Mastering the Renewal and Maximizing Cross-Sell
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Tony Nadalin, VP of Customer Success at Marketo Todd Mcevilly, VP AM at DocuSign Presented at Pulse Conference 2015.
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Mastering the Renewal and Maximizing Cross-Sell
- 1. ©2015 Gainsight. All Rights Reserved. Mastering the Renewal and Maximizing Cross-sell Moderator: Jill Rowley Tony Nadalin, VP of Customer Success at Marketo Todd Mcevily, VP AM at DocuSign
- 2. ©2015 Gainsight. All Rights Reserved. VP, Customer Success and Retention tnadalin@marketo.com Tony Nadalin INSERT YOUR PHOTO HERE INSERT YOUR PHOTO HERE INSERT OR TYPE YOUR COMPANY NAME HERE INSERT OR TYPE YOUR COMPANY NAME HERE
- 3. ©2015 Gainsight. All Rights Reserved. Mastering the Renewal and Maximizing Cross-sell 1. Staff to capacity - X renewals per month, 3 month cycle 2. Set compensation goals on Retention and Upsell targets 3. Continuous Sales collateral and training – customer value 4. Front line “save plays” with pre built investments for scale and empowerment 5. SPIFF based on macro arcs – MYR, Annual Terms, Product Lines 6. Set early close pace to drive on time goals and decisions 7. Create customer facing process for mutual success – Path 2 PO 8. Start early – 120 days and 90 days – DIAC and DIAQ 9. Remove subjectivity on out of contractual impact – company policy 10. Inspect deals for mentoring and triage 11. Track and manage Forecasting accuracy week over week 12. Improve – capture codes that indicate loss rationale 13. And Have fun – recognize reward high performers on monthly basis Bakers Dozen - Secrets of Success
- 4. ©2015 Gainsight. All Rights Reserved. $120K $20K $40K $60K $80K $100K $140K $160K Beginning Customer ARR* Retained ARR Partial LossFull Loss Net Annual Recurring Revenue Rate Ending Customer ARR” Cross Sell Churn Upsell Expansion Revenue Retention and Upsell
- 5. ©2015 Gainsight. All Rights Reserved. $120K Close d $20K $40K $60K $80K $100K $140K Renewal Opportunity Excl MYR Retained APOR Partial LossFull Loss Retention Rate Churn Usage Right Expansion Additional Discount Reduction of SKU Loss of SKU $100K $0K Discount Recapture Increase of Existing SKU Technical Add On $200K $0K Partial Loss Analysis Usage Rights Expansion $100K Ope n Unpacking Losses and Gains
- 6. ©2015 Gainsight. All Rights Reserved. 20% 50% 95% 100% 0 POR Month End +30-30-60-90 Objective: Manage pacing of contract resolution against planned rates to ensure minimal in month compression of contracts, reducing risk of contractual exposure and reduced sales cycle Plan – Batch Month End Pacing Actual M-1 Batch: 100% “Finance” Closed Actual M0 – Current Month Batch Actual M+1 Batch Actual M+2 Batch Batch Resolution Pacing
- 7. ©2015 Gainsight. All Rights Reserved. Path 2 PO
- 8. ©2015 Gainsight. All Rights Reserved. Marksman Award: Forecasting Accuracy at beginning of quarter to actual number. Must beat plan Award: $50 Sandbagger Award: Forecasting Accuracy (not) at beginning of quarter to actual number. Must beat plan Award: $5 Kiss Of Life Award: Revival of a lost account Award: $100 Endurance Award: Victory after an excessively long and hard slog. Award: $100 Purple Pirate (NARR) Award: Maximum Retention and URE beating plan Award: $200 Rewards Program
- 9. ©2015 Gainsight. All Rights Reserved. Mastering the Renewal and Maximizing Cross-sell 1. Staff to capacity - X renewals per month, 3 month cycle 2. Set compensation goals on Retention and Upsell targets 3. Continuous Sales collateral and training – customer value 4. Front line “save plays” with pre built investments for scale and empowerment 5. SPIFF based on macro arcs – MYR, Annual Terms, Product Lines 6. Set early close pace to drive on time goals and decisions 7. Create customer facing process for mutual success – Path 2 PO 8. Start early – 120 days and 90 days – DIAC and DIAQ 9. Remove subjectivity on out of contractual impact – company policy 10. Inspect deals for mentoring and triage 11. Track and manage Forecasting accuracy week over week 12. Improve – capture codes that indicate loss rationale 13. And Have fun – recognize reward high performers on monthly basis Bakers Dozen - Secrets of Success
- 10. ©2015 Gainsight. All Rights Reserved. THANK YOU
- 11. ©2015 Gainsight. All Rights Reserved. VP, Account Management Todd McEvilly
- 12. ©2015 Gainsight. All Rights Reserved. The CSM Sweet Spot:
- 13. ©2015 Gainsight. All Rights Reserved. The CSM Sweet Spot: Services Services
- 14. ©2015 Gainsight. All Rights Reserved. Measuring Success:
- 15. ©2015 Gainsight. All Rights Reserved. Tiered Engagement Model DOCUSIGN CONFIDENTIAL 15 • AM: 10 Accounts • PV: $5M ACV • Prescriptive & Tailored Communication • On-site QBR • Weekly Status Calls • Formal Governance Model w/ DS Exec Sponsor • AM: 75 Accounts • PV: $2.5M ACV • One-to-many campaigns • Annual SBR • Monthly Status Calls • Premier Support Escalation • AM: 30 Accounts • PV: $4M ACV • Targeted Communication • QBR • Bi-Monthly Status Calls • Formal Governance Model
