SAP Hybris Cloud CRM Event - Go beyond traditional CRM, Cloud CRM
Customer Success: Going Beyond the Old CRM Model
Transcript of Customer Success: Going Beyond the Old CRM Model
AGENDA
Introductions
Part 1 – Going Beyond the Old CRM Model
Part 2 – Customer Success in Action at Sysomos
Q&A
WWW.CUSTOMERSUCCESSSUMMIT.COM
Learn from the pros.
Exchange ideas with your peers.
Leave with best practices to shape your customer success strategy for 2015.
Vendor neutral and thought leadership focused.
The ultimate place to discuss all things customer success.
KATE LEGGETT Guest Speaker
VP AND PRINCIPAL ANALYST, FORRESTER RESEARCH
@kateleggett
JEFF CANN SR. DIRECTOR OF CLIENT EXPERIENCE, SYSOMOS
@jeffcann
INTRODUCTIONS INTRODUCTIONS
Customer Success: Going Beyond the Old CRM Model Kate Leggett VP and Principal Analyst, Forrester Research @kateleggett [email protected]
© 2015 Forrester Research, Inc. Reproduction Prohibited 7
We Have Entered The “Age Of The Customer”
Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report
1900 1960 1990 2010
Age of Manufacturing Mass manufacturing
makes industrial powerhouses
successful
Age of Distribution Global connections and transportation
systems make distribution key
Age of Information Connected PCs and supply chains mean
those that control information flow dominate
Age of the Customer Empowered buyers demand a new level
of customer obsession
Beyond
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Our World Is Moving To A Subscription Economy
Credit: www.zuora.com
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May 2014 “Application Adoption Trends: The Rise Of SaaS”
In Particular, Corporate Application Software Spending Is Moving From On-Premises To SaaS
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Customers Have Become More Demanding, Staying Loyal To Companies Only When They Deliver Value
Product Focused Value Focused
Credit: www.zuora.com
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As companies grow, revenue from existing customers becomes a larger and larger part of the company’s economic value
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Retaining Customers Is As Important as Acquiring Them re
venu
e
time
95% retention rate - Acquired 600 customers - Lost 30
80% retention rate - Acquired 600 customers - Lost 120
$2M difference
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Customer success actively manages
customer journeys to reduce churn, increase existing revenue and influence new sales
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Customer Success Functions
Customer Success, as a functional role:
1. Actively manages and monitors the customer’s journey with your product
2. Leverages a health score to understand a customer’s progress
along the journey 3. Engages with customers at the right time using a combination of
high touch and automated customer nurturing activities
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Actively Managing Customer Success Starts With Managing The Customer’s Journey With Your Product
DECREASE VALUE
DECREASE VALUE
CHURN
CHURN
GROW VALUE
FIRST VALUE
START
INCREASE USERS INCREASE
USAGE EXPAND
FUNCTIONALITY
CHURN
ONGOING VALUE
ONBOARDING ADOPTION RENEWAL & UPSELL
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Active Customer Success Management Relies On A Customer’s “Health Score”
A health score is an indicator of a customer’s likelihood of churning. A health score is at the heart of understanding and managing customer success.
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A Health Score is Calculated From a Range Of Data
PRODUCT USAGE – Are users logging in and using the application regularly?
BUSINESS OUTCOMES – Is the customer getting the end result they purchased the product for?
SERVICE UTILIZATION – Is the customer fully utilizing their subscription?
CUSTOMER SATISFACTION – Feedback from customers and CSMs
SUPPORT & OPERATIONS – Outstanding support, SLA or invoicing issues
LEADING, OBJECTIVE INPUTS -
100% CUSTOMER COVERAGE
SUBJECTIVE INPUTS - LIMITED CUSTOMER
COVERAGE
1.
2.
3.
4.
5.
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DATA INSIGHTS
WORKFLOW
Leverage The Insights Gathered From Data And Create Success Workflows Dependent On Where The Customer Is In Their Journey
Aggregation Cleansing Visualization
Segmentation Personalization Discovery of most important attributes
Map to the customer journey: Onboarding
Adoption Retention
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Understand The Customer’s Journey With Your Product And Use The Right Data And Insights To Drive Engagement
For Users 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
Onboarding and product adoption • Who is using the product? Who is not?
• How to intervene to successfully onboard users?
