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Customer Success 2020

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How do you align your entire company around your customer's path to success? Learn here.

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Customer Success 2020

  1. 1. Customer Success 2020
  2. 2. Confidential & Proprietary @underscorevc Fundamental Change 22Confidential & Proprietary @underscorevc
  3. 3. Confidential & Proprietary @underscorevc Virtually everything we do is digitally connected 3 TRAVEL + TRANSPORTATION ENTERTAINMENT FOOD COMMUNICATION SHOPPING
  4. 4. Confidential & Proprietary @underscorevc@underscorevcConfidential & Proprietary 4 That was then. This is now. Retail Store Amazon, InstaCart, Wayfair
  5. 5. Confidential & Proprietary @underscorevc@underscorevcConfidential & Proprietary 5 That was then. This is now. Taxi Uber, Lyft
  6. 6. Confidential & Proprietary @underscorevc That was then. This is now. Confidential & Proprietary @underscorevc 6
  7. 7. Confidential & Proprietary @underscorevc New Business Models 7 The Digital Economy 7Confidential & Proprietary @underscorevc Connected Relationships
  8. 8. Confidential & Proprietary @underscorevc In the old world, this is how we saw it... + Deploy, SI’s Contact Centers Upgrades to new versions + Sell Deploy & Support Confidential & Proprietary @underscorevc 8
  9. 9. Confidential & Proprietary @underscorevc This is the Customer Journey ... Time @underscorevcConfidential & Proprietary 9 Value $LTV PROBLEM OBJECTIVE NEGATIVE TIME NEGATIVE VALUE OPTIMIZE IMPLEMENT TRAINING TEST ROLLOUT MEASURE PURCHASE
  10. 10. Confidential & Proprietary @underscorevc That was then, Product (feature, function) Experience (business outcome) Selling Partnering Everyone is in Sales Everyone is in Customer Success $$$ Pay upfront $ Pay as you go / use Maintenance, warranty for problems Subscription to succeed Upsell push Usage pull Vendor success Customer’s business success Vendor leads Customer is in charge Support the customer Live with the customer Tactical, short term Strategic, long term @underscorevcConfidential & Proprietary 10 this is now
  11. 11. New Rules, New Game… 11 Customer Rules Confidential & Proprietary @underscorevc
  12. 12. Confidential & Proprietary @underscorevc It’s their game… 12 Understand their game and what their definition of winning is... Confidential & Proprietary @underscorevc
  13. 13. Confidential & Proprietary @underscorevc What is Customer Success? 13 Delighting the customer by fully realizing their Objectives and delivering an Exceptional Experience in doing so.
  14. 14. Confidential & Proprietary @underscorevcConfidential & Proprietary @underscorevc Where do we go from here? 14
  15. 15. Confidential & Proprietary @underscorevc Align the entire company around the Customer‘s path to success... 15
  16. 16. Confidential & Proprietary @underscorevc MONETIZE An Action Plan for Customer Success 16 01 02 03 04 Chart the Path for the Customer to achieve their Objectives Move to a Customer-centric operational model Establish a Customer Success function as the internal advocate Align your Business Model to the Customer’s success metrics DESIGN OPERATIONALIZE REPRESENT
  17. 17. Confidential & Proprietary @underscorevc 17 Chart the path for the customer to achieve their objectives
  18. 18. Confidential & Proprietary @underscorevc Three key questions to answer 18 What are your Customer’s Objectives? • $Revenue • $Cost savings • %margin improvement What metrics will the Customer use to measure their success against these goals? What work must be done for the customer to fully realize their Objectives?
  19. 19. Confidential & Proprietary @underscorevc 19 Move to a Customer-centric operational model
  20. 20. Confidential & Proprietary @underscorevc 2020Confidential & Proprietary @underscorevc Traditional Departmental operational model 20 Marketing Sales Delivery Support R&D • $ Bookings • Win Rates • Funnel metrics • Margin % • Billability % • Deploy time • Ticket rates • Sev1 rates • Cogs margin % • Features • Bug rates • SLA % • $/Lead • $ CPM • Accept rate Corporate • $ ARR • $Bookings • Margin % Where is the Customer in this???
