Mastering the Business of Customer Success

Mastering the Business of Customer Success

Guy NirpazCo-founder & CEO of Totango

In case of anemergency…

In case of anemergency…

Customer Successis growing fast! 100

80

60

40

20

02012 2013 2014 2015

Source:  Google  Trends

Guest Speakers from these notable companies :

We can see it by any market parametersincluding summit interest

2013 2014 2015 2016

100

300

950

1500+

Customer Success is maturing

We’ve learned a lot and we’re here to share

Practical Handbook forCustomer Success Leaders

Available on Amazon / iBook andfor Customer Success Summit 16 attendees

http://www.farmdonthunt.com

The model is not Hunting

Customer Success is Farming!

Young SaplingNeeds close care to take root

Growing TreeConstant nurturing & care

is needed to ensure a successful harvest season

And Harvest

GrowingNew

z

In Renew/Upsell

Cancelled

SAVING ACTIVITY

GrowingNew

The RECURRING nature of the lifecycle determines the operating model

z

In Renew/Upsell

Cancelled

SAVING ACTIVITY

Customer Value over

Customer ManagementSource: The Customer Success Manifesto

New

ON BOARDING ACTIVITY

Growing

NURTURINGACTIVITY

In Renew/Upsell

HARVESTING ACTIVITY

Cancelled

SAVING ACTIVITY

DRIVERS OUTCOMES

Customer Success is a business

and It’s NOT Customer Love

X

Customer Lifetime Value Calculation

+$10,000  /  year

+$7,000  /  year

-­$1,500  /  year

$5,500  /  year

-­$3,000  /  year

Annual Contract

Value

Cost to Deliver Service

Gross Margin

Customer Retention

Cost

Annual Profit

Lifetime Profit

YEAR  1(4.5K)NET  PROFIT

YEAR  2

$1.0KNET  PROFIT

Lifetime Profit

20%CHURN

14%CHURN

10%CHURN

5  YEAR  LIFETIME

$28.5KLIFETIMENET  PROFIT

$45.0KLIFETIMENET  PROFIT

$17.5KLIFETIMENET  PROFIT

7  YEAR  LIFETIME

10  YEAR  LIFETIME

FALLACIESof CUSTOMER SUCCESS3

Customer Success is

NOT Customer Support

X

1

Customer Success

is NOT Project ManagementX 2

Customer Success is

Not Pipeline Management

X3

The Challenges: Prioritization and Focus

1. Which customers need your attention…and why?

2. Where to invest your limited resources for best outcomes?

Portfolio Management is The Model for Customer Success Management

Customer Portfolio

At Risk

In Harvest

Growing

New

Drivers

Results

Risks

ONBOARDING

QBR / NURTURING

USAGE BASED CAMPAIGNS

SAVINGPROGRAMS ESCALATION

Drivers

PERIODIC EVENT-BASED

SUCCESS PROGRAMS & PLAYS

At Risk

In Harvest

Growing

New

The Engagement Model

Drivers

Results

Risks

ONBOARDING PROGRAMS

ESCALATION/SAVING PLAYS

Drivers

RETENTIONPROGRAMS

PERIODIC EVENT-BASED

SUCCESS PROGRAMS & PLAYS

At Risk

In Harvest

Growing

New

Engagement Model ofYoung CustomerSuccess Organization

Drivers

Results

Risks

ONBOARDING PROGRAMS

ONBOARDING PLAYS

ON-GOING NURTURING

USAGE BASED CAMPAIGNS

SAVINGPROGRAMS

ESCALATION/SAVING PLAYS

PLAYS

Drivers

RETENTIONPROGRAMS

PERIODIC EVENT-BASED

SUCCESS PROGRAMS & PLAYS

At Risk

In Harvest

Growing

New

Churn--------------------

Retention--------------------

Upsell

Save Rate--------------------Active Escalations

METRICS

Time to Value--------------------

Satisfaction

Results--------------------

Adoption--------------------

Utilization

The Portfolio Scorecard

Farm Don’t Hunt and Manage your Grove

Summary

Farm Don’t Hunt and Manage your Grove

Summary

Run Customer Success like a Business

Farm Don’t Hunt and Manage your Grove

Summary

Portfolio Management is the Operating Mode

Run Customer Success like a Business

We’ve got a huge future ahead!Profitable Customer Success Model

THANK YOU! guy@totango.com