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Justifying the Investment for
Customer Success Technology
Kate Leggett
Vice President, Principal Analyst
Guy Nirpaz
CEO & Co-founder
Justifying the Investment for
Customer Success Technology
Kate Leggett, Vice President, Principal Analyst
© 2016 Forrester Research, Inc. Reproduction Prohibited 3
Source: September 12, 2014 “The CIO’s
Blueprint For Strategy In The Age Of The
Customer” Forrester report
Customers Control the Conversation That They
Have with Businesses
© 2016 Forrester Research, Inc. Reproduction Prohibited 4
Our World Is Moving To A Subscription
Economy
Credit: www.zuora.com
The Subscription
Model has tipped
for most B2B
Software Categories.
And it shows no sign
of slowdown.
© 2016 Forrester Research, Inc. Reproduction Prohibited 6
EVERYTHING Is Becoming Part Of The
Subscription Economy
© 2016 Forrester Research, Inc. Reproduction Prohibited 7
Because Of This Relationships - And Outcomes
- Are Becoming More Important
Product	Focused																							 Relationship	Focused
Vendors
Manage
Relationships
Vendors
Deliver
Products
9© 2016 Forrester Research, Inc. Reproduction Prohibited
Onboarding
Driving	adoption
Recognizing	expansion	
opportunities
Manage The Customer’s Journey With Your
Product During Their Lifecycle
Converting	trials
10© 2016 Forrester Research, Inc. Reproduction Prohibited
Customer	success	is	about	
proactively	managing	customer	
relationships	to		impact	churn,	
increase	existing	revenue,	and	
influence	new	sales.
© 2016 Forrester Research, Inc. Reproduction Prohibited 11
Companies use CRM as a
foundation of customer
engagement
$32B
$24B
2015					2016					2017
63%
© 2016 Forrester Research, Inc. Reproduction Prohibited 12
CRM Started Simple
Marketing
Customer
Service
Sales
• Team	and	territory	setup
• Sales	processes	setup
• Call	scripts
• Contact	&	account	mgmt
• Lead	management
• Opportunity	management
• Deal	tracking
• Discounting	and	approvals
• Forecasting
• Sales	performance	
management
• Commissions	management
• Incentive	compensation
© 2016 Forrester Research, Inc. Reproduction Prohibited 13
Pre-purchase
sales journey
Post-purchase account
management journey
CRM Is Good For Sales – But Has Limitations
For Ongoing Customer Management
How can companies equip their customer-
facing personnel with the right information
about the customer in order to add value
with each interaction?
© 2016 Forrester Research, Inc. Reproduction Prohibited 15
Issues With
Data And
Insights
Rise To The
Top
Customer
Features
Inactive	
users
Provisioned	
users
Contract
Terms	
Renewal
Realized	
economic	
value
Audit	
records
Feedback
Advocacy
Support	
feedback
Customer	
feedback
Active	
users
Goal
Measures		
of	success
Alerts
Calls	and	
tickets
On-
boarding	
Customer Success Starts With Having The
Right Data
© 2016 Forrester Research, Inc. Reproduction Prohibited 17
And The Right Processes To
Manage Customer Success
DATA
INSIGHTS
WORKFLOWAggregation
Cleansing
Visualization
Segmentation
Personalization
Discovery	
Map	to	customer	journey:
Onboarding
Adoption
Retention
© 2016 Forrester Research, Inc. Reproduction Prohibited 18
Today’s Expanded
CRM Ecosystem
Needs To Include
Customer Retention
Technology
Marketing
Customer
Retention
Customer
Service
Sales
Thank you
forrester.com
Kate Leggett
Vice President, Principal Analyst
kleggett@forrester.com
Twitter: @kateleggett
Customer Success
Technology Explained
Guy Nirpaz
Co-founder & CEO of Totango
Author of
Farm Don’t Hunt
The Definitive Guide to Customer Success
Guy Nirpaz,
Founder and CEO of Totango
1. Customer Love
2. Customer Satisfaction
3. Customer engagement
4. Customer Retention & Upsell
Customer
Success Is?
Why new technology?
1 - The Customer Base Constantly Changes
2 - Grovevs. Wild Forest
Constant Stream of Customer Data that makes meaning over time
Stream of indicators Customer Health
We need a constant monitoring technology to be proactive
Relational Database
/ Record Keeping
Passive
Sensors/Monitoring
Proactive
Messaging System
Reactive
Sales CRM Service CRM Totango
SUBSCRIBE
RENEW - $
UPGRADE - $$$
Funnel Management
Turn prospects into subscribers
Customer Success Management
Retain and grow subscribers
Active
Subscriber Cancelled –
000$
CANCELProspect
Rec. Revenue businesses are dependent on customer retention and upsell
Customer Success: Proactively Impact Customer Lifetime Value
Onboarding
Nurturing
Renewal
Expansion
Customer
Success is
farming
GrowingNew
The RECURRING nature of the lifecycle
determines the operating model
z
In Renew/Upsell
Cancelled
SAVING
ACTIVITY
GrowingNew
Nurture is what we do most of the time
z
In Renew/Upsell
30
days
30
days
305 days
Customer Value
over
Customer Management
Source: The Customer Success Manifesto
New
ON BOARDING
ACTIVITY
Growing
NURTURING
ACTIVITY
In Renew/Upsell
HARVESTING
ACTIVITY
Cancelled
SAVING
ACTIVITY
DRIVERS OUTCOMES
As your customer base grows,
scaling Customer Success becomes
complex and unpredictable
Drivers
Results
Risks
ONBOARDING
PROGRAMS
ONBOARDING
PLAYS
ON-GOING
NURTURING
USAGE BASED
CAMPAIGNS
SAVING
PROGRAMS
ESCALATION/
SAVING PLAYS
PLAYS
Drivers
RETENTION
PROGRAMS
RECURRING EVENT-BASED
SUCCESS PROGRAMS& PLAYS
At Risk
In Harvest
Growing
New
Churn
--------------------
Retention
--------------------
Upsell
Save Rate
--------------------
ActiveEscalations
METRICS
Time to Value
--------------------
Satisfaction
Results
--------------------
Adoption
--------------------
Utilization
The Portfolio Scorecard
© 2016 Forrester Research, Inc. Reproduction Prohibited 35
And The Right Processes To Manage Customer Success
DATA
INSIGHTS
WORKFLOWAggregation
Cleansing
Visualization
Segmentation
Personalization
Discovery
Map to the customer journey:
Onboarding
Adoption
Retention
Putting it Together – Integrate into the CRM Eco-System
Think Fitbit connected to every user and customer
Alert for customers that
need attention
EARLY WARNING
SYSTEM
PROCESS & WORKFLOW CAMPAIGNS ANALYTICS
Drive user and account
behavior, adoption and
upsell
Analytics to predict
churn and upsell
Planning, execution, and
tracking of the key
business processes
PROACTIVE USER & CUSTOMER MONITORING
Monitor in real-time the keymetricsof adoption, value delivered,
utilization, operational incidents…
Engagement
Sensors
Simple, Smart, and Effective
Customer Success Technology
Team Performance
Campaigns
Retention Center
Account Scorecard
Mobile Portfolio Manager
Thank you!
Questions?
Kate Leggett
Vice President, Principal Analyst
kleggett@forrester.com
Twitter: @kateleggett
Guy Nirpaz
CEO & Co-founder
gnirpaz@totango.com
Twitter: @guynirpaz

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Justifying the Investment for Customer Success Technology