Is your company adopting customer success but doesn’t know where in the organization it fits? Should customer success live under sales, marketing or product? How should you account for customer success? Watch Lincoln Murphy, Customer Success Evangelist, as he deep dives into issues such as: The common mistakes when starting out (and how to avoid them) How logical customer segmentation is key to effective coverage levels Why the ideal characteristics of CSMs vary across customer segments (and how to plan for that) And much more... In Lincoln’s previous webinar, “Developing the Ultimate Customer Success Strategy” he discussed the value of implementing customer success at your company and why minimizing your attrition rate through customer success is imperative to any modern business. This is the next evolution of the discussion, taking the theory into practice.

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
Copyright© 2016 Sixteen Ventures. All Rights Reserved.

7. Customer Success Management is
the proactive orchestration of the
customer’s journey toward their
ever-evolving Desired Outcome.
Copyright© 2016 Sixteen Ventures. All Rights Reserved.

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
Copyright© 2016 Sixteen Ventures. All Rights Reserved.

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?
Copyright© 2016 Sixteen Ventures. All Rights Reserved.

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