The document outlines key principles for developing a world-class customer success organization, emphasizing that the focus should start with the customer and their desired outcomes. It highlights five common mistakes to avoid, such as implementing a one-size-fits-all strategy and neglecting the evolution of customer needs. Additionally, it provides five steps for building an effective customer success team, including logical customer segmentation and developing a structure for measuring success.

1. Developing a
World Class Customer Success
Organization

2. Should you Charge for Customer Success?
Omid Razavi
Lincoln Murphy
Customer Success Evangelist
Gainsight

3. “The purpose of business is to
create and keep a customer.”

4. Customer Success is when
your customers achieve
their Desired Outcome
through their interactions
with your company.
Copyright© 2016 Sixteen Ventures. All Rights Reserved.

5. Copyright© 2016 Sixteen Ventures. All Rights Reserved.

6. Customer Success as a Purpose
Desired
Outcome
Adoption Expansion AdvocacyRetention
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7. Customer Success Management is
the proactive orchestration of the
customer’s journey toward their
ever-evolving Desired Outcome.
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8. Customer Success
Management is
Real
Customer Relationship
Management

9. Creating a World Class
Customer Success
Organization

10. 5 HUGE
(But Common)
Mistakes to avoid

11. Starting with [anything other
than the customer]
Mistake #1

12. Mistake #1: Starting with “Anything Other Than the Customer”
Don’t start your Customer Success Strategy with:
• KPIs
• Tactics
• Hiring
• Tools and Technology

13. Building a One-size-fits-All
Strategy
Mistake #2

14. Mistake #2: Building a “One-size-fits-All” Strategy
Creating a one-size-fits-all strategy for customers that require different:
• Cadence and Depth of Touch Points
• Coverage Levels
• Interaction Modalities
• Skillsets
• Expertise and Vertical Knowledge

15. Hiring only “CSMs”
Mistake #3

16. Mistake #3: Hiring only “CSMs”
• Customer Success needs leadership and an equal seat at the
table
• Don’t hire a “CSM” and hope they can do everything; not fair to
anyone
• Definition of a CSM (or other practitioner) varies across
different segments
• A one-size-fits-all definition of a “CSM” that works across
different logical customer segments and does EVERYTHING

17. Not acting as if…
Mistake #4

18. Mistake #4: Not acting as if…
• Act like you’re an actual org
• Even if it’s only you right now
• Have a KPI to measure Org Success
• Could be a short-term metric
• Have a Measure for Individual Success
• Develop a Health Score for the Customer

19. Not understanding that
things will change
[and being okay with that]
Mistake #5

20. Mistake #5: Not understanding that things will change
• There is no "set it, and forget it” in Customer Success
• Evolution is Inevitable (and a good thing)
• Team members evolve
• The org evolves
• The market evolves
• Your product evolves
• Your company evolves
• Your customers evolve

21. 5 Steps to Building a World
Class Customer Success Org

22. Start with Logical Customer
Segmentation
Step #1

23. Step #1: Start with Logical Customer Segmentation
• On a per-product basis
• Logical is the key word
• It will be unique to your
company / situation:
• Customer Revenue
• Revenue-potential
• Use case
• Vertical
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24. Understand the
Desired Outcome for each
Segment
Step #2

25. Step #2: Understand the Desired Outcome for each Segment
• Desired Outcome
• What they need to achieve? (Required Outcome)
• How they need to achieve it? (Appropriate Experience)
• Map Success Milestones
• Include Success Gaps
• Joint Accountabilities
• What do they have to do to achieve it?
• What do you have to do to ensure they achieve it?
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26. Copyright© 2016 Sixteen Ventures. All Rights Reserved.
Desired Outcome Mapping

27. Mapping Success Milestones
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28. Copyright© 2016 Sixteen Ventures. All Rights Reserved.
Mapping Success Milestones

29. Create a Coverage Model
Step #3

30. Step 3: Create a Coverage Model
•Determine Required Coverage
• Humans
• Technology
• Mix of both
• Modalities & frequency

31. Time vs. Data-Based Engagement

32. Use Technology to Scale

33. Identify Required Roles
Step #4

34. Step #4: Identify Required Roles
•Determine Roles you need to fill
• CSMs
• Ops
• Customer Marketing
• Advocacy
• Expansion
• Renewals

35. Step #4: Identify Required Roles
•Ideal Individual Contributor Characteristics
• Executive presentation skills
• “people” person
• Analytical
• Closer
• Copywriter

36. Develop Measures &
Management Structure
Step #5

37. Step #5: Develop Measures & Management Structure
• Leadership
• COO / CRO
• Chief Customer officer
• VP Customer Success
• Measurement
• Weighting Org vs. Team
• NRR + Customer Health?
• Compensation Models
• Variable vs. Salary
• Quota vs. Goals

38. Customer Success is when
your customers achieve
their Desired Outcome
through their interactions
with your company.
Copyright© 2016 Sixteen Ventures. All Rights Reserved.

39. “The purpose of business is to
create and keep a customer.”

40. Lincoln Murphy
Customer Success Evangelist
Gainsight
Questions?
@lincolnmurphy
lmurphy@gainsight.com