The document outlines Rincon Company's customer success strategy. It will focus on later stages of the customer lifecycle like engagement, adoption, and renewal. Key aspects include implementing a health score to measure adoption effectiveness, standardizing CLV and churn calculations, allocating 12% of ACV to customer retention costs, and developing tailored playbooks for different customer segments. Barriers customers may face and ways to address them at each stage are identified. The customer success team structure with roles for client services, support, and success managers is also presented.

1. CUSTOMER SUCCESS
STRATEGY
CUSTOMER SUCCESS
STRATEGY
Rincon Company
John Pittman, VP Customer Success
January 20, 2015

2. HIGH-LEVEL CUSTOMER SUCCESS STRATEGY
1. Maximize CLV 2. Segment & treat
customers by lifecycle
and persona
3. Build cross-
department customer
engagement plan

3. CUSTOMER SUCCESS LENS
Target
Customer
Influence
Direct Impact
Acquisition
Free Trial
Pipeline
Onboarding
Engagement
Adoption
Customer
Feedback
Renewal
Expansion
We will focus on the latter stages of the customer lifecycle.
And exert influence over the early stages.

4. CUSTOMER CHURN LEVERS
Onboarding
Engagement
Adoption
Customer
Feedback
Renewal
Expansion
We are focused on improvements to our onboarding, ongoing
engagement and renewal process.
Q2 Focus

5. Onboarding has been our focus.
Shift focus to deeper in the customer lifecycle.
Onboarding
GOING BEYOND ONBOARDING
Customer ROI more than onboarding time and
technical deployment.
What happens after onboarding (adoption) really
matters.
Adoption
Historically sales has “owned” renewal.
Customer success will now run renewals.
New process initiates renewals 90 days out
Renewal

6. ADOPTION METRIC = HEALTH SCORE
HIGHACTIVITY
GOOD HEALTH
Health vs. Activity
Customer Health scores measure effectiveness of our
adoption efforts at the portfolio and individual CSM level.
POOR HEALTH
LOWACTIVITY
Decrease unhealthy
customer count from
34% to 25%.

7. STRATEGIC METRICS
Our CLV Calculation
75% x $500 / 1% = $37,500
$20,000 / $2,000,000 = 1%
We Measure “Eligible Churn”
Gross
Margin %
Average
MRR per
account
Monthly
churn %
Revenue Lost
During Period
Total Revenue Due For
Renewal During Period
Many CLV & Churn calculation methods exist. The ones below
best fit our business model. We will standardize on these.

8. CAC & CRC MODEL
Customer Acquisition Cost
(CAC)
$1.00 to get $1.15
Customer Retention Cost
(CRC)
$0.12 to retain $1.00
Spend New ACV Spend ACV
Customer success will spend 12% of ACV to retain
existing customers.

9. CUSTOMER SEGMENTS
We have two distinct customer segments. We will develop
tailored customer success playbooks for each.
Self-service
Professional
Services
Professional
Edition
Enterprise
Edition

10. NEEDS ANALYSIS – PROFESSIONAL EDITION
Smaller professional edition customers need UI to drive
adoption, self-serve customer portal and marketing for
nurture.
Customer
Success
Product
Customer
Marketing
Automated Customer Nurture
Customer Success to drive content,
Marketing to own execution.
Product Experience
Customer Success & Product jointly
to interpret usage analytics for self-
serve. Product to implement UI
changes.
Customer Portal
Customer Success to refresh self-
serve content in customer portal.
1.
2.
3.

11. NEEDS ANALYSIS – PROFESSIONAL EDITION
Enterprise customers need high-touch treatment from
Customer Success and additional product features to fill gaps.
Customer
Success
Product
Customer
Marketing
Product Customization
Product team to dedicate share of
each 2-week sprint to enterprise
customer customizations.
Professional Services
Scale professional services staffing
levels to match targeted new
customer and up-sell volume.
NEEDS ANALYSIS – ENTERPRISE EDITION
1.
2.

12. CUSTOMERS’ SHOES – CRITICAL PATH
“Oriented”
[week 2]
• Understand functionality
• Comfortable with interface
• Internal plan composed
“Progress”
[week 6]
• % increase in visitors
• % increase in leads
• Lead-to-sales % increase
“Active”
[week 4]
• New leads flowing
• 1st workflow live
• 1st blog post live
Technical Set-up
[week 1]
• Blog migrated
• CRM integrated
• Website code deployed
“Initial Value”
[week 8]
• Build attribution report
• Complete month of stats
“Full Speed”
[week 10]
• Email campaign sent
• Lead nurture active
• Social monitoring active
“Achievement”
[weeks 12-52]
• % lead goal achieved
• % new sales goal achieved
• Level of effort required
Renewal
[week 52]

13. BARRIERS TO CUSTOMER SUCCESS
“Oriented”
Customer Challenges
• None
Our Issues
• Confusing reports module
“Progress”
Customer Challenges
• Showing slow growth
Our Issues
• None
“Active”
Customer Challenges
• Website Form tech skills
Our Issues
• None
Technical Set-up
Customer Challenges
• Subdomain takes time
Our Issues
• Blog migration is slow
“Initial Value”
Customer Challenges
• Alignment on attribution
Our Issues
• None
“Full Speed”
Customer Challenges
• Create enough content
Our Issues
• None
“Achievement”
Customer Challenges
• Missed quarterly lead goal
Our Issues
• None
Renewal
Customer Challenges
• None
Our Issues
• Waiting too long to renew

14. CUSTOMER SUCCESS TEAM
VP
Client Services
Sr. Consultant
Sr. Consultant
Sr. Consultant
Assoc. Consultant
Assoc. Consultant
Chief Customer Officer
Director,
Customer Support
VP
Customer Success
Sr. Support Manager
Support Manager
Customer Advocate
Customer Advocate
Director, Customer Success
Customer Success Manager
Customer Success Manager
Customer Success Engineer
• Focus on enterprise
customers
• Make feature/integration
requests of Product team
• Onboarding focus
• Handle all inbound product
support requests
• Interact with Client Services or
Customer Success as needed
• Monitor & take action on
customer health
• Manage customer portal
• Work with marketing on nurture
programs
• Work with Product on self-serve
features