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IB9CC0: Introduction to
Consulting
Customer Success. The biggest
consulting industry you’ve never
heard of.
Léon Benjamin
Professional Services Director, Bluescape
Acknowledgments: Bluescape (USA), Adoptt Ltd (UK)
Léon Benjamin
Currently Professional Services Director for
a US visual collaboration software vendor,
Blusescape
Co-founder of two successful workplace
transformation businesses providing
professional services to a wide variety of
organisations to change the way people
work. Clients served include; Virgin Media,
Boston Consulting Group, Cisco, Tesco,
AstraZenca and Ralph Lauren.
Recently for Ernst & Young provided
excitement, fresh thinking, advice and
guidance on a wide range of adoption
challenges related to its global deployment
of a Modern Workplace platform.
Previously spent 25 years designing and delivering
complex IT transformation programmes, managing
business change and agile software development for
blue chip companies, counting Accenture, Union
Bank of Switzerland, Dresdner Kleinwort Benson,
Barclays Capital, Going Places, Opodo, Tesco, Argos,
Carphone Warehouse, British Airways and Aviva.
Published author.
Wrote a book called
Winning by Sharing in
2005 on the future of
work accurately
predicting workplace
trends and themes in
use today.
CONTACT
leon.Benjamin@bluescape.com
LinkedIn: linkedin.com/in
/leonbenjamin/
What’s the story?
• The shift to the consumption of business applications in the cloud has
created the need for services that ensure they are full adopted by
customers and their employees
• In the near future almost all business apps will be hosted in the cloud
• Customer Success (CS) is a series of consulting motions with the goal of
achieving high adoption of a vendor’s cloud app
CUSTOMER SUCCESS
USED TO BE OPTIONAL
BUT NOW IT’S PRETTY
MUCH THE WHOLE GAME
CUSTOMER SUCCESS IS
THE BIGGEST
CONSULTING INDUSTRY
YOU’VE NEVER HEARD OF
• Cloud apps are sold on a ‘pay
as you use’ model that makes
it attractive to buyers because
they only pay for active users
(per month). Also called:
› Recurring offers
› Subscription or annuity
pricing
• 70%-80% of a SAAS vendor’s
revenue is derived from customer
renewal of their software licences
• Customers don’t renew unless most
of their licences are in active use
• Renewals rely upon high levels of
adoption
Cloud based software consumption drives
professional services revenues
*Source: Gartner
Cloud spending 2018*
Cloud spending 2022*
Total spend by 2020
19%
28%
$2.4
trillion
Cloud shift refers to the movement of IT
spending from traditional (non-cloud)
markets to new, public cloud alternatives
By 2022, cloud shift across key enterprise
IT markets will increase to 28%
(up from 19% in 2018)
By 2020 new technology investments are
expected to reach $2.4 trn.
Source: Global Center for Digital Business Transformation,
a IMD/Cisco initiative
Cloud Market Growth Is Stunning
Source: Cisco, 2016
Premise UC
$8.7B
-2% CAGR
Cloud UC/PBX
$27.7B
10.5% CAGR
The market for non-cloud
unified communications is in
decline
Cloud unified communications
market is growing by over 10%
annually
To compete and stay relevant
vendors and their partners have
been transforming their
business to anticipate the shift
to subscription based pricing for
the last six years
What is adoption?
Why do we need it?
SAAS applications need organisation wide
changes in behaviour to achieve digital business
transformation especially when voluntary,
discretionary effort is required from employees
How do we get high adoption?
Delivery through the lens of achieving business
outcomes and treating change as a continuum,
rather than a single event
Adoption is the behaviour change effort
required to create high levels of use to
ensure the benefits of investments in SAAS
technologies are realised.
of digital transformation
projects fail because of lack of
integrated change management
84%
Everyone gets value from high adoption
Customer
gets ROI from high levels of adoption e.g.
▪ More sales
▪ Higher engagement
▪ Reduced property foot print
▪ Higher productivity
Partner
gets increased licence revenue,
expand opportunities and high
rates of renewals
Vendor
gets greater market share, higher market
capitalisation, share price growth
▪ High customer retention
▪ Attractive to partners
▪ High partner retention
▪ More sales through the channel
Vendor
Partner
Customer
Adoption
Employees
get better work experiences,
more efficient business
processes and opportunity to
improve their work/life
balance,
What CS/CX means for sales
Amount of effort & traditional strengths of technology providers
Land Adopt Expand Renew
Adoption must be sold
here…..
