Presented by Tal Tsfany, VP of Customer Success at Mulesoft, at Customer Success Summit 2018. Customer Success team members need to think about value in terms of corporate objectives as well as customer objectives. Tal will share how to effectively communicate with company executives to show the value of customer success initiatives.

1. “Talk the Talk”
Becoming a
Chief Customer Officer
Tal Tsfany

2. I want you to be an Officer!

3. Place: company HQ
Time: 9/15/2018
Subject:
2019 Budget Plan
Company growing from
50 to $65M
2018 CS budget – $3M

4. SCENARIO 1

5. We’re Doing Great!

6. We’re Doing Great!
Retention rate increased from 88% to 90%

7. We’re Doing Great!
Post Implementation CSAT at 95%

8. We’re Doing Great!

9. And we’re working so hard…
over 50 customers per CSM

10. Customer Success – 2019 Budget Ask
Asking for 30% increase in CS budget for FY19
1.Increase CSM Coverage
2. Invest in CS Ops
3.Create Partner Certification Program

11. SCENARIO 2

12. Customer Success – from 2018 to 2019
1. Presales Impact
2. Success Impact
3. Cost Efficiency

13. Presales Impact
• Doubled 75% Presale Engagements from 60 to 120
• CS Presale Engagements yield 40% conversion vs. 25%
• 18 won deals more a year
• With ARPA of 100K – total CS Impact is = $1.8M

14. Success Impact
• Increased NRR from 95% to 115% = $10M
• Total CS impact = $15M vs. CS cost of $3M
• 10% impact on base RR, 20% impact on add-on
• Impact on Company Valuation = $85M
• Path to $100M – 28 Months vs. 60 Months without CS NRR
Increase

15. Cost Efficiency
• Grew ARR/CSM by 15% from 4.35M to 5M
• Negative NRR impact for CSMs with over 5M
• ROI per CSM - 235K cost vs. $1.5M gain
• 30% NRR impact on a $5M Portfolio

16. 2019 Budget
• CS Growing 25% vs. 30% company growth
• Bigger portfolios in the Enterprise segment
• Asking for 25% additional investment in:
• Partner Certification - planned to yield $10M from Partner-led deals
• Building a CS Data Analytics team - increase expansion predictability and
improved customer segmentation = +5% Net Renewal Rate = $3M
• Total Budget for 2019 – $4.5M, CS Direct Impact - $18M
• Total CS Impact – $30M (Presale, NRR, Partner Enablement)

17. Organizing for Add-On - 2D Segmentation Model
18
Tier 3
ARR Potential: LOW
A/O Likelihood: LOW
Tier 3
ARR Potential: HIGH
A/O Likelihood: LOW
Tier 1
ARR Potential: HIGH
A/O Likelihood: HIGH
Tier 3
ARR Potential: MEDIUM
A/O Likelihood: LOW
Tier 2
ARR Potential: HIGH
A/O Likelihood: MEDIUM
Tier 2
ARR Potential: MEDIUM
A/O Likelihood: MEDIUM
Tier 1
ARR Potential: MEDIUM
A/O Likelihood: HIGH
Tier 2
ARR Potential: LOW
A/O Likelihood: MEDIUM
Tier 1
ARR Potential: LOW
A/O Likelihood: HIGH
GROW
Increase
A/O
likelihood
RETAIN
High
Medium
Low
Not Ready Potential Ready to Grow
Growth Readiness
ARRPotential

18. So which one are
you going to be?
Customer
Success
Cost center
Customer
Success
growth
center

19. Thank you!