 8. Insert Photo Customer Success Everybody’s Talking About It Tech Go-to-Market: Make Customer Success a Cornerstone of Your Customer Experience Strategy Customer Success Management is the Key to Outstanding B2B Customer Experiences Grow Fast or Die Slow: Focusing on Customer Success to Drive Growth How Smart, Connected Products Are Transforming Companies So how can a midsize manufacturer “break on through to the other side” …? Their best bet is to take a page out of the SaaS vendors’ playbook and deploy a customer success function. - Geoffrey Moore
  9. 9. WAVES OF TRANSFORMATION
  10. 10. • TheProductEra • Demandexceedssupply • Focusonthesupplychain • Sixsigma • Internetchangeseverything • SystemsofRecord • SAP,Oracle,Cisco,Microsoft,Intel • B2BenablesB2C • CustomerSupport • Theas-a-ServiceEra • Supplyexceedsdemand • Focusonthecustomer • Userexperiencedesign • Cloud+Mobilechangeseverything • SystemsofEngagement • Salesforce,Amazon,Apple,Microsoft • B2CenablesB2B • CustomerSuccess The Seismic Shift from Product to Services - Geoffrey Moore
  11. 11. CUSTOMERS BEFORE CUSTOMERS TODAY The only source of competitive advantage is the one that can survive technology-fueled disruption — an obsession with understanding, delighting, connecting with, and serving customers. WELCOMETOTHE AGE OFTHE CUSTOMER
  12. 12. Customer Success is being driven by changing business models
  13. 13. Question #2 2. Which actor/actress has appeared in the most episodes of “Made in Chelsea”? A. Spencer Matthews B. Jamie Laing C. LouiseThompson D. Binky Felstead
  14. 14. Question #2 2. Which actor/actress has appeared in the most episodes of “Made in Chelsea”? A. Spencer Matthews B. Jamie Laing C. LouiseThompson D. Binky Felstead
  15. 15. Wave 1: Logistics SUPPORT DISTRIBUTION PRODUCT
  16. 16. Wave 2:Transactions SUPPORT SALES PRODUCT
  17. 17. EXPAND Wave 3: Subscriptions ADOPT RENEW SUPPORT LAND PRODUCT Customer Success
  18. 18. Wave 4: Consumption CUSTOMER SUCCESSSALEPRODUCT
  19. 19. Wave 5: Outcomes SALEPRODUCT SUCCESS SUCCESS SUCCESS
  20. 20. THE BAR FOR CUSTOMER SUCCESS WILL KEEP GOING UP Logistics Transactions Subscriptions Consumption Outcomes
  21. 21. The ROI of Customer Success is also evolving
  22. 22. Question #3 3. According to the musical “Hamilton”, Alexander Hamilton was? A. An immigrant B. Scotsman C. An orphan D. All of the above
  23. 23. Question #3 3. According to the musical “Hamilton”, Alexander Hamilton was? A. An immigrant B. Scotsman C. An orphan D. All of the above
  24. 24. Churn Level 1
  25. 25. Expansion Level 2
  26. 26. Acquisition Level 3
  27. 27. CUSTOMER SUCCESS DRIVES NEW BUSINESS SALES Because your prospects are talking to your customers
  28. 28. CUSTOMER SUCCESS DRIVES NEW BUSINESS SALES "Success begets success in terms of customer deployments and having truly happy customers, and I think we're starting to see a 'network effect' of companies talking to each other and comparing notes on which solutions work, and which ones don't." Aneel Bhusri CEO,Workday
  29. 29. Pricing Level 4
  30. 30. CUSTOMER SUCCESS DRIVESYOUR ABILITYTO RAISE PRICES
  31. 31. ALL WRAPPED IN ADVOCACY ADVOCACY ChurnExpansion Pricing Acquisition
