Making Leaders Successful Every Day
Aug 23, 2014
Making Leaders Successful Every Day
Customer Success Evolves to the Next StageFour Steps To Institutionalizing CSM
Kate Leggett
Principal Analyst, Forrester Research
@kateleggett
We have entered the “age of the customer”
Source: June 6, 2011, “Competitive Strategy In The Age Of The Customer” Forrester report
We have entered the “age of the customer”
Source: June 6, 2011, “Competitive Strategy In The Age Of The Customer” Forrester report
Our world is moving to a subscription economy
Credit: www.zuora.com
Our world is moving to a subscription economy
© 2012 Forrester Research, Inc. Reproduction Prohibited
And the business model for technology is moving to subscriptions
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
14%
© 2012 Forrester Research, Inc. Reproduction Prohibited
And the business model for technology is moving to subscriptions
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
21%
© 2012 Forrester Research, Inc. Reproduction Prohibited
And the business model for technology is moving to subscriptions
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
13%
© 2012 Forrester Research, Inc. Reproduction Prohibited
The subscription model has tipped for many B2B software categories
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
© 2012 Forrester Research, Inc. Reproduction Prohibited
The subscription model has tipped for many B2B software categories
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
© 2012 Forrester Research, Inc. Reproduction Prohibited
The subscription model has tipped for many B2B software categories
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
And because of this relationships are becoming more important
Product Focused Relationship Focusedwww.zuora.com
Good relationships have business value
March 2012 “The Business Impact Of Customer Experience, 2012”
Customer success managers actively manage customer relationships to reduce churn, increase existing revenue and influence new sales
This business value can be easily quantified
HOW TO GET STARTED
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Interviews with customer success organizations told us that there are many challenges to overcome
Challenge Rating
Organizational structure governance
Finding the right skill sets
Accessing the right data
Operationally managing the CSM organization
Measuring the effectiveness of the team
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ENGAGEMENT STRATEGY
ENGAGEMENT PROCESSES
ENGAGERS ENGAGEMENT LEVERS
Customer success management takes coordinated effort across four dimensions
© 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT STRATEGY
ENGAGEMENT PROCESSES
ENGAGERS ENGAGEMENT LEVERS
Customer success management takes coordinated effort across four dimensions
21© 2012 Forrester Research, Inc. Reproduction Prohibited
Where are you in your growth?
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Where are you in your growth?
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Where are you in your growth?
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Tier your customers
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ENGAGEMENT STRATEGY
ENGAGEMENT PROCESSES
ENGAGERS ENGAGEMENT LEVERS
Customer success management takes coordinated effort across four dimensions
26© 2012 Forrester Research, Inc. Reproduction Prohibited
Define and standardize your processes
• Onboarding and product adoption • Who is using product? Who is not?• What features are being used?• Are stickiest features being used?
• Processes to drive adoption
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Define and standardize your processes
• Best practice education• What is the business goal of your customers?• What value they are getting from your product• How well are they aligned to best practices?
• Engagement meetings / Quarterly reviews• Standardize the processes to quantify and
communicate business value
28© 2012 Forrester Research, Inc. Reproduction Prohibited
Define and standardize your processes
• Managing at risk customers• Do you have a definition of at risk?
› Lack of product use› Difficulties with product (tickets, calls)› Lack of engagement
• What are the processes to follow for at risk customers?
• What is the intervention timeline? Who is responsible?
© 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT STRATEGY
ENGAGEMENT PROCESSES
ENGAGERS ENGAGEMENT LEVERS
Customer success management takes coordinated effort across four dimensions
30© 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
CEO
Customer service OperationsSales
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Where does your CSM group live?
CEO
Customer service OperationsSales
Low-level of product complexityNot responsible for new salesResponsible for ongoing success of accounts
32© 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
CEO
Customer service OperationsSales
Low-level of product complexityResponsible for ongoing success of accountsWork hand-in-hand with sales, but not responsible for new sales
Goaled on retention and
expansion measures
33© 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
CEO
Customer service OperationsSales
More complex product“Trusted advisor” with good product and domain knowledgeFocused on customer satisfaction and retentionMust have good relationship with sales
34© 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
CEO
Customer service OperationsSales
More complex product“Trusted advisor” with good product and domain knowledgeFocused on customer satisfaction and retentionMust have good relationship with sales
No standard measure of success –
renewals, revenue expansion
35© 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
CEO
Customer service OperationsSales
More complex product and more mature organizationClear delineation of responsibility: the CSM owns the customer, Sales is responsible for new business, customer service is responsible for support
36© 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
CEO
Customer service OperationsSales
More complex product and more mature organizationClear delineation of responsibility: the CSM owns the customer, Sales is responsible for new business, customer service is responsible for support
Goaled on customer retention
37© 2012 Forrester Research, Inc. Reproduction Prohibited
Who makes a good 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
Account managers
© 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT STRATEGY
ENGAGEMENT PROCESSES
ENGAGERS ENGAGEMENT LEVERS
Customer success management takes coordinated effort across four dimensions
© 2012 Forrester Research, Inc. Reproduction Prohibited
What data do you need?
39
Customer
Goal
Inactive users
Provisioned users
ContractTerms
Renewal
Realized economic
value
Audit records
Feedback
Advocacy
Support feedbackCustomer
feedback
Active users
Measures of success
Features
Alerts
Calls and tickets
Onboarding
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What do you do with data?
Integration Validation Visualization
Analytics Exploration
Workflow
Data
Insights
Action
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The Advanced Playbook
LOBData
Enterprise Insights
Outside-inAction
• Customer360• Alerts
• Surveys• Automated Email
• Health Scorecards• Playbooks• Workflow
• Embedded Apps
• External Sponsor Alerts• Automated Customer
Presentations• Mobile
• Data Science
© 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT STRATEGY
ENGAGEMENT PROCESSES
ENGAGERS ENGAGEMENT LEVERS
Customer success management takes coordinated effort across four dimensions
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