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The Ultimate Growth Engine:
Using Customer Success to
Expand Revenue, Increase Profit,
and Improve the Value of Your
Company
Lincoln Murphy @lincolnmurphy
lincoln@sixteenventures.com
Stay Longer
Buy More
Advocate for Us
@lincolnmurphy
Desired Outcome
Customer Success is when customers achieve their
interactions
through with your
companytheir 	
“	
”	-  Lin...
Customer Success is NOT…
•  Software
•  Just a Department
•  Customer Support
•  Account
Management
•  Churn Mitigation
• ...
Customer Success
is a GROWTH
ENGINE
Customer
SUCCESS-
driven Growth
As customers
SUCCEED and
EVOLVE…
…their relationship
with us should
EVOLVE and GROW
A contract
does not equal
SUCCESS
ARBITRARY

Time Box
@lincolnmurphy
RENEWAL &
EXPANSION are part
of the Customer’s
SUCCESS
@lincolnmurphy
Year 1
100%
Customer Lifetime Value
@lincolnmurphy
Year 1 Year 2 Year 3 Year 4 Year 5
80%
20%
Customer Lifetime Value
@lincolnmurphy
Year 1 Year 2 Year 3 Year 4 Year 5
> 95%
< 5%
Customer Lifetime Value
@lincolnmurphy
Customer Lifetime Value
Year 1 Year 2 Year 3 Year 4 Year 5
> 98%
< 2%
Year 6
@lincolnmurphy
Then	why	do	you	leave	those	four	things	to	chance?
In	fact,	there’s	a	really	strong	possibility	that	you	aren’t	just	not	doing	anything	to	make	sure	t
Resource Allocation
Year 1 Year 2 Year 3 Year 4 Year 5
< 2%
> 98%
Year 6
@lincolnmurphy
Year 1 Year 2 Year 3 Year 4 Year 5
80%
20%
Customer Lifetime Value
@lincolnmurphy
Year 1
100%
Customer Lifetime Value
@lincolnmurphy
Stay Longer
Buy More
Advocate for Us
@lincolnmurphy
Customer Success
Directly IMPACTS
Company
VALUATION
Company Valuation Calculation
Revenue x Multiplier = Value
Company Valuation Calculation
Revenue x Multiplier = Value
o There’s
more!
Revenue x Multiplier = Value
o Customer Lifetime Value (LTV)
o Customer Acquisition Cost (CAC)
Efficiency
o Net Revenue Rete...
Desired Outcome
Customer Success is when customers achieve their
interactions
through with your
companytheir 	
“	
”	-  Lin...
Required	
Outcome	
Appropriate	
Experience	
Desired Outcome
WHAT your
customer
needs to
achieve
HOW they
need to
achieve i...
Customer	
CharacterisJcs	
Method	
Customer	
(segment)	
Desired Outcome
@lincolnmurphy
Required	
Outcome	
Appropriate	
Expe...
CUSTOMER
SEGMENTS are
determined by
APPROPRIATE
EXPERIENCE (AX)
AX can be your
DISRUPTIVE
DIFFERENTIATOR
AX is the key to
SCALING Customer
Success
CSM OPERATIONS

must be determined by
DESIRED OUTCOME
Customer Success Management
is the process of moving the customer
toward their ever-evolving Desired
Outcome.
“	
”	 -  Lin...
Customer Success Management INCLUDES…
•  Logical
Segmentation
•  Orchestration
•  Intervention
•  Measurement
•  Expansion...
Desired Outcome
Customer Success is when customers achieve their
interactions
through with your
companytheir 	
“	
”	-  Lin...
Interactions include…
•  Implementation
•  Onboarding
•  Training
•  Integration
•  Help
•  Upsell
•  Renewal
•  Support
•...
Stay Longer
Buy More
Advocate for Us
@lincolnmurphy
Acquire
customers with

SUCCESS
POTENTIAL
@lincolnmurphy	
Technical Fit
Functional Fit
Competence Fit
Success Potential is…
Experience Fit
Cultural Fit
Resource Fit
It’s Not

SUCCESS
GUARANTEED
@lincolnmurphy
@lincolnmurphy	
Good-fit Customers
Not ready at all! Ready to go!
But	none	of	that	maOers	if	you’re	bringing	in	bad-fit	customers.
Churn is the
SYMPTOM of an
Underlying Disease
@lincolnmurphy
Stay Longer
Buy More
Advocate for Us
@lincolnmurphy
Customer.
SUCCESS.
When your
CUSTOMERS
Succeed...
YOU
Succeed!
Lincoln Murphy
@lincolnmurphy
lincoln@sixteenventures.com
http://sixteenventures.com
Lincoln Murphy - Endeavor - August 2017 - The Ultimate Growth Engine: Using Customer Success to Expand Revenue, Increase P...
Lincoln Murphy - Endeavor - August 2017 - The Ultimate Growth Engine: Using Customer Success to Expand Revenue, Increase P...
Lincoln Murphy - Endeavor - August 2017 - The Ultimate Growth Engine: Using Customer Success to Expand Revenue, Increase P...
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Lincoln Murphy - Endeavor - August 2017 - The Ultimate Growth Engine: Using Customer Success to Expand Revenue, Increase Profit, and Improve the Value of Your Company

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On August 16, 2017, Lincoln Murphy did a webinar for Endeavor and presented these slides, showcasing The Ultimate Growth Engine: Using Customer Success to Expand Revenue, Increase Profit, and Improve the Value of Your Company.