  32. 32. ASYOU MATURE,YOUR FOCUS WILL CHANGE MATURITY Churn Expansion Acquisition Pricing
  33. 33. 86% 89% 89% 95% 13% 13% 16% 22% 117% 105%102%99% Customer Success Maturity Avg. Gross Retention % Avg. Expansion Rate % Avg. Net Retention %
  34. 34. Customers asYour New Growth Engine
  35. 35. Question #4 4. In theTV show “SiliconValley”, the incubator is in what California city? A. Menlo Park B. Palo Alto C. Sunnyvale D. San Francisco
  36. 36. Question #4 4. In theTV show “SiliconValley”, the incubator is in what California city? A. Menlo Park B. Palo Alto C. Sunnyvale D. San Francisco
  37. 37. In the Age of the Customer, you can no longer acquire your way to success ADAPT OR DIE
  38. 38. BECAUSE ACQUISITION IS EXPENSIVE
  39. 39. WHILE EXPANSION AND RETENTION ARE NOT
  40. 40. In the Age of the Customer, Net Retention is the most important metric in your business
  41. 41. 100% -9% -11% +13% +18% 111% Starting Churn Downsell Upsell Cross- Sell Net Retention Expansion THE RECURRING REVENUEWATERFALL
  42. 42. RETENTION IS MORE IMPORTANTTHAN EVER
  43. 43. BECAUSETHAT’SWHERETHE REVENUE COMES FROM Installed Base New Business
  44. 44. BECAUSETHAT’SWHERETHE REVENUE COMES FROM
  45. 45. Lead
  46. 46. Lead Opportunity
  47. 47. Lead Opportunity New Customer
  48. 48. Lead Opportunity New Customer Successful Customer
  49. 49. Successful Customer Expansion New Logo Renewal
  50. 50. Finance Sales Renewals Support Services Marketing Product Customer
  51. 51. Your customers are the new GROWTH ENGINE
  52. 52. STAND UP! It’sTrue/False time
  53. 53. Organization and Leadership
  54. 54. Question #5 5. Who wonThe Great British Bake-Off 2017? A. Sophie B. Katie C. Paul D. Steven
  55. 55. Question #5 5. Who wonThe Great British Bake-Off 2017? A. Sophie B. Katie C. Paul D. Steven
  56. 56. HOW SHOULD WE ORGANIZE?
  57. 57. ORGANIZETO • Make a statement of importance
  58. 58. ORGANIZETO • Make a statement of importance • Create healthy tension
  59. 59. ORGANIZETO • Make a statement of importance • Create healthy tension • Benefit your customers, not you
  60. 60. ORGANIZETO • Make a statement of importance • Create healthy tension • Benefit your customers, not you • Provide clear accountability
  61. 61. Leadership
  62. 62. Leadership • Willingness to get her hands dirty
  63. 63. Leadership • Willingness to get her hands dirty • Customer-facing experience
  64. 64. Leadership • Willingness to get her hands dirty • Customer-facing experience • Process/data-oriented
  65. 65. Leadership • Willingness to get her hands dirty • Customer-facing experience • Process/data-oriented • Influence management
  66. 66. Building Blocks of a Customer Success Program
  67. 67. Question #6 6. In theTV show “The Big BangTheory”, what nickname did the guys give to Stephen Hawking? A. Robot B. Physicsman C. The Brain D. Wheels
  68. 68. Question #6 6. In theTV show “The Big BangTheory”, what nickname did the guys give to Stephen Hawking? A. Robot B. Physicsman C. The Brain D. Wheels
  69. 69. Customer Success in Practice Small # of customers Long tail of customers High Value MidValue LowerValue
  70. 70. 3 2 1 SegmentYour Customers
  71. 71. Why SegmentYour Customers?
