Where is the ROI? Justifying a Renewal or Upsell Using Actual Customer Usage Data
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Customer Success Summit 2016 Breakout Session Presented by: Ariel Utnik, VP Customer Success, Panaya
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Where is the ROI? Justifying a Renewal or Upsell Using Actual Customer Usage Data
- 1. Where is the ROI?
- 2. © Panaya | An Infosys Company PANAYA2 © Panaya | An Infosys company PANAYA2 © Panaya | An Infosys company Where is the ROI? Justifying a Renewal or Upsell Using Actual Customer Usage Data VP Customer Success Ariel Utnik
- 3. © Panaya | An Infosys Company PANAYA About Panaya & Me About Panaya: • Panaya is the market leader in change analytic and cloud-based software testing, tailored for ERP. • Acquired by InfoSys for $230M About me: • In love with the Customer Success mission, with special focus on churn reduction and prevention
- 4. © Panaya | An Infosys Company PANAYA4 Build more value faster for your company and ours— and we can prove it. The Mission of a Customer Success Team PANAYA “ “Customer success association http://www.customersuccessassociation.com/definition-‐customer-‐success-‐management/
- 5. © Panaya | An Infosys Company PANAYA5 Have you heard from your customers that the tool costs too much vs the value they get?
- 6. © Panaya | An Infosys Company PANAYA6 Are you able to justify renewal price increase or upsell for customers that are “heavily” using your system?
- 7. © Panaya | An Infosys Company PANAYA7 Do you have any idea what is the $ saving your customer gets from your tool? Are you able to prove it?
- 8. © Panaya | An Infosys Company PANAYA8 So how can we prove it? Show me the money..
- 9. © Panaya | An Infosys Company PANAYA9 1. Build a post usage ROI tool 2. Validate the tool 3. Update your customer journey to collect relevant data for the post ROI 4. Manage the post usage ROI meeting The steps for your own post usage ROI
- 10. © Panaya | An Infosys Company PANAYA10 • Start with your pre-sale ROI tool Remember the promise and language… • Think from the customer ROI meeting backward What points you want to make What story do you want to tell • Quantify the saving per activity / event Refer to activities that customer understand and value • Use industry standard, cost surveys and past experience Use reference that customer accepts and trusts Build a post usage ROI tool
- 11. © Panaya | An Infosys Company PANAYA11 • Build the calculation based on formulas with simple ability to update the parameters Parameters may be different for every customer • Generate the data from your application / totango Is your customer aware of their level of usage? • Don’t overshoot, customer should trust this ROI after he understands the details Data must be trusted Build a post usage ROI tool
- 12. © Panaya | An Infosys Company PANAYA12 • Start with your organization CSM, Sales, Product must buy it first • Industry peer validation e.g. VP Global business application from Ness • Customers validation “The Fact Sheet with the numbers in front of my eyes are a very good picture” “This is a proof that indeed we’re having benefits using your tool” “This is encouraging… This brings us to focus more on testing” • Is a CFO convinced to buy the product when he gets this data? Numbers must talk Validate the tool
- 13. © Panaya | An Infosys Company PANAYA13 • Collect the data from day 1 Highest customer attention is during the onboarding • Incorporate those parameters into your customer journey process There is no “post usage ROI” step in your onboarding Collect data from customers
- 14. © Panaya | An Infosys Company PANAYA14 • Make it simple, talk in savings ($, Hr, Mo to ROI) Must be based on the customer KPIs • Define in advance what is the desired outcome of the meeting (renewal? Upsell?) This will dictate your meeting strategy • Make sure your champion is involved and aligned with the ROI preparation The best you can ask for is that the champion will present part of it • A good meeting should be with the executive sponsor and the champion Don’t hold the meeting with the wrong audience Manage the post usage ROI meeting
- 15. © Panaya | An Infosys Company PANAYA15 • Don’t get into the details if not needed Less is more • Better to use excel format and not fancy presentations Keep the engineering look and feel • Before you leave the room confirm your desired outcome A.B.C – Always Be Closing Manage the post usage ROI meeting
- 16. © Panaya | An Infosys Company PANAYA16
- 17. © Panaya | An Infosys Company PANAYA17 Summary “ PANAYA Customer Success -‐ build value fast, and prove it! Prove it in a way the customer can quantify and understand
- 18. © Panaya | An Infosys Company PANAYA PANAYA WORKSHOP 18 Questions?