…... so Cross Sell & Renewal is Effortless
$ 1.07 to acquire $1 of
revenue from new
customer
$0.18 $0.12
Land Adopt Expand Renew
“Technology Service Providers are starting to
get it. Doing [adoption] the right way doesn’t
get you 5% growth, it gets you 200% growth!”
J.B. Wood - CEO, Technology Services Industry Association (TSIA)
“A customer is 4 times more likely
to defect to a competitor if the
problem is service related rather
than price or product related.”
- Bain & Company
“Wall Street loves subscription
based revenue models”
- Anon
“68% of customers leave because
they think you don’t care about
them.”
- Rockefeller Corporation, 18 Customer
Facts Marketers Can’t Ignore
A Shift To Customer Lifetime Value Model
Old transactional
model has evolved…
…to a customer
lifetime value model
Customer Success
Software Ecosystem
A new category of customer success software has emerged to
help vendors manage their customer lifecycle has become an
industry in its own right. Market leader, Gainsight recently
acquired for $1.1B (700 employees).
From high touch to no touch. Digital adoption platforms are
emerging to automate stages of the adoption and customer
success lifecycle with ‘in app’ contextual learning.
Adoption Automation Software Software
CRM Software
Customer value and outcomes
Cisco case study landscape
Reduced Property Footprint
Process Imp.
Faster comms.
Reduced absence
Intangible
Profit/
Revenue
Operational
Savings
Virgin Media.
Flexible Working Pilot with
Cisco WebEx & WebEx Social
→ Employee engagement
scores jumped six points.
Largest jump ever
recorded.
Source: Thomson Reuters &
Elisa Nardi, Chief People
Officer (Virgin Media)
Virgin Media
Workplace Transformation
Program.
WebEx deployment to 5,000
knowledge workers reduced T&E
expense 20% YOY
Source: Colin Miles, Director of IT
Services (Virgin Media)
Reduced Travel Expense
Faster Info Search
Faster People Search
Peer-Peer Support
Reduced Email
Faster time to market
Innovation
Customer Satisfaction
Higher Productivity
Increased Sales
Nationwide
Cisco Video Collaboration
→ Boosted mortgage sales
performance by 66 percent
→ Improved customer net
satisfaction by 70 percent
→ Cut costs of sales by 66 percent
Source: Cisco & Nationwide Building
Society
Employee Engagement
Flexible Working
Wellness
Culture Change
Vodafone
20% savings in travel expense and £400m
saved over 10 years. In Cisco TP .
Employees avoided 100 trips per month
per location, saved 200k hours of employee
time over 3 years
Source: Factor Five: Transforming the
Global Economy (book)
Lloyds Banking Group
Cisco Video Collaboration
→ 95% of customers said they got a better experience
→ 33% of mortgage appointments using video
→ Increase sales and higher conversion (figure not stated)
Source: LBG Press Release
The shift to fee paying Customer Success
The age of free
will be over soon
75% of SAAS vendors
consider CS business
critical
Consulting motions
Source: Deloitte.
Enterprise Customer
Success Outlook, 2009
ROI
91%
Shift to outcome based sales & customer success
BUSINESS OUTCOMES
The difference between free and fee
SERVICES
• Activation
• User training
• Self-learning content
• Train the trainer
• Playbooks
• Discovery
• Programme management
• Service delivery
• Communications
• On demand coaching
• In life support
• Product upgrades
• Fresh content
MONTHLY
ACTIVE USERS
Customer Led Adoption Vendor Led Adoption Network Effects
Customer Success Manager
0% 20%
FREE
60%
CHANGE MANAGEMENT
FEE
100%
Customer Success Manager
FREE
Customer Success Methodology Example
Careers in Customer Success
Leadership of All
CX/CS Resources in multiple
theatres
Sets CS vision, strategy, methodology
and execution
Understands
Customer Stratgic Goals
Realizes Business Value From Customer
Engagements
Customer Success
Executive (VP)
Renewals
Manager
Partners with Sales & CSMs on
Renewal Opportunities
Manages Recurring
Revenue
Owns Deal Strategy
for Renewals
Drives Renewal
Execution Across
Products and Services
Customer Success
Manager (CSM)
Executes CS adoption motions and
manages the in-life relationship with
customers
Possesses Deep
Product Knowledge
Accelerates Usage
and Adoption
Delivers Training & Coaching
Partner Success
Manager (PSM)
Drives Scale
Programs in Theater
Builds Local Partner Communities and
Practices
Manages and Delivers
CS Capability To partners
Manages Relationships With Partners
• Median Base Salary: $88,500
• Job Openings (YoY Growth): 2,000+ (80%)
• Career Advancement Score (out of 10): 9
• Top Skills: Customer Relationship
Management, Salesforce, Software-as-a-
service, Customer Satisfaction, Cloud
Computing
CUSTOMER
Success Manager
CS & CX roles are in high demand
4.2M
Jobs 2021 2019
5th/6th
place
Thank you.