  72. 72. Why SegmentYour Customers? Because you can’t afford to treat them all alike
  73. 73. Your segmentation model is actually a financial model
  74. 74. Typical Segmentation Model • How much are they paying you? • How much could they be paying you? • Optional - Industry/Brand/? Don’t overthink it! 3 2 1
  75. 75. TechTouch MidTouch High Touch Each Segment = DifferentTouch Model
  76. 76. TechTouch MidTouch High Touch Create an Engagement Model by Segment Map The Engagemen t Model
  77. 77. Kickoff Meeting Strategy Alignment / Discovery Health Check Onboarding Close Meeting End User Survey Renewal Preparation Renewal Negotiation Contract Signature Contract Expiry Proactive (Date-driven) Welcome Email 1:Many Training Modules Onboarding CSAT Survey Exec Business Review Low Adoption Detractor NPS Survey Multiple Support Tickets Champion Leaves Decline in Usage Increase in usage Positive NPS Survey 90% Deployed Adopt Expand/RenewOnboardLand 1:1 Touch = Blue 1:M Outreach = Purple Risk = Red Opportunity = Green Reactive (Data-driven) MAP THE CUSTOMER LIFECYCLE
  78. 78. TechTouch MidTouch High Touch Your Engagement Model Will DriveYour Headcount Model H E A D C O U N T Map The Engagement Model
  79. 79. TechTouch MidTouch High Touch Establish RetentionTargets by Segment H E A D C O U N T Establish Retention Targets Map The Engagement Model
  80. 80. CustomerSuccess in Practice 1. Segmentyourcustomers
  81. 81. CustomerSuccess in Practice 1. Segmentyourcustomers 2. Buildanengagementmodelforeachsegment
  82. 82. CustomerSuccess in Practice 1. Segmentyourcustomers 2. Buildanengagementmodelforeachsegment 3. Use engagementmodeltodriveheadcountmodel
  83. 83. CustomerSuccess in Practice 1. Segmentyourcustomers 2. Buildanengagementmodelforeachsegment 3. Use engagementmodeltodriveheadcountmodel 4. Createretentiontargetsforeachsegment
  84. 84. A Simple Model SALES Manage Measure Results ££ (Bookings/Revenue)PipelineActivities that grow/move pipe Customer Success ££ (Net Retention)Health ScoreActivities that improve HS • Training sessions • QBRs • Calls
  85. 85. Trends in Customer Success
  86. 86. Question #7 7. In the Portuguese translation of the Customer Success book, which author’s name appears first? A. Nick Mehta B. Dan Steinman C. Lincoln Murphy D. BenWatkins
  87. 87. Question #7 7. In the Portuguese translation of the Customer Success book, which author’s name appears first? A. Nick Mehta B. Dan Steinman C. Lincoln Murphy D. BenWatkins
  88. 88. CustomerSuccessTrends 1. CustomerSuccessdrivesSales
  89. 89. Why hire 10 reps when you can hire 10K customers to sell for you?
  90. 90. CustomerSuccessTrends 1. CustomerSuccessdrivesSales 2. Becomingprescriptive
  91. 91. Customer SuccessToday One-size- fits-all Custom suit
  92. 92. “We’re a little bit different than most companies…”
  93. 93. CustomerSuccessTrends 1. CustomerSuccessdrivesSales 2. Becomingprescriptive 3. CSisacompanywidepriority
  94. 94. Everyone Else… Responsible for “Customer Success” It must be their fault…
  95. 95. CS = CO + CX
  96. 96. CS > CSM
  97. 97. Everyone is in Customer Success
  98. 98. CustomerSuccessTrends 1. CustomerSuccessdrivesSales 2. Becomingprescriptive 3. CSisacompanywidepriority 4. TeammatesuccessdrivesCS
  99. 99. The Profession Is Growing
  100. 100. You Can’t Be Customer- DrivenWithout Being Teammate Driven
  101. 101. Everyone is InTeammate Success
  102. 102. “It’s Not Personal – It’s Business”
  103. 103. “It’s Not Business – It’s Personal”
  104. 104. In a world where the Sales motion never ends, there’s no such thing as post-Sales WORDS OF WISDOM
  105. 105. The primary driver of our success is the customer’s success? WHAT IF?
  106. 106. Q&A

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