Best practice adoption and retention
• Which features are being used?
• Are stickiest features being used?
• Are features used the right way?
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Nurture Your Customers Using A Combination of High, Low Touch And Automated Activities
› High touch › Low touch › Automated – customer nurturing – can include welcome, tips
& tricks, training videos, congratulations, and automated emails from CS team. › Interact with all customers using these methods
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Hire The Right People And Give Them The Right Tools To Do Their Job
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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
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Keep These Needs In Mind When Selecting A CSM Solution
› 1. Straightforward data collection – can pull the right data for you › 2. Data analysis and insights – takes raw data and applies data science
to give predictive insights › 3. Configurable reports and health score › 4. Detailed Analytics › 5. The right triggers and alerts › 6. A combination of automated plays (based on certain
triggers) and high touch engagement
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CUSTOMER SUCCESS STRATEGY
CUSTOMER SUCCESS
PROCESSES
CUSTOMER SUCCESS
MANAGERS
DATA FOR CUSTOMER SUCCESS
Customer Success Management Takes Coordinated Effort Across Four Dimensions
Thank you!Kate Leggett VP and Principal Analyst [email protected] @kateleggett
Jeff Cann: Sr. Director of Client Experience @jeffcann
January 28, 2015
© 2015 Sysomos -‐ All Rights Reserved sysomos.com | @sysomos
what’s next in social intelligence.
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SYSOMOS: SOCIAL INTELLIGENCE PLATFORM
• Founded in 2007
• Worlds most robust ad-‐hoc social media intelligence
plaZorm
• 1 Billion posts a day; 184 languages, 190 countries
• Ad hoc reports in seconds from over 1/2 Trillion
documents
• 8,000 users
• Single source for managing owned social media
accounts
Select KPI’s FY 2014
Segment Churn Reduc0on Overall -‐25% Agency -‐11%
Corporate -‐35% > GB -‐33%
> SMB -‐42% Channel -‐74%
• >95% renewal rates for Enterprise business
• 100% Employee Reteneon (18 months)
• Client requests for retainers
Select KPI’s FY 2014
The most important part of Solware-‐as-‐a-‐Service isn’t “Solware” it’s “Service”! Support, support, support! The only acceptable reason to lose a customer is death (bankruptcy) or marriage (acquisieon). Every Cloud company is in the service business, and therefore your customer service can be the difference between failure (churn) and huge success via high reteneon and up sells.
.
BESSEMER CLOUD COMPUTING LAW #7:
2014 2013 1:1 Account and Product
Support [email protected]
1 Owner: Onboarding, training, best praceces, day-‐to-‐day
Muleple touch points
Partner React
• Count the number of touches • Matching clients and people • You don’t lose customers you visit
BEST PRACTICES
We leverage an
engagement strategy to establish long term
profitable rela?onships with
clients
FOUR ELEMENTS OF THE SYSOMOS CUSTOMER ENGAGMENT STRATEGY
Engaged
Experience
Listen
Improve
• “I have a best friend at work” • Let personality and creaevity shine • Create a cross-‐dependent, metrics driven company
BEST PRACTICES
Engaged
Experience
Listen
Improve
Random Experiences
Inconsistent Uninteneonal
Predictable Experiences
C: Consistent I: Inteneonal Not differen+ated Not valued
Branded Customer Experiences
C: Consistent I: Inteneonal D: Differeneated V: Value to Customer
65% -‐ 85% of customers who switch to compeetors report being saesfied*
*Source: Why Sa?sfied Customers Defect, Jones and Sasser, Harvard Business Review, 1985
Engaged
Experience
Listen
Improve
• Everyone is a business owner • Never assume your customer is an expert
• Power of the reoccurring meeeng
BEST PRACTICES
Engaged
Experience
Listen
Improve
Social media monitoring, community management, campaign tracking, influencer ideneficaeon
Feature usage, license usage, client lifecycle and book of business management
Time and behavior based e-‐mail and in-‐app messaging.
NPS
Support portal and ecket creaeon
Bug and feature request management
Engaged
Experience
Listen
Improve
• Beware of integraeons for the sake of integraeons
• Show them you listen • Personalize the experience
BEST PRACTICES
Engaged
Experience
Listen
Improve
THANK YOU
KATE LEGGETT
@kateleggett
JEFF CANN @jeffcann
@totango