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Developing the Ultimate Customer Success Strategy - Storm Ventures

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Customer Success has evolved rapidly from a way to simply make customers “happy” or reduce churn to driving a true growth engine for the business. There’s simply no more efficient – and done correctly, rapid, exponential, and sustainable – growth than growth within and from your existing customer base.
As customers succeed and evolve, their relationship with you should evolve and grow as well; but you have to ensure that happens. That’s Customer Success-driven Growth.
In this workshop we will cover:
- how the evolution of Customer Success should change your strategy
- what the 8 elements of Customer Success Management are and why they matter
- what these changes will look like inside your company (org structure, compensation models, etc)
- the keys to making expansion within - and from - your customer base work in a way that is customer-positive at scale
This will be interactive, so bring your questions; we don't want you to leave with any questions you came with, but you'll definitely leave with a lot of new ones!
Speaker: Lincoln Murphy
Lincoln Murphy is a world-renowned Growth Architect, Consultant, Author, and Keynote Speaker, and one of the earliest evangelists for Customer Success. As founder of Sixteen Ventures, he’s used Customer Success to drive growth across the entire customer lifecycle for more than 400 SaaS and enterprise software companies around the world.

Published in: Business

Developing the Ultimate Customer Success Strategy - Storm Ventures

  1. 1. Developing The Ultimate Customer Success Strategy Hello, my name is Lincoln Murphy I’m excited to be presenting to you today! @LincolnMurphy
  2. 2. Stay longer Buy More Expand Internally Advocate Externally @lincolnmurphy
  3. 3. @lincolnmurphy
  4. 4. Make your CUSTOMERS
 powerful!
  5. 5. They’ll make YOU powerful!
  6. 6. HOW will they make you powerful?
  7. 7. Stay longer Buy More Expand Internally Advocate Externally @lincolnmurphy
  8. 8. This Directly Impacts Company VALUATION
  9. 9. Revenue x Multiplier = Value Company Valuation Calculation
  10. 10. Revenue x Multiplier = Value o There’s more! Company Valuation Calculation
  11. 11. 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 Calculation
  12. 12. Year 1 100% Customer Lifetime Value @lincolnmurphy
  13. 13. Year 1 Year 2 Year 3 Year 4 Year 5 80% 20% Customer Lifetime Value @lincolnmurphy
  14. 14. Year 1 Year 2 Year 3 Year 4 Year 5 > 95% < 5% Customer Lifetime Value @lincolnmurphy
  15. 15. Customer Lifetime Value Year 1 Year 2 Year 3 Year 4 Year 5 > 98% < 2% Year 6 @lincolnmurphy
  16. 16. Resource Allocation Year 1 Year 2 Year 3 Year 4 Year 5 < 2% > 98% Year 6 @lincolnmurphy
  17. 17. How do you make your customers POWERFUL?
  18. 18. By making them SUCCESSFUL
  19. 19. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  20. 20. Customer Success is NOT... •  Just a Department •  Only Account Management •  Customer Support •  Churn Mitigation •  Saving Customers •  “Checking in" with customers •  Customer hand- holding •  About Happiness or Delight @lincolnmurphy
  21. 21. Customer Success is a GROWTH ENGINE
  22. 22. Customer SUCCESS- driven Growth
  23. 23. As customers SUCCEED and EVOLVE…
  24. 24. …their relationship with us should EVOLVE and GROW
  25. 25. RENEWAL & EXPANSION are part of the Customer’s SUCCESS
  26. 26. Customer Success Management is the process of moving the customer toward their ever-evolving Desired Outcome. “ ” -  Lincoln Murphy @lincolnmurphy
  27. 27. Customer Success Management is... •  Segmentation •  Orchestration •  Intervention •  Measurement •  Expansion •  Communication •  Instrumentation •  Operationalization
  28. 28. Customer Success Management @lincolnmurphy
  29. 29. Grow BECAUSE of your effort, not 
 IN SPITE of it
  30. 30. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  31. 31. Interactions are… •  Intervention – Proactive – Reactive •  Transactional •  Self-service @lincolnmurphy
  32. 32. Interactions include… •  Implementation •  Onboarding •  Training •  Integration •  Help •  Upsell •  Renewal •  Support •  Knowledge Base •  Product Use @lincolnmurphy
  33. 33. Interactions Start EARLY
  34. 34. “The seeds ! of churn are ! planted early” ! – Lincoln Murphy! @lincolnmurphy!
  35. 35. Avoid BAD FIT Customers
  36. 36. Who Feels the ACUTE Pain of Bad-fit Customers? •  Sales •  Implementation •  Product •  Marketing •  Support •  Account Management •  Customer Success Management •  Your Customer! @lincolnmurphy
  37. 37. Acquire customers with
 SUCCESS POTENTIAL
  38. 38. @lincolnmurphy Technical Fit Functional Fit Competence Fit Success Potential is… Experience Fit Cultural Fit
  39. 39. Sales Marketing Customer Success Operationalized Enrichment @lincolnmurphy
  40. 40. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  41. 41. Required Outcome Appropriate Experience Desired Outcome WHAT your customer needs to achieve HOW they need to achieve it@lincolnmurphy
  42. 42. Shared Customer Characteris:cs Method Customer Segment Desired Outcome @lincolnmurphy Required Outcome Appropriate Experience
  43. 43. Air Travel Desired Outcome – Air Travel @lincolnmurphy Point A è B Safely & Quickly
  44. 44. Need to work, no :me to eat Air Travel Desired Outcome – Air Travel @lincolnmurphy Point A è B Safely & Quickly Assigned sea:ng, WiFi, Food service, leg room Business Traveler
  45. 45. Save money, enjoy des:na:on Air Travel Desired Outcome – Air Travel @lincolnmurphy Point A è B Safely & Quickly Cheap fares, snacks & drinks Family Going on Vaca:on
  46. 46. Email Marke:ng Desired Outcome – Email Marketing @lincolnmurphy More people to my event
  47. 47. DIY, no $$$, tech-first Email Marke:ng @lincolnmurphy More people to my event API, self-service, Slack support channel Early- stage Startup Desired Outcome – Email Marketing
  48. 48. Must work, has $$$, less- tech Email marke:ng @lincolnmurphy More people to my event GUI, 24/7 Support, 3/yr contract F500 Dept Desired Outcome – Email Marketing
  49. 49. DESIRED OUTCOME is the key to SCALING Customer Success
  50. 50. COVERAGE LEVELS and RESOURCES are determined by DESIRED OUTCOME
  51. 51. Logically SEGMENT
 Customers
  52. 52. Typical Customer Segmentation… @lincolnmurphy
  53. 53. Typical Customer Segmentation… @lincolnmurphy
  54. 54. Appropriate Experience Segmentation… @lincolnmurphy
  55. 55. Multiple Required Outcome Segmentation… @lincolnmurphy
  56. 56. Cohort Segmentation… @lincolnmurphy
  57. 57. Churn is the SYMPTOM of an Underlying Disease
  58. 58. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  59. 59. 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
  60. 60. 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
  61. 61. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  62. 62. Customer. SUCCESS.
  63. 63. When your CUSTOMERS Succeed...
  64. 64. YOU Succeed!
  65. 65. Thank You!
 @lincolnmurphy lincoln@lincolnmurphy.com
  66. 66. Awesome! Thanks for your attention. Learn more about me at http://sixteenventures.com And contact me via lincoln@lincolnmurphy.com @LincolnMurphy Developing The Ultimate Customer Success Strategy

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