Room for questions?

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Customer Success. The biggest consulting industry you’ve never heard of.

  • 1. IB9CC0: Introduction to Consulting Customer Success. The biggest consulting industry you’ve never heard of. Léon Benjamin Professional Services Director, Bluescape Acknowledgments: Bluescape (USA), Adoptt Ltd (UK)
  • 2. Léon Benjamin Currently Professional Services Director for a US visual collaboration software vendor, Blusescape Co-founder of two successful workplace transformation businesses providing professional services to a wide variety of organisations to change the way people work. Clients served include; Virgin Media, Boston Consulting Group, Cisco, Tesco, AstraZenca and Ralph Lauren. Recently for Ernst & Young provided excitement, fresh thinking, advice and guidance on a wide range of adoption challenges related to its global deployment of a Modern Workplace platform. Previously spent 25 years designing and delivering complex IT transformation programmes, managing business change and agile software development for blue chip companies, counting Accenture, Union Bank of Switzerland, Dresdner Kleinwort Benson, Barclays Capital, Going Places, Opodo, Tesco, Argos, Carphone Warehouse, British Airways and Aviva. Published author. Wrote a book called Winning by Sharing in 2005 on the future of work accurately predicting workplace trends and themes in use today. CONTACT leon.Benjamin@bluescape.com LinkedIn: linkedin.com/in /leonbenjamin/
  • 3. What’s the story? • The shift to the consumption of business applications in the cloud has created the need for services that ensure they are full adopted by customers and their employees • In the near future almost all business apps will be hosted in the cloud • Customer Success (CS) is a series of consulting motions with the goal of achieving high adoption of a vendor’s cloud app CUSTOMER SUCCESS USED TO BE OPTIONAL BUT NOW IT’S PRETTY MUCH THE WHOLE GAME CUSTOMER SUCCESS IS THE BIGGEST CONSULTING INDUSTRY YOU’VE NEVER HEARD OF • Cloud apps are sold on a ‘pay as you use’ model that makes it attractive to buyers because they only pay for active users (per month). Also called: › Recurring offers › Subscription or annuity pricing • 70%-80% of a SAAS vendor’s revenue is derived from customer renewal of their software licences • Customers don’t renew unless most of their licences are in active use • Renewals rely upon high levels of adoption
  • 4. Cloud based software consumption drives professional services revenues *Source: Gartner Cloud spending 2018* Cloud spending 2022* Total spend by 2020 19% 28% $2.4 trillion Cloud shift refers to the movement of IT spending from traditional (non-cloud) markets to new, public cloud alternatives By 2022, cloud shift across key enterprise IT markets will increase to 28% (up from 19% in 2018) By 2020 new technology investments are expected to reach $2.4 trn. Source: Global Center for Digital Business Transformation, a IMD/Cisco initiative
  • 5. Cloud Market Growth Is Stunning Source: Cisco, 2016 Premise UC $8.7B -2% CAGR Cloud UC/PBX $27.7B 10.5% CAGR The market for non-cloud unified communications is in decline Cloud unified communications market is growing by over 10% annually To compete and stay relevant vendors and their partners have been transforming their business to anticipate the shift to subscription based pricing for the last six years
  • 6. What is adoption? Why do we need it? SAAS applications need organisation wide changes in behaviour to achieve digital business transformation especially when voluntary, discretionary effort is required from employees How do we get high adoption? Delivery through the lens of achieving business outcomes and treating change as a continuum, rather than a single event Adoption is the behaviour change effort required to create high levels of use to ensure the benefits of investments in SAAS technologies are realised. of digital transformation projects fail because of lack of integrated change management 84%
  • 7. Everyone gets value from high adoption Customer gets ROI from high levels of adoption e.g. ▪ More sales ▪ Higher engagement ▪ Reduced property foot print ▪ Higher productivity Partner gets increased licence revenue, expand opportunities and high rates of renewals Vendor gets greater market share, higher market capitalisation, share price growth ▪ High customer retention ▪ Attractive to partners ▪ High partner retention ▪ More sales through the channel Vendor Partner Customer Adoption Employees get better work experiences, more efficient business processes and opportunity to improve their work/life balance,
