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Mastering the Business of Customer
Success
Guy Nirpaz
Co-founder & CEO of Totango
Customer Success
is growing fast! 100
80
60
40
20
0
2012 2013 2014 2015
Source: Google Trends
Customer
Success is
maturing
We’ve learned a lot
and we’re here to share
Practical Handbook for
Customer Success
Leaders
Available on Amazon / iBook and
for Customer Success Summit 16 attendees
h...
The model is not
Hunting
Customer Success is
Farming!
Young Sapling
Needs close care to take
root
Growing Tree
Constant nurturing & care
is needed to ensure a
successful harvest
season
And Harvest
GrowingNew
z
In Renew/Upsell
Cancelled
SAVING
ACTIVITY
GrowingNew
The RECURRING nature of the
lifecycle determines the operating
model
z
In Renew/Upsell
Cancelled
SAVING
ACTIVITY
Customer Value
over
Customer Management
Source: The Customer Success Manifesto
New
ON BOARDING
ACTIVITY
Growing
NURTURING
...
Customer Success is a business
and It’s NOT Customer
Love
X
Customer Lifetime Value Calculation
+$10,000 / year
+$7,000 / year
-$1,500 / year
$5,500 / year
-$3,000 / year
Annual
Cont...
Lifetime Profit
YEAR 1
(4.5K)
NET PROFIT
YEAR 2
$1.0K
NET PROFIT
Lifetime Profit
20%
CHURN
14%
CHURN
10%
CHURN
5 YEAR LIFETIME
$28.5K
LIFETIME
NET PROFIT
$45.0K
LIFETIME
NET PROFIT
$17.5K...
FALLACIES
of CUSTOMER SUCCESS3
Customer Success is
NOT Customer Support
X
1
Customer Success
is NOT Project Managemen
X 2
Customer Success is
Not Pipeline Management
X
3
The Challenges: Prioritization and Focus
1. Which customers need your attention…and why?
2. Where to invest your limited r...
Portfolio Management
is The Model for
Customer Success
Management
Customer Portfolio
At Risk
In Harvest
Growing
New
Drivers
Results
Risks
ONBOARDING
QBR /
NURTURING
USAGE BASED
CAMPAIGNS
SAVING
PROGRAMS
ESCALATION
Drivers
PERIODIC EVENT-B...
Drivers
Results
Risks
ONBOARDING
PROGRAMS
ESCALATION/
SAVING PLAYS
Drivers
RETENTION
PROGRAMS
PERIODIC EVENT-BASED
SUCCESS...
Drivers
Results
Risks
ONBOARDING
PROGRAMS
ONBOARDING
PLAYS
ON-GOING
NURTURING
USAGE BASED
CAMPAIGNS
SAVING
PROGRAMS
ESCALA...
Farm Don’t Hunt and Manage your Grove
Summary
Farm Don’t Hunt and Manage your Grove
Summary
Run Customer Success like a Business
Farm Don’t Hunt and Manage your Grove
Summary
Portfolio Management is the Operating Mode
Run Customer Success like a Busin...
We’ve got a huge future ahead!
Profitable Customer Success Model
THANK YOU!
Mastering the Business of Customer Success
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Mastering the Business of Customer Success

Customer Success is maturing. Customers are like trees in recurring revenue business. The Customer Success function should run as a business, and the operating model is of customer portfolio management to drive customer success

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Mastering the Business of Customer Success

  1. 1. Mastering the Business of Customer Success Guy Nirpaz Co-founder & CEO of Totango
  2. 2. Customer Success is growing fast! 100 80 60 40 20 0 2012 2013 2014 2015 Source: Google Trends
  3. 3. Customer Success is maturing
  4. 4. We’ve learned a lot and we’re here to share
  5. 5. Practical Handbook for Customer Success Leaders Available on Amazon / iBook and for Customer Success Summit 16 attendees http://www.farmdonthunt.com
  6. 6. The model is not Hunting
  7. 7. Customer Success is Farming!
  8. 8. Young Sapling Needs close care to take root
  9. 9. Growing Tree Constant nurturing & care is needed to ensure a successful harvest season
  10. 10. And Harvest
  11. 11. GrowingNew z In Renew/Upsell Cancelled SAVING ACTIVITY
  12. 12. GrowingNew The RECURRING nature of the lifecycle determines the operating model z In Renew/Upsell Cancelled SAVING ACTIVITY
  13. 13. Customer Value over Customer Management Source: The Customer Success Manifesto New ON BOARDING ACTIVITY Growing NURTURING ACTIVITY In Renew/Upsell HARVESTING ACTIVITY Cancelled SAVING ACTIVITY DRIVERS OUTCOMES
  14. 14. Customer Success is a business and It’s NOT Customer Love X
  15. 15. Customer Lifetime Value Calculation +$10,000 / year +$7,000 / year -$1,500 / year $5,500 / year -$3,000 / year Annual Contract Value Cost to Deliver Service Gross Margin Customer Retention Cost Annual Profit
  16. 16. Lifetime Profit YEAR 1 (4.5K) NET PROFIT YEAR 2 $1.0K NET PROFIT
  17. 17. Lifetime Profit 20% CHURN 14% CHURN 10% CHURN 5 YEAR LIFETIME $28.5K LIFETIME NET PROFIT $45.0K LIFETIME NET PROFIT $17.5K LIFETIME NET PROFIT 7 YEAR LIFETIME 10 YEAR LIFETIME
  18. 18. FALLACIES of CUSTOMER SUCCESS3
  19. 19. Customer Success is NOT Customer Support X 1
  20. 20. Customer Success is NOT Project Managemen X 2
  21. 21. Customer Success is Not Pipeline Management X 3
  22. 22. The Challenges: Prioritization and Focus 1. Which customers need your attention…and why? 2. Where to invest your limited resources for best outcomes?
  23. 23. Portfolio Management is The Model for Customer Success Management
  24. 24. Customer Portfolio At Risk In Harvest Growing New
  25. 25. Drivers Results Risks ONBOARDING QBR / NURTURING USAGE BASED CAMPAIGNS SAVING PROGRAMS ESCALATION Drivers PERIODIC EVENT-BASED SUCCESS PROGRAMS & PLAYS At Risk In Harvest Growing New The Engagement
  26. 26. Drivers Results Risks ONBOARDING PROGRAMS ESCALATION/ SAVING PLAYS Drivers RETENTION PROGRAMS PERIODIC EVENT-BASED SUCCESS PROGRAMS & PLAYS At Risk In Harvest Growing New Engagement Model of Young Customer Success Organization
  27. 27. Drivers Results Risks ONBOARDING PROGRAMS ONBOARDING PLAYS ON-GOING NURTURING USAGE BASED CAMPAIGNS SAVING PROGRAMS ESCALATION/ SAVING PLAYS PLAYS Drivers RETENTION PROGRAMS PERIODIC EVENT-BASED SUCCESS PROGRAMS & PLAYS At Risk In Harvest Growing New Churn -------------------- Retention -------------------- Upsell Save Rate -------------------- Active Escalations METRICS Time to Value -------------------- Satisfaction Results -------------------- Adoption -------------------- Utilization The Portfolio
  28. 28. Farm Don’t Hunt and Manage your Grove Summary
  29. 29. Farm Don’t Hunt and Manage your Grove Summary Run Customer Success like a Business
  30. 30. Farm Don’t Hunt and Manage your Grove Summary Portfolio Management is the Operating Mode Run Customer Success like a Business
  31. 31. We’ve got a huge future ahead! Profitable Customer Success Model THANK YOU!

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