  21. 21. Confidential & Proprietary @underscorevc Aligning to the Customer Journey... Time @underscorevcConfidential & Proprietary 21 Value $LTV PROBLEM OBJECTIVE NEGATIVE TIME NEGATIVE VALUE OPTIMIZE IMPLEMENT TRAINING TEST ROLLOUT MEASURE PURCHASE ActivateSelect InnovateScale
  22. 22. Confidential & Proprietary @underscorevc Customer-centric Operational Model Time @underscorevcConfidential & Proprietary 22 Value OLD JOURNEY ENDED HERE • Implement • Train • Test • Migrate SUCCESSFUL ADOPTION, PROVE SOLUTION Activate • Demonstrate • Evaluate • Choose • Contract WHAT IS BEST SOLUTION TO MY PROBLEM? Select • Measure • Time • Release • Train IMPROVE & EXPAND VALUE Innovate • Measure • Optimize • Train • Rollout MAXIMIZE ROI & IMPACT Scale
  23. 23. Confidential & Proprietary @underscorevc Objectives What is the customer trying to achieve? Customer Success Metrics What are the top 3 metrics used by the Customer to measure Success? Company Metrics What are the top metrics used by Company to measure success? SELECT ACTIVATE SCALE INNOVATE Metrics 1. Metric 1 2. Metric 2 3. Metric 3 1. Metric 1 2. Metric 2 3. Metric 3 1. Metric 1 2. Metric 2 3. Metric 3 1. Metric 1 2. Metric 2 3. Metric 3 Owner Owner X Owner Y Owner Z Owner X Methods • Task 1 [DATE] • Task 2 [DATE] • Task 3 [DATE] 1. Task 1 [DATE] 2. Task 2 [DATE] 3. Task 3 [DATE] 1. Task 1 [DATE] 2. Task 2 [DATE] 3. Task 3 [DATE] 1. Task 1 [DATE] 2. Task 2 [DATE] 3. Task 3 [DATE] The SASI Customer Dashboard 23
  24. 24. Confidential & Proprietary @underscorevc SASI Dashboard, B2B Example 24 SELECT ACTIVATE SCALE INNOVATE Company metrics $ pipeline % funnel $ ACV Billability % service margin % Partner % GM % ARR g % $ backlog $ upsell Churn % $ pipeline Customer metrics $ TCO $ ROI case Payback $ deploy bug rates % TTM (days) GMV $ # UPT % Convert GMV $ ROI $ NPS Owner COO EVP Services CS SVP EVP Product Methods • Deployment checklist (Svcs) • Reference program (mktg) • Test Realms (Product) • bootcamp (CSM) • LINK 3P integrations (Product) • Deploy templates (Svcs) • WalkMe (product) • Web analytics (product) • Launch Bootcamp (CSM) • UX optimization (Product) • Migration tools (Svcs, Prod) • VoC (CSM)
  25. 25. Confidential & Proprietary @underscorevc 25 Establish a Customer Success function
  26. 26. Confidential & Proprietary @underscorevc Guidelines for a Customer Success function Structurally • Owner of the Customer Success program • Report to the CEO • Fully aligned to customer objectives, including compensation • Serve as Advocate for the customer 26 Customer Success is the job of every department, hold them accountable via SASI Responsibilities • Live with the customer, understand their business • Serve as primary PoC • Identify and propagate Best Practices • Identify friction points in the Customer Experience • Coordinate Voice of the Customer (VoC) activities
  27. 27. Confidential & Proprietary @underscorevc 27 Align your Business Model to the Customer’s success metrics
  28. 28. Confidential & Proprietary @underscorevc An Aligned Business Model is Win-Win 28 Build your business model around the best proxy for the value received by the Customer. Example Models: Confidential & Proprietary @underscorevc (Salesforce, Zendesk)(Google Ads)(Demandware, AMZN) (Airbnb, Lyft) Utilization Revenue/GMV $CPC Subscription Seats
  29. 29. Confidential & Proprietary @underscorevc In Summary 29 ● Digital disruption has changed the nature of our Customer relationships ● We need to adapt our Operational Models accordingly ● Customer Success metrics should lead, Business Metrics should follow Confidential & Proprietary @underscorevc As long as we stay attenuated to the Customer, we’ll be on the right track.
  30. 30. Thank you!

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