Is Customer Success Worth It?
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How can you measure the value of customer success to your organization? What is the actual bottom-line dollar value customer success will have for your company? Join Dan Steinman, Chief Customer Officer at Gainsight, and special guest Kate Leggett, VP and Principal Analyst at Forrester Research to learn the answers to these questions and more. Dan and Kate will discuss the economic value customer success has had on various industries and what potential value it holds for the future of your company. This data-driven-webinar will cover topics such as: The economic value model of customer success for SaaS, financial services, and other industries How to lead your company in customer success The benefits of adopting customer success as an organization
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Is Customer Success Worth It?
- 1. ©2015 Gainsight. All Rights Reserved. IS CUSTOMER SUCCESS WORTH IT? Featuring:
- 2. ©2015 Gainsight. All Rights Reserved. Dan Steinman Chief Customer Officer Gainsight Kate Leggett Vice President & Principal Analyst Forrester Featuring:
- 3. ©2015 Gainsight. All Rights Reserved.
- 4. ©2015 Gainsight. All Rights Reserved.
- 5. ©2015 Gainsight. All Rights Reserved.
- 6. ©2015 Gainsight. All Rights Reserved.
- 7. ©2015 Gainsight. All Rights Reserved.
- 9. Transactional Economy Subscription Economy Vendor Success Customer Success Vendor Success Customer Success The New Chasm
- 10. © 2016 Forrester Research, Inc. Reproduction Prohibited 10 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
- 11. © 2016 Forrester Research, Inc. Reproduction Prohibited 11 Our World Is Moving To A Subscription Economy Credit: www.zuora.com
- 12. © 2016 Forrester Research, Inc. Reproduction Prohibited 12 January 2014 “TechRadar™: Software-As-A-Service, Q1 2014” The Subscription Model Has Tipped For Many B2B Software Categories
- 13. © 2016 Forrester Research, Inc. Reproduction Prohibited 13 The SaaS Boom for B2B Software Shows No Sign Of Slowdown
- 14. © 2016 Forrester Research, Inc. Reproduction Prohibited 14 EVERYTHING Will Be Part Of The Subscription Economy
- 15. © 2016 Forrester Research, Inc. Reproduction Prohibited 15 And Because Of This Relationships - And Outcomes - Are Becoming More Important Product Focused Relationship Focused
- 17. © 2016 Forrester Research, Inc. Reproduction Prohibited 17 Onboarding Driving adoption Recognizing expansion opportunities Manage The Customer’s Journey With Your Product During Their Lifecycle Converting trials
- 18. © 2016 Forrester Research, Inc. Reproduction Prohibited 18 Source: June 27, 2014 “What Drives A Profitable Customer Experience” Forrester report Good Customer Experiences are Good for Business Retention loyalty Enrichment loyalty Advocacy loyalty The likelihood that a customer will keep existing business with the company The likelihood that a customer will buy additional products and services from the company The likelihood that a customer will recommend the company to others
- 19. © 2015 Forrester Research, Inc. Reproduction Prohibited 19 Customer success managers actively manage customer relationships to reduce churn, increase existing revenue and influence new sales
- 21. © 2016 Forrester Research, Inc. Reproduction Prohibited 21 As companies grow, revenue from existing customers becomes a larger and larger part of the company’s economic value
- 22. Power Shift
- 23. David Skok Matrix Partners http://www.forentrepreneurs.com/why-churn-is-critical-in-saas/ Customer Success Drives First-order Growth
- 24. ©2015 Gainsight. All Rights Reserved. Source: http://www.saastr.com/its-not-just-cltv-its-your-trgcltv-that-matters-total-all-in-revenue- generated-by-your-customer/ Customer Success Drives Second-order Growth
- 25. ©2015 Gainsight. All Rights Reserved. 0x 5x 15x 20x EV/RevenueMultiple Dollar Net Renewal Rate 60% 70% 80% 90% 100% 110% 120% Source: Altimeter and FactSet 10/2014 10x 7X 15X Customer Success Drives Third-order Value
- 26. © 2015 Forrester Research, Inc. Reproduction Prohibited 26 CUSTOMER SUCCESS STRATEGY CUSTOMER SUCCESS DATA CUSTOMER SUCCESS PROCESSES CUSTOMER SUCCESS MANAGERS Customer Success Takes Coordinated Effort Across Four Dimensions
- 27. © 2016 Forrester Research, Inc. Reproduction Prohibited 27 Not All Customers Get Equal Treatment Strategic Accounts Commercial Accounts Value Accounts
- 28. © 2016 Forrester Research, Inc. Reproduction Prohibited 28 Not All Customers Get Equal Treatment Strategic Accounts Commercial Accounts Value Accounts High Touch QBR. Health checks Best practice education Minimal level of automation Low Touch Automated interactions Best practice education Automated Touch Webinars Newsletters Campaigns
