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To Monetize or To Not Monetize - CSSummit18
The document discusses the challenges and strategies of three companies in customer success and monetization models, highlighting lessons learned from their experiences. It emphasizes the importance of aligning funding models with customer needs and the impact of leadership changes on performance metrics. Key elements include customer health measurement, lifecycle tracking, and the introduction of success packages to drive revenue growth and improve customer renewals.
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To Monetize or To Not Monetize - CSSummit18
- 1. To Monetize ..or not Monetize .. Three companies … 3 Customer Success launches and lessons learned Note: All financial numbers have been modified to protect financial information but still illustrate concepts.
- 2. “We believe itis in both the customer’s best interest and the technology company’s best interest to have a funding model that ensures the right services are available to customers for the long haul” -- Source: 2017 State of Recurring Revenue, Technology Services Industry Association
- 3. The Agenda: ACT 3 2018 ACT1 ACT 2 2016 2017
- 4. Act 1: SciQuestClient Partner Program Program Summary: • 17 Client Success Partners • Allocated to customers above a threshold • No Charge – Investment in Renewals Offer Summary: • Primary Contact Post Implementation • Strategic Performance Reviews • Solution Reviews • Releases Preparation & Guidance • Escalation Management Dedicated CP Transition to Support Performance Review KPI’s Metrics, Benchmarking Release Education SOLUTION REVIEWS 2016
- 5. Everything went greatuntil new leadership asked … Metric Answer Revenue Growth No .. Customer Renewals Tangentially .. Profitability Negatively? Can you demonstrate your impact on: Sales CEO Support Success Added a Quota Cut ½ the team Lost another 3rd Failed Expectations
- 6. The Agenda: ACT 3 2018 ACT2 2016 2017
- 7. Act 2: BravoSolutionCustomer Success Situation • Account Management buried in accounts = Stunted Revenue Growth • Professional Services can’t roll off = Poor Utilization Solution: Customer Success • Customer Health Measurement • Lifecycle Tracking • Issue Management / Escalations • Voice of the Customer
- 8. The Foundation People TechnologyProcess Sr.CSA CSA X 1 X 2 Sr. CSA X 1
- 9. Once again ..everythingwent great until new leadership asked … Metric Answer Revenue Growth No .. Customer Renewals Tangentially .. Profitability Negatively? Can you demonstrate your impact on:
- 10.
- 11. Today we arealways asking: Metric Answer How Revenue Growth Yes Success Package Revenue: Target 30-50% of Customers Customer Renewals EOY – 2018 Correlation: Health / Plays / Renewal Profitability By Project Operationalize Customer Lifecycle How will we demonstrate measurable impact on:
- 12. Success Packages Success Packages AlaCarte Services Success Pack Pricing and ARR Account Fake ARR Premier Min Premier ARR Premier + Min Premier + ARR
- 13. Renewals Risk Assessments Regular RiskReviews Risk Assessments Improved Health
- 14. Example Life CycleProject & Impact Project Impact Clear handoff from PS to Success Improve Utilization New User Onboarding Reduce Support Costs Super User Training Reduce Escalation Costs …
- 15. To Monetize ..or not Monetize.. YES!!
- 16. But…….Is this rightfor you? What is your organization’s funding / investment model? What is your investors time horizon? What is your role/opportunity to contribute to valuation?
- 17.
Editor's Notes
- #2 Open with Questions to the Audience (right before lunch) Please stand up if your organization has a clearly defined strategy for monetizing customer success Please remain standing if you can point to a clearly defined financial measure of success (Revenue or Renewals) (If enough are standing) – How many of you are operating in B2B environment? Transition: This presentation tells the story of two false starts where we could NOT remain standing because we did not monetize. And who lost? The Team? Yes … Our Organization .. Yes .. .but most importantly .. The Customer.
- #3 Points: No alone in this assertion TSIA Feels the same Believe in CS Believe in sustaining it because WE MAKE CUSTOMERS SUCCESSFUL.