Published in: Leadership & Management
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Lincoln Murphy - Endeavor - August 2017 - The Ultimate Growth Engine: Using Customer Success to Expand Revenue, Increase Profit, and Improve the Value of Your Company

  1. 1. The Ultimate Growth Engine: Using Customer Success to Expand Revenue, Increase Profit, and Improve the Value of Your Company
  2. 2. Lincoln Murphy @lincolnmurphy lincoln@sixteenventures.com
  3. 3. Stay Longer Buy More Advocate for Us @lincolnmurphy
  4. 4. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  5. 5. Customer Success is NOT… •  Software •  Just a Department •  Customer Support •  Account Management •  Churn Mitigation •  Saving Customers •  “Checking in" with customers •  Happiness or Delight @lincolnmurphy
  6. 6. Customer Success is a GROWTH ENGINE
  7. 7. Customer SUCCESS- driven Growth
  8. 8. As customers SUCCEED and EVOLVE…
  9. 9. …their relationship with us should EVOLVE and GROW
  10. 10. A contract does not equal SUCCESS
  11. 11. ARBITRARY
 Time Box @lincolnmurphy
  12. 12. RENEWAL & EXPANSION are part of the Customer’s SUCCESS @lincolnmurphy
  13. 13. Year 1 100% Customer Lifetime Value @lincolnmurphy
  14. 14. Year 1 Year 2 Year 3 Year 4 Year 5 80% 20% Customer Lifetime Value @lincolnmurphy
  15. 15. Year 1 Year 2 Year 3 Year 4 Year 5 > 95% < 5% Customer Lifetime Value @lincolnmurphy
  16. 16. Customer Lifetime Value Year 1 Year 2 Year 3 Year 4 Year 5 > 98% < 2% Year 6 @lincolnmurphy
  17. 17. Then why do you leave those four things to chance?
  18. 18. In fact, there’s a really strong possibility that you aren’t just not doing anything to make sure t
  19. 19. Resource Allocation Year 1 Year 2 Year 3 Year 4 Year 5 < 2% > 98% Year 6 @lincolnmurphy
  20. 20. Year 1 Year 2 Year 3 Year 4 Year 5 80% 20% Customer Lifetime Value @lincolnmurphy
  21. 21. Year 1 100% Customer Lifetime Value @lincolnmurphy
  22. 22. Stay Longer Buy More Advocate for Us @lincolnmurphy
  23. 23. Customer Success Directly IMPACTS Company VALUATION
  24. 24. Company Valuation Calculation Revenue x Multiplier = Value
  25. 25. Company Valuation Calculation Revenue x Multiplier = Value o There’s more!
  26. 26. Revenue x Multiplier = Value o Customer Lifetime Value (LTV) o Customer Acquisition Cost (CAC) Efficiency o Net Revenue Retention (NRR) o Total Addressable Market (TAM) o Talent Acquisition o There’s more! @lincolnmurphy Company Valuation Calculation
  27. 27. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  28. 28. Required Outcome Appropriate Experience Desired Outcome WHAT your customer needs to achieve HOW they need to achieve it@lincolnmurphy
  29. 29. Customer CharacterisJcs Method Customer (segment) Desired Outcome @lincolnmurphy Required Outcome Appropriate Experience
  30. 30. CUSTOMER SEGMENTS are determined by APPROPRIATE EXPERIENCE (AX)
  31. 31. AX can be your DISRUPTIVE DIFFERENTIATOR
  32. 32. AX is the key to SCALING Customer Success
  33. 33. CSM OPERATIONS
 must be determined by DESIRED OUTCOME
  34. 34. Customer Success Management is the process of moving the customer toward their ever-evolving Desired Outcome. “ ” -  Lincoln Murphy @lincolnmurphy
  35. 35. Customer Success Management INCLUDES… •  Logical Segmentation •  Orchestration •  Intervention •  Measurement •  Expansion (& Renewal) •  Communication •  Instrumentation •  Operationalization @lincolnmurphy
  36. 36. Desired Outcome Customer Success is when customers achieve their interactions through with your companytheir “ ” -  Lincoln Murphy @lincolnmurphy
  37. 37. Interactions include… •  Implementation •  Onboarding •  Training •  Integration •  Help •  Upsell •  Renewal •  Support •  Knowledge Base •  Product Use @lincolnmurphy
  38. 38. Stay Longer Buy More Advocate for Us @lincolnmurphy
  39. 39. Acquire customers with
 SUCCESS POTENTIAL
  40. 40. @lincolnmurphy Technical Fit Functional Fit Competence Fit Success Potential is… Experience Fit Cultural Fit Resource Fit
  41. 41. It’s Not
 SUCCESS GUARANTEED @lincolnmurphy
  42. 42. @lincolnmurphy Good-fit Customers Not ready at all! Ready to go!
  43. 43. But none of that maOers if you’re bringing in bad-fit customers.
  44. 44. Churn is the SYMPTOM of an Underlying Disease @lincolnmurphy
  45. 45. Stay Longer Buy More Advocate for Us @lincolnmurphy
  46. 46. Customer. SUCCESS.
  47. 47. When your CUSTOMERS Succeed...
  48. 48. YOU Succeed!
  49. 49. Lincoln Murphy @lincolnmurphy lincoln@sixteenventures.com http://sixteenventures.com

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