- 29. © 2016 Forrester Research, Inc. Reproduction Prohibited 29 Leverage The Insights Gathered From Data And Create Success Workflows DATA INSIGHTS WORKFLOW Aggregation Cleansing Visualization Segmentation Personalization Discovery Map to the customer journey: Onboarding Adoption Retention
- 30. © 2016 Forrester Research, Inc. Reproduction Prohibited 30 Choose The Right Profile For A Customer Success Manager Passionate for serving customers Relationship builders Well organized and good listening skills Good at conflict resolution Proactive and can-do attitude Technical enough Best practice knowledge Domain expertise Work at all levels of an organization
- 31. © 2015 Forrester Research, Inc. Reproduction Prohibited 31 Customer Success Benefits: If Done Right Delivers Predictable Outcomes For Users › Onboarding and product adoption • Who is using product? Who is not? • How to intervene to successfully onboard users › Best practice adoption and retention • What features are being used? • Are stickiest features being used? • Are features used the right way For Stakeholders › Quantify the value of the product and how it helps realize business goals • How is product being used? • What was the products-time-to-value • What is the return on investment • What adjustments to contracts make sense › Risk management • Early warnings • Intervention workflows
- 32. ©2015 Gainsight. All Rights Reserved.
- 33. ©2015 Gainsight. All Rights Reserved. Demonstrate the value you deliver to your customers to promote adoption, advocacy, and growth DEMONSTRATE Value How Will You Measure Success in 2016? 5 Pillars of Customer Success Build a consistent, effective customer journey through one-to-many strategies and high-impact, timely one-on-one interactions OPERATIONALIZE Customer Lifecycle Build a customer-focused organization by improving cross-functional coordination and measuring impact Make it easy to spot and act on opportunities for growth and candidates for advocacy DEMONSTRATE Value OPERATIONALIZE Customer Lifecycle ENABLE Cross-functional Visibility DRIVE Expansion & Advocacy Proactively identify signs of customer risk and collaborate cross-functionally to address issues MANAGE Customer Risk
- 34. ©2015 Gainsight. All Rights Reserved. We don’t have a consistent way to track customers’ goals throughout their lifecycle We don’t have a scalable way to show customers how they use our product/service We are seeing churn due to customers not seeing ROI or business value We need to give management visibility into CSM efforts and impact We need a way to report on retention, upsell, and churn We need a way to forecast retention, upsell, and churn We don’t know which accounts are at risk, and which we can impact or de-prioritize` We are seeing churn due to low adoption We are seeing churn due to low-value adoption (e.g. not using new or advanced features) We are seeing churn due to functionality gaps in the product We are seeing churn due to product stability or quality issues We are seeing churn due to poor customer satisfaction We are seeing churn due to loss of our key customer champion We are seeing churn due to customer service issues Our field reps and execs are sometimes blindsided by customer risks Our sales reps and account managers are sometimes blindsided by customer risks during a sales cycle We don’t have a consistent view of customer health across our company We don’t know what’s driving risk and success in our customer base We need a way to track customer relationships across complex customers, multiple products We need a consistent way to schedule, and get reminded of, regular customer interactions such as EBRs and renewals We are seeing customer satisfaction issues due to poor hand-offs from sales to CSM We spend too much time preparing for Executive Business Reviews CSMs have too many repetitive interactions with customers It takes customer-facing team members too long to prepare for customer meetings We need to increase the ratio of accounts a CSM can handle and reduce the skill set required of a CSM to make CSM more cost effective We don’t know which customers to use as references and in marketing activities We have no way to track our sponsors as they go to new companies in a scalable way We don’t know which customers are trending toward needing more capacity It’s too manual for us to spot customer overages We don’t know which customers are good candidates for upsell We don’t know how to turn happy customers into advocates Business Challenges OPERATIONALIZE Customer Lifecycle MANAGE Customer Risk DRIVE Expansion & Advocacy ENABLE Cross-Functional Visibility DEMONSTRATE Value 1 2 3 4 5 6 1 2 3 4 5 6 7 8 1 2 3 4 5 6 1 2 3 4 5 1 2 3 4 5 6
- 35. ©2015 Gainsight. All Rights Reserved.©2015 Gainsight. All Rights Reserved.
- 36. ©2015 Gainsight. All Rights Reserved. Kate Leggett Vice President & Principal Analyst Forrester @kateleggett kleggett@forrester.com Dan Steinman Chief Customer Officer Gainsight @dantsteinman dsteinman@gainsight.com Questions?