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SuccessFactory_CS_Guide_2015
Customer success ensures that customers realize business results from products through ongoing engagement, collecting usage data and metrics, and using KPIs, reports and playbooks to predict and enhance the customer experience. Customer success drives much more revenue than sales alone by helping customers adopt products and renew over time. Key customer success functions include account management, enablement, renewals/growth, and support. Common tools used are CRM, support, and survey platforms. Key metrics include renewal and growth rates, churn, customer satisfaction, and cost effectiveness. Metrics should be analyzed by customer cohorts to identify opportunities.
SuccessFactory_CS_Guide_2015
- 1. SuccessFactory’s Guide to CustomerSuccess 2015
- 2. Customer Success ensuresthat your customers realize the business results from your products through ongoing engagement, collection of success-based usage data and metrics, and utilizing KPIs, reports and playbooks to predict and enhance the customer experience. Why Customer Success as an Organization? Sales only brings in a minority of the lifetime revenue per customer. You’ll get as much as 6x the initial deal size out of many of your customers, once the deal is closed. The driver behind this is Customer Success.
- 3. Customer Success ValueGraph 3 Time Value Sales and Marketing Customer Success Shared Deliver advocacy Cross-sell Growth/Upsell Drive adoption of product Drive satisfaction Manage renewals Proactive Support Onboarding Awareness Lead generation Evaluation Purchasing Monitor product quality Deliver KPIs, NPS, etc.
- 4. Customer Success MissionStatement To build brand advocates through value creation, strong relationships, transparency and trust; thus, ensuring maximum retention, referrals and growth potential
- 5. CS Role inCustomer Lifecycle
- 6. CS Role inCustomer Lifecycle Awareness Evaluation Purchase Enable Adopt Acquire Deliver Nurture Validate Advocate Retain, Grow and Refer Sales and Marketing Customer Success Refer Retain Grow
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- 8. CS X-Functional Impact MarketingSalesCustomer Success Product Eng. Referrals X X Testimonials Quality X XO Adoption X Usability Growth Awareness XX X O O O O X X X : Direct Impact / O : Indirect Impact
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- 10. Account Management** Support CS Organizational Functions* Enablement& Services Integrations (if applicable) Renewals/ Growth Health Relationships Advocacy Growth Adoption Renewals Churn Mitigation QBRs NPS/Surveys KPIs Problem Resolution Escalations Quality/QA CSAT Help Center Community Churn Mitigation Training Onboarding Conversions Project Mgmt. Certifications Webinars Training Data Entry Image Sizing Portal Buildout Make Stuff Work with other Stuff $$$ * some of these functions can be combined based on business and market ** CSE (CS Executive $1M-$1.5M + VIP) ; CSM (CS Manager $300k-$1M) ; CSA-1 (CS Assoc. Level 1 $100k-$300k) ; CSA-2 ($1-$100k)
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- 12. CS Organizational Tools& Impact Support Enablement/ Services Account Management Integrations Renewals/ Growth Gainsight XSalesforce Zendesk O X X NiceReply O GetSatisfaction Wrike PagerDuty XX X X X X X : Primary / O : Secondary CSM CRM Support CSAT Community PM Escalation Example**Tool* O O O X O O X O O O O SurveyMonkeySurveys/NPS X O * not all tools required and is based on CS functional alignment ** Examples are for reference only
- 13. CS Key PerformanceIndicators
- 14. AccountManagement Target >=+5 perAM # of Healthy vs. UnHealthy Accounts Growth vs. Churn CS Sample Key Performance Metrics - Account Management* # of References Gained/Lost per Qtr Target 80% Healthy Target Growth 1% ARR Managed ; Target Churn <.5% Target >=80% Red Accounts Retention * target will differ based on business and market
- 15. Support Target <=1.5 hours(during business hours) Resolution Time One Touch Tickets CS Sample Key Performance Metrics – Support* Average 1st Reply Time Target <=1 Day Target >=85% Target >=95% Customer Satisfaction * target will differ based on business and market
- 16. Revenue ((Beginning of periodARR + ARR from Upsells) - (ARR from downgrades+churn)) / beginning of period ARR (Best in class >120%) % Attrition % Growth CS Sample Key Performance Metrics - Revenue Net Revenue Retention ARR of churn dollars including price decreases and downgrades / beginning of period ARR (Best in class < 10%) (ARR of customers renewed in period + ARR of up-sells in period) / (Total cost of CS team) (Ideally, this number would be 3-5x) Cost Effectiveness of Customer Success ARR of upsell dollars including price increases and upgrades / beginning of period ARR (Best in class >20%)
- 17. CS Sample Key PerformanceMetrics - Slice and Dice (Cohort) Renewals, Upsells, Churn, Integrations, Training, Support Tickets, Productivity, Health, NPS, Adoption, References... By: SIZE VERTICAL TOUCH TIME TO VALUE CSM AE USAGE TIME OF YEAR SOLD