www.tsia.com Shifting to an Outcomefocused world Peter Armaly Vice President of Research, Customer Success
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www.tsia.com
Shifting to an Outcome-focused world
Peter ArmalyVice President of Research, Customer Success
www.tsia.com
What’s an Outcome?
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A product
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An experience
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A train… or… a better-functioning city
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Food… or… national security
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Customers care about having a good experience with the vendor but they care more about achieving
their expected Outcomes
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Share price rises, increase in valuation, program delivered on time, health improves, life is more fun, etc
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A multitude of other business and personal goals
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Customers reward companies with loyalty when their Outcomes are achieved
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Otherwise, they punish them
11TSIA Technology and Services 50 - 2016
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Market Forces in Play
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Profitable Legacy Model XaaS 2.0
Commoditized Legacy Model XaaS 1.0
OEM Scenarios
Demand for New Consumption Models
Profitability of
Core Offering
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State of The Industry
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10% 10%
60% 20%
OEM Scenarios
Demand for New Consumption Models
Profitability of
Core Offering
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Year over year persistently high Churn rates
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So why aren’t CSMs spending more time on driving Adoption activities which, in turn, drive platform stickiness and higher rates of loyalty?
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Many companies can monitor their customers’ solution consumption
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But only a minority systematically use the data
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To move, you need to figure out what customers value and deliver that before you can gain
trust and establish credibility
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You need Customer Success to drive this
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Unique Traits of Customer Success
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• Close proximity to customers• Responsible for driving adoption and ensuring customers stay on the platform• Are proactive and curious• Are process and data-‐driven• Consider the customer holistically• Are good herders• Desire to help the customer grow in capability and ability to accomplish more
CSM Activities
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Hard to reconcile. Only 25% of respondents
employ predictive analytics
capabilities
So few yet this is a foundational element of
profiling and of Outcome
Engineering
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What next?
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The need to focus
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1.0 Organizational Strategy and Financial
Performance
1.1 Strategy and Goals
1.2 Business Performance Management
2.0 Opportunity Management
2.1 Account Segmentation
2.2 Opportunity Management: Renew
2.3 Opportunity Management: Expand
3.0
Customer Success Delivery
3.1 Customer Onboarding
3.2 Value and Visioning
3.3 Enablement
3.4 Adoption Monitoring
3.5 Opportunity Identification
4.0 Success Operations
4.1 Resource Management
4.2 Talent Management
4.3 Customer Analytics
4.4 Contract Analytics
4.5 Infrastructure
5.0 Success Engineering
5.1 Success Engineering Function
5.2 Product Portfolio Alignment
5.3 Solution Development
5.4 Intellectual Asset Management
5.5 Value Engineering
5.6 Product Integration
6.0 Success Marketing
6.1 Success Marketing Function
6.2 Strategic Pricing
6.3 Services Rollout
6.4 Customer Experience
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Okay, so how do we drive Outcomes?
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Value realization journey mapping
Listen to your customers
Build profiles of customers based on the now and to-‐be stages
Determine what’s systematically required to move them to that next stage
The Value Realization Journey
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Stage 1 Stage 2 Stage 3 Stage 4
Value realized by the customer
TSIA – Outcome Engineering 2015
HOW is Outcome Engineering Done at Scale?
Right Framework
Right Outcomes
Right Tools
Right Customer
What is the target outcome?
What capabilities are required to achieve the outcome?
What is the financial impact?
What are the KPIs that predict financial impact will occur?
What technology improves the KPIs?
What practices are required to leverage the technology?
What roles required to run the technology and practices?
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Things to remember
• Outcomes depend on perspective• Pressure on to precisely understand the customer and to deliver those outcomes, at scale
• Customer Success is best positioned to drive this but they need to begin to focus
• A structure and methodology is required to make it happen
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