©2018 Gainsight and The Boston Consulting Group. All Rights Reserved. ©2018 Gainsight and The Boston Consulting Group. All Rights Reserved. FINDINGS ON CUSTOMER SUCCESS BENCHMARKS
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
FINDINGS ON CUSTOMER
SUCCESS BENCHMARKS
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
We too dream of
Customer Success
SCOTT
GOLDEN
Gainsight
MEINI
HEUBERGER
BCG
PHILLIP
ANDERSEN
BCG
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
Questions we often hear ...
What is the role of Customer Success along the entire customer lifecycle?
What drives effective collaboration between Customer Success & other roles?
What org & funding models support a close collaboration?
How does the role & collaboration change if provided for a fee vs. for free?
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Objectives for today
Data Insights Discussion
Note: Data from survey with mainly Small to Mid-sized businesses in Tech sector, Insights from working with Large Enterprise businesses across industries
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ed.
Roles6 areas of
focus
Workflows Accountability
Organization Funding Monetization
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
Pro
active t
rain
ing/
guid
ance
Impl. o
vers
ight/
QA
Price n
egotia
tio
n
Busin
ess o
utc
om
e
pla
nnin
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revie
w
Adoptio
n m
easure
ment
Imple
menta
tio
n
Price q
uotin
g
Consultin
g s
erv
ices
Initia
l tr
ain
ing
Te
ch s
upport
QA
&
issue e
scala
tio
n
Custo
miz
atio
n
Expansio
n o
pport
unity
identificatio
n
Adoptio
n p
lannin
g
Pre
-sale
s s
olu
tio
nin
g
Expansio
n o
pport
unity
pro
cessin
g
Expansio
n
price n
egotia
tio
n
Contr
act
monitorin
g
Contr
act
managem
ent
Renew
al m
anagem
ent
Roles
Customer Success focuses on Adoption & Renewal
Source: BCG Customer Success Survey, March 2018, n=59
No CS CS Main ExecutorCS Contributor
Land Deploy Adopt Expand Renew
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Renew
al m
anagem
ent
Contr
act
managem
ent
Contr
act
monitorin
g
Expansio
n
price n
egotia
tio
n
Expansio
n o
pport
unity
pro
cessin
g
Expansio
n o
pport
unity
identificatio
n
Te
ch s
upport
QA
&
issue e
scala
tio
n
Busin
ess o
utc
om
e
pla
nnin
g &
revie
w
Pro
active t
rain
ing/
guid
ance
Adoptio
n m
easure
ment
Adoptio
n p
lannin
g
Initia
l tr
ain
ing
Consultin
g s
erv
ices
Impl. o
vers
ight/
QA
Custo
miz
atio
n
Imple
menta
tio
n
Price n
egotia
tio
n
Price q
uotin
g
Pre
-sale
s s
olu
tio
nin
g
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
Roles
Split ownership for some lifecycle stages
Customer success
Professional Services
SalesMarketing
Technical support
Source: BCG Customer Success Survey, March 2018, n=59
Land Deploy Adopt Expand Renew
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Price n
egotia
tio
n
Price q
uotin
g
Renew
al m
anagem
ent
Imple
menta
tio
n
Custo
miz
atio
n
Impl. o
vers
ight/
QA
Consultin
g s
erv
ices
Initia
l tr
ain
ing
Adoptio
n p
lannin
g
Adoptio
n m
easure
ment
Pro
active t
rain
ing/
guid
ance
Busin
ess o
utc
om
e
pla
nnin
g &
revie
w
Te
ch s
upport
QA
&
issue e
scala
tio
n
Expansio
n o
pport
unity
identificatio
n
Expansio
n o
pport
unity
pro
cessin
g
Expansio
n
price n
egotia
tio
n
Contr
act
monitorin
g
Contr
act
managem
ent
Pre
-sale
s s
olu
tio
nin
g
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
Roles
Customer lifecycle management is a team sport
Source: BCG Customer Success Survey, March 2018, n=59
Land Deploy Adopt Expand Renew
1 internal role0 internal roles 2 & more internal roles
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Source: BCG Customer Success Survey, March 2018, n=59
Effective collaboration with most roles
Product
development/
engineering
Product
management
Technical
support
Marketing Professional
services
Sales
Ineffective
Neutral
Rather ineffective
Effective
Rather effective
Roles
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
Roles
Source: BCG Customer Success Survey, March 2018, n=59
... driven by frequency of interaction
Product
development/
engineering
SalesMarketing Product
management
Technical
support
Professional
services
Daily
Rarely
Quarterly
Monthly
Weekly
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
Several key
workflows for
Customer
Success
Adoption
planning
Adoption
measurement
Proactive product
training / guidance
Business outcome
planning / review
Expansion oppty
identification
Expansion oppty
nurturing
Renewal
management
Workflows
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Companies have 4+ cross-functionally designed workflows
Source: BCG Customer Success Survey, March 2018, n=59
12
8
10
8
3
2
4
8
7 Workflows6 Workflows5 Workflows4 Workflows3 Workflows2 Workflows1 WorkflowNo Workflow
Workflows
The higher
the # of
workflows,
the better the
collaboration
between CS
and other
roles
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Source: BCG Customer Success Survey, March 2018, n=59
Many companies without cross-functionally designed workflows
42% 42% 42% 40%51%
25% 24%
35%27%
36%29%
20%
25% 24%
24% 31%22%
31% 29%
49% 53%
Adoption
measurement
Business
outcome planning
and review
Proactive product
training/guidance
Renewal
management
Expansion
opportunity
nurturing
Adoption planning Expansion
opportunity
identification
Workflows established, business impact recorded Workflows established, no business impact recorded No workflows established
Workflows
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Workflows
Source: BCG Customer Success Survey, March 2018, n=59
Positive impact from establishing workflows
57%
70%
79%
63%
71%
Customer satisfaction/NPS
Value added to customer
Scope of adoption/ utilization
Scale of adoption/ utilization
% of advocates in customer base
Business metrics Leading indicators
84%
78%
87%Expansion Rate
Revenue Renewal Rate
Account Revenue Growth
DecreaseNeutralIncrease
©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.