  • 8. What CS/CX means for sales Amount of effort & traditional strengths of technology providers Land Adopt Expand Renew Adoption must be sold here….. …... so Cross Sell & Renewal is Effortless $ 1.07 to acquire $1 of revenue from new customer $0.18 $0.12 Land Adopt Expand Renew “Technology Service Providers are starting to get it. Doing [adoption] the right way doesn’t get you 5% growth, it gets you 200% growth!” J.B. Wood - CEO, Technology Services Industry Association (TSIA) “A customer is 4 times more likely to defect to a competitor if the problem is service related rather than price or product related.” - Bain & Company “Wall Street loves subscription based revenue models” - Anon “68% of customers leave because they think you don’t care about them.” - Rockefeller Corporation, 18 Customer Facts Marketers Can’t Ignore
  • 9. A Shift To Customer Lifetime Value Model Old transactional model has evolved… …to a customer lifetime value model
  • 10. Customer Success Software Ecosystem A new category of customer success software has emerged to help vendors manage their customer lifecycle has become an industry in its own right. Market leader, Gainsight recently acquired for $1.1B (700 employees). From high touch to no touch. Digital adoption platforms are emerging to automate stages of the adoption and customer success lifecycle with ‘in app’ contextual learning. Adoption Automation Software Software CRM Software
  • 11. Customer value and outcomes Cisco case study landscape Reduced Property Footprint Process Imp. Faster comms. Reduced absence Intangible Profit/ Revenue Operational Savings Virgin Media. Flexible Working Pilot with Cisco WebEx & WebEx Social → Employee engagement scores jumped six points. Largest jump ever recorded. Source: Thomson Reuters & Elisa Nardi, Chief People Officer (Virgin Media) Virgin Media Workplace Transformation Program. WebEx deployment to 5,000 knowledge workers reduced T&E expense 20% YOY Source: Colin Miles, Director of IT Services (Virgin Media) Reduced Travel Expense Faster Info Search Faster People Search Peer-Peer Support Reduced Email Faster time to market Innovation Customer Satisfaction Higher Productivity Increased Sales Nationwide Cisco Video Collaboration → Boosted mortgage sales performance by 66 percent → Improved customer net satisfaction by 70 percent → Cut costs of sales by 66 percent Source: Cisco & Nationwide Building Society Employee Engagement Flexible Working Wellness Culture Change Vodafone 20% savings in travel expense and £400m saved over 10 years. In Cisco TP . Employees avoided 100 trips per month per location, saved 200k hours of employee time over 3 years Source: Factor Five: Transforming the Global Economy (book) Lloyds Banking Group Cisco Video Collaboration → 95% of customers said they got a better experience → 33% of mortgage appointments using video → Increase sales and higher conversion (figure not stated) Source: LBG Press Release
  • 12. The shift to fee paying Customer Success The age of free will be over soon 75% of SAAS vendors consider CS business critical Consulting motions Source: Deloitte. Enterprise Customer Success Outlook, 2009 ROI 91%
  • 13. Shift to outcome based sales & customer success BUSINESS OUTCOMES
  • 14. The difference between free and fee SERVICES • Activation • User training • Self-learning content • Train the trainer • Playbooks • Discovery • Programme management • Service delivery • Communications • On demand coaching • In life support • Product upgrades • Fresh content MONTHLY ACTIVE USERS Customer Led Adoption Vendor Led Adoption Network Effects Customer Success Manager 0% 20% FREE 60% CHANGE MANAGEMENT FEE 100% Customer Success Manager FREE
  • 16. Careers in Customer Success Leadership of All CX/CS Resources in multiple theatres Sets CS vision, strategy, methodology and execution Understands Customer Stratgic Goals Realizes Business Value From Customer Engagements Customer Success Executive (VP) Renewals Manager Partners with Sales & CSMs on Renewal Opportunities Manages Recurring Revenue Owns Deal Strategy for Renewals Drives Renewal Execution Across Products and Services Customer Success Manager (CSM) Executes CS adoption motions and manages the in-life relationship with customers Possesses Deep Product Knowledge Accelerates Usage and Adoption Delivers Training & Coaching Partner Success Manager (PSM) Drives Scale Programs in Theater Builds Local Partner Communities and Practices Manages and Delivers CS Capability To partners Manages Relationships With Partners
  • 17. • Median Base Salary: $88,500 • Job Openings (YoY Growth): 2,000+ (80%) • Career Advancement Score (out of 10): 9 • Top Skills: Customer Relationship Management, Salesforce, Software-as-a- service, Customer Satisfaction, Cloud Computing CUSTOMER Success Manager CS & CX roles are in high demand 4.2M Jobs 2021 2019 5th/6th place
  • 18. Thank you. Room for questions?