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Justifying the Investment for Customer Success Technology

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Traditionally, CRM systems were designed around sales and service. In the new realities of recurring revenue business models, in which customer value spans beyond a one-time sale, enterprises are now faced with challenges of retention, upsell and optimizing the entire revenue cycle.

In this webinar, Guest Speaker Kate Leggett, VP, Principal Analyst from Forrester Research and Guy Nirpaz, Totango Co-Founder & CEO and the author of “Farm Don’t Hunt - The Definitive Guide to Customer Success” discuss:

- A reality in which CRM systems need to span beyond sales and service in the subscription economy

- The emergence of Customer Success Technology that allows companies to focus on customers

- ​Ways to optimize the entire revenue cycle Customer Success, as a model and methodology, represents an opportunity for enterprises to break down the silos of customer data and business processes.

Learn how this will lead to operational improvements around customer centricity and growing recurring revenue.

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Justifying the Investment for Customer Success Technology

  1. 1. Justifying the Investment for Customer Success Technology Kate Leggett Vice President, Principal Analyst Guy Nirpaz CEO & Co-founder
  2. 2. Justifying the Investment for Customer Success Technology Kate Leggett, Vice President, Principal Analyst
  3. 3. © 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
  4. 4. © 2016 Forrester Research, Inc. Reproduction Prohibited 4 Our World Is Moving To A Subscription Economy Credit: www.zuora.com
  5. 5. The Subscription Model has tipped for most B2B Software Categories. And it shows no sign of slowdown.
  6. 6. © 2016 Forrester Research, Inc. Reproduction Prohibited 6 EVERYTHING Is Becoming Part Of The Subscription Economy
  7. 7. © 2016 Forrester Research, Inc. Reproduction Prohibited 7 Because Of This Relationships - And Outcomes - Are Becoming More Important Product Focused Relationship Focused
  8. 8. Vendors Manage Relationships Vendors Deliver Products
  9. 9. 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. 10. 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.
  11. 11. © 2016 Forrester Research, Inc. Reproduction Prohibited 11 Companies use CRM as a foundation of customer engagement $32B $24B 2015 2016 2017 63%
  12. 12. © 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
  13. 13. © 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
  14. 14. How can companies equip their customer- facing personnel with the right information about the customer in order to add value with each interaction?
  15. 15. © 2016 Forrester Research, Inc. Reproduction Prohibited 15 Issues With Data And Insights Rise To The Top
  16. 16. 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
  17. 17. © 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
  18. 18. © 2016 Forrester Research, Inc. Reproduction Prohibited 18 Today’s Expanded CRM Ecosystem Needs To Include Customer Retention Technology Marketing Customer Retention Customer Service Sales
  19. 19. Thank you forrester.com Kate Leggett Vice President, Principal Analyst kleggett@forrester.com Twitter: @kateleggett
  20. 20. Customer Success Technology Explained Guy Nirpaz Co-founder & CEO of Totango
  21. 21. Author of Farm Don’t Hunt The Definitive Guide to Customer Success Guy Nirpaz, Founder and CEO of Totango
  22. 22. 1. Customer Love 2. Customer Satisfaction 3. Customer engagement 4. Customer Retention & Upsell Customer Success Is?
  23. 23. Why new technology?
  24. 24. 1 - The Customer Base Constantly Changes 2 - Grovevs. Wild Forest
  25. 25. Constant Stream of Customer Data that makes meaning over time Stream of indicators Customer Health
  26. 26. 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
  27. 27. 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
  28. 28. Customer Success: Proactively Impact Customer Lifetime Value Onboarding Nurturing Renewal Expansion
  29. 29. Customer Success is farming
  30. 30. GrowingNew The RECURRING nature of the lifecycle determines the operating model z In Renew/Upsell Cancelled SAVING ACTIVITY
  31. 31. GrowingNew Nurture is what we do most of the time z In Renew/Upsell 30 days 30 days 305 days
  32. 32. 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
  33. 33. As your customer base grows, scaling Customer Success becomes complex and unpredictable
  34. 34. 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
  35. 35. © 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
  36. 36. Putting it Together – Integrate into the CRM Eco-System
  37. 37. 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
  38. 38. Simple, Smart, and Effective Customer Success Technology Team Performance Campaigns Retention Center Account Scorecard Mobile Portfolio Manager
  39. 39. Thank you!
  40. 40. 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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