Source: BCG Customer Success Survey, March 2018, n=59
... and business performance impact is significant
Account Revenue Growth Revenue Renewal Rate Expansion Rate
Neutral + 1 – 5% + 10 – 20%+ 5 – 10% 20+%
Workflows
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Various critical
lifecycle metrics
Land offerings /
accounts
Initial
adoption
Ongoing adoption /
consumption
Expansion
rate
Renewal
rate
Customer
engagement
Customer
satisfaction
Overall account
growth
Source: BCG Customer Success Survey, March 2018, n=59
Accountability
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Accountability
1. Weighted average based on survey respondents Source: BCG Customer Success Survey, March 2018, n=59
Customer Success skews towards more metrics
Avg.# of metrics1
Marketing 1.5
Sales 2.9
Professional Services 2.0
Technical Support 2.0
Customer Success 4.9
Project Management 1.8
Product Dev / Engineering 1.5
1 metric 8 metrics
company has 2
of these metrics
for each role
1
do not have at least
1 of these metrics
for each role
75%
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Accountability
Source: BCG Customer Success Survey, March 2018, n=59
Customer Success incentivized based on Renewal & Expansion
74%
60%
51%
49%
47%
45%
32%
13%
Overall account growth
Customer engagement
Customer satisfaction
Expansion rate
Ongoing adoption / consumption
Initial adoption
Renewal rate
Land of new offerings / accounts
Business Outcome
Adoption process
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Accountability
Source: BCG Customer Success Survey, March 2018, n=59
Many companies added some
of these metrics ...
... and experienced a positive
impact on business outcome
Revenue
Renewal Rate
Account
Revenue
Growth
Expansion
Rate
+ 5 – 10%
+ 1 – 5%
Neutral
Negative
20+%
+ 10 – 20%Product management 17%
Engineering 11%
Customer success
Technical support
68%
11%
34%
Marketing
26%
Professional services 32%
Sales
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Organizational
model
changed reporting
structure of
Customer Success
in the past
>50%
Source: BCG Customer Success Survey, March 2018, n=59
Organization
38%
25%
13%
9%
6%Business Unit
Sales
Chief Revenue Office
CEO
Support & Services
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Source: BCG Customer Success Survey, March 2018, n=59
Organization
CEO
29
29
14
14Prevent competing priorities
Accommodate Exec preference
Improve ’decision power’
Improve collaboration
Shift of focus to drive growth
Sales
Support &
ServicesShift to ...
29
24
14
10
14
25
38
25
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Funding model
Source: BCG Customer Success Survey, March 2018, n=59
19%
15%
30%
36%
I don’t knowCOGS CombinationOpex
Funding
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Source: BCG Customer Success Survey, March 2018, n=59
Funding
CEO
Opex
COGS
Don't know
Comb. COGS
Don't know
Sales
Don't know
Comb.
COGS
Opex
Opex
Support &
Services
Funding model not driven
by current org structure ...
History/origin of function
Characteristics of activities
Impact on gross margin
Other
Funding sustainability
... but by the origin of the
function
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Source: BCG Customer Success Survey, March 2018, n=59
<15%changed the funding
model of Customer
Success in the past
... and changing doesn't do much
50% experienced a
positive impact
50:50 in changes to
Opex and COGS
Funding
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Monetization
model
Source: BCG Customer Success Survey, March 2018, n=59
of companies
charge for
some/ all activities
¼ of companies provide all Customer
Success activities for free
¾
Monetization
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Source: BCG Customer Success Survey, March 2018, n=59
Implementation
Customization
Consulting Services
Initial Training
Mostly charged
Mostlycombination of fee & free
Mostly for free
Proactive guidance/
training
Adoption planning
Adoption measurement
Business outcome plan
& review
Support issue
escalation
Monetization
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