- 16. ©2015 Gainsight. All Rights Reserved. 10+ for 10: 1. Adoption drives retention and growth 2. Align your Company to customer success (One Key Metric) 3. Understand how each client measures success 4. Be a steward of protecting Cost-of-Sale 5. Maximize the compelling event(s) 6. It’s a team sport 7. Ensure VCP drives desired behavior 8. Leverage CTA’s to drive retention & sales 9. Assume competitive threat 10.You are always renewing/selling
- 17. ©2015 Gainsight. All Rights Reserved. THANK YOU
Editor's Notes
- If your customer doesn’t see value from your product or service, there low switching costs, lots of options Low Barrier To Entry Fast customer acquisition Revenue growth potential You know so much more about your customer Speed of innovation Lower barrier to exit Large customer volumes Revenue growth expectations Multiple sources of data to manage Competitive landscape & fickle customer base ----- Meeting Notes (3/26/15 16:06) ----- Try to find a good slide to quantify the impact. Got to address this now. ----- Meeting Notes (3/26/15 16:32) ----- Change to circles Pay as you go pricing
- First I want to talk about how we look at the CSM’s role in driving renewals – they are won when we align to our customer’s strategic initiatives and are continually helping to drive results In order to know that, we needed a singular person responsible for learning what our customers needs are and how we can help them. This starts by listening to them, asking questions and listening, doing your research Some questions that are critical to this process are (bullet points)… Transition: I've talked a little about how we view our role in our customers’ success and how we believe it drives renewals and growth, so lets take a look at a few things that are critical to protecting and growing our revenue…
- First I want to talk about how we look at the CSM’s role in driving renewals – they are won when we align to our customer’s strategic initiatives and are continually helping to drive results In order to know that, we needed a singular person responsible for learning what our customers needs are and how we can help them. This starts by listening to them, asking questions and listening, doing your research Some questions that are critical to this process are (bullet points)… Transition: I've talked a little about how we view our role in our customers’ success and how we believe it drives renewals and growth, so lets take a look at a few things that are critical to protecting and growing our revenue…
- First I want to talk about how we look at the CSM’s role in driving renewals – they are won when we align to our customer’s strategic initiatives and are continually helping to drive results In order to know that, we needed a singular person responsible for learning what our customers needs are and how we can help them. This starts by listening to them, asking questions and listening, doing your research Some questions that are critical to this process are (bullet points)… Transition: I've talked a little about how we view our role in our customers’ success and how we believe it drives renewals and growth, so lets take a look at a few things that are critical to protecting and growing our revenue…
- Striking the balance between reducing churn and earning the right to upsell, who should own upsell) Adoption, Retention, and IB(Installed Base)MRR growth are directly correlated with each other. Like many Customer success functions, DocuSign has evolved the focus of the role over time, to meet the needs of the company and our clients. With that said, my belief is that there are three core measurements of success which should be constant for any Account Management/Customer success role. The question is, what level of focus does each of these compenents have. In the most recent iteration of the Account Mgmt model, AM’s were primarily focused on driving revenue growth within the accounts. We have many accounts that are beach head deals and recognized the opportunity for expanding usage into the accounts. EAM priority is to retain existing MRR, by demonstrating value of clients existing investment in DS. As discussed earlier, Avg Churn over the last couple years has been 20%. By end of FY15 our objective is to begin avg of 15% with trend lower in FY16. In order to retain the existing revenue, we must consistently increase adoption; While there will be numerous indicators of Adoption, we’ll be driving towards a 10% Quarter over Quarter increase in envelope consumption in the Enterprise accounts; If we drive adoption, we’ll be maintain the existing revenue stream and earn the right to grow the MRR of our existing customers. IBMRR accounted for 30% of MRR in FY2014; with an increased focus on adoption, driving customer loyalty, and EAE/EAM collaboration, we are driving to increase IBMRR to 40%. Focus: Account Team Coordination Scalable & Programattic Tool Development Account Visibility
- Always adopting, renewing, and selling Tailored/Focused Engagement Accelerated/targeted revenue growth Churn Mitigation Stronger Verticalization EAM Scalability Clean up #’s..