Customer Success C o m p a n y M i n d s e t

John Cabri jcabri@yahoo.com

CONFIRM Tony Hsieh

We really don’t think that customer service is an expense that

you should try to minimize, it’s really an investment in your

brand. The telephone is one of the best branding devices out

there. If you wow customers during that interaction, that’s

something they’re going to remember for a very long time and

tell their friends about.

Tony Hsieh CEO Zappos

CONFIRM Bad News Travels Far and Fast

A new survey shows that a satisfied customer might tell five

friends and family members about their pleasant experience,

but an unhappy customer is more likely to share the bad news

with up to 100 people.

Colloquy http://bit.ly/1b1QsYn

CONFIRM Presuppositions

We are in an era of partnered value creation (for the user/customer). Therefore;

• Customer success is driven from the top and must be an integral part of the corporate culture. Every part of the organization must understand its role

• Companies that adopt a Customer Success Framework across their organization, allowing for diagnostic measures and enabling good prescriptive analysis, have a tremendous advantage.

• Employee camaraderie and fun working environments create happy and energetic employees. This has a contagious affect on customers.

• Customer success doesn’t begin AFTER the sale; it begins BEFORE the sale.

• Understanding “WHY” a customer bought and the expected value they anticipate deriving is critical.

• It is important to remember that customer relationships are both art and science. The science side can be taught. However, the art cannot be overstated.

• The company that creates the most customer value gets the most business.

CONFIRM Foundations

• Be fanatical about the customer’s success

• Create an engaging work environment

• Establish incentive plans that focus on Customer Success across the company

• Be profitable

CONFIRM

Product Marketing

Sales

On-boarding Adoption

Account Management

Sales occur: Perceived Value > Cost Retention occurs: Realized Value > Perceived Value Success occurs: CLTV > CARC* * CARC – Customer Acquisition and Retention Costs

Success Ecosystem

CONFIRM

Opportunity for first win and to reinforce purchase decision.

Engagement Steps

Onboarding

Adoption/Usage

Engaged User

Loyal Customer

Disseminate best practices and possible consulting. Show how “WHY” can be achieved.

Expected value has not been established/realized. Find GAP(S) and begin again.

Expected value has been realized or exceeded

Communication & Workflows

Key P

erfo

rman

ce In

dicato

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Each step is an opportunity to establish value. The goal should be to minimize time to value, but NOT at the expense of the customer.

CONFIRM Loyalty Matrix

Value Derived Greater than Expected Less than Expected

Interactio

ns

Positive

Negative

Promoter

Saboteur

Loyal / Evangelist

Satisfied

Pessimist

Detractor Hostage

Defector

Defector

CONFIRM Overlooked Customer

Touch Points

Customer Success must be viewed holistically across all touch points of the company. Interactions should always be desinged to increase your customers’ realized value of your company or its product/service.

Partners Development

Deployment Executives

Other G&A Product Management

CONFIRM Macro View CS Playbook

CONFIRM

Usage • Peak usage (#) • Peak usage (time of day) • Users as a percent of

licenses sold • User minutes (logged in) • Usage Trends

Issues Possibly Leading to Churn • Downloading Data • Credