This document discusses shifting focus to customer outcomes and the role of customer success teams in driving outcomes. It notes that while customers care about their experience with vendors, they primarily care about achieving their expected outcomes. The document advocates that customer success teams should spend more time on adoption activities to increase customer loyalty and platform stickiness. It also notes that few companies systematically use customer usage data and that customer success must work to understand what customers value in order to establish trust and credibility to drive outcomes.

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Shifting to an Outcome-focused world
Peter Armaly
Vice President of Research, Customer Success

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What’s an Outcome?
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A product
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An experience
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A train… or… a better-functioning city
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Food… or… national security
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Customers care about having a
good experience with the vendor
but they care more about achieving
their expected Outcomes
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Share price rises, increase in valuation, program delivered
on time, health improves, life is more fun, etc
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A multitude of other business and personal goals
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Customers reward companies
with loyalty when their
Outcomes are achieved
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Otherwise, they punish them
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TSIA Technology and Services 50 - 2016

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Market Forces in Play
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Profitable
Legacy Model
XaaS 2.0
Commoditized
Legacy Model
XaaS 1.0
OEM Scenarios
Demand for New Consumption Models
Profitabilityof
CoreOffering

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State of The Industry
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10% 10%
60% 20%
OEM Scenarios
Demand for New Consumption Models
Profitabilityof
CoreOffering

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Year over year persistently high Churn rates
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So why aren’t CSMs spending more time on driving Adoption activities
which, in turn, drive platform stickiness and higher rates of loyalty?
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Many companies can monitor their customers’ solution
consumption
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But only a minority systematically use the data
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To move, you need to figure out what customers
value and deliver that before you can gain
trust and establish credibility
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19. You need Customer Success to drive this
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20. Unique Traits of Customer Success
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• Close proximity to customers
• Responsible for driving adoption and ensuring customers stay on the
platform
• Are proactive and curious
• Are process and data-driven
• Consider the customer holistically
• Are good herders
• Desire to help the customer grow in capability and ability to
accomplish more

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Hard to reconcile.
Only 25% of
respondents
employ predictive
analytics
capabilities
So few yet this is a
foundational
element of
profiling and of
Outcome
Engineering

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What next?
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The need to focus
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1.0 Organizational
Strategy and Financial
Performance
1.1 Strategy and Goals
1.2 Business
Performance
Management
2.0
Opportunity
Management
2.1 Account
Segmentation
2.2 Opportunity
Management: Renew
2.3 Opportunity
Management: Expand
3.0
Customer Success
Delivery
3.1 Customer
Onboarding
3.2 Value and Visioning
3.3 Enablement
3.4 Adoption Monitoring
3.5 Opportunity
Identification
4.0
Success Operations
4.1 Resource
Management
4.2 Talent
Management
4.3 Customer Analytics
4.4 Contract Analytics
4.5 Infrastructure
5.0
Success Engineering
5.1 Success Engineering
Function
5.2 Product Portfolio
Alignment
5.3 Solution
Development
5.4 Intellectual Asset
Management
5.5 Value Engineering
5.6 Product
Integration
6.0
Success Marketing
6.1 Success Marketing
Function
6.2 Strategic Pricing
6.3 Services Rollout
6.4 Customer
Experience

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Okay, so how do we drive Outcomes?
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25. Value realization journey mapping
Listen to your customers
Build profiles of customers based
on the now and to-be stages
Determine what’s systematically required to
move them to that next stage

26. The Value Realization Journey
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Stage 1 Stage 2 Stage 3 Stage 4
Value realized by the customer
TSIA – Outcome Engineering 2015

27. HOW is Outcome
Engineering Done
at Scale?
Right Framework
Right Outcomes
Right Tools
Right Customer

28. What is the target outcome?
What capabilities are required to achieve the outcome?
What is the financial impact?
What are the KPIs that predict financial impact will occur?
What technology improves the KPIs?
What practices are required to leverage the technology?
What roles required to run the technology and practices?

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Things to remember
• Outcomes depend on perspective
• Pressure on to precisely understand the customer and to
deliver those outcomes, at scale
• Customer Success is best positioned to drive this but
they need to begin to focus
• A structure and methodology is required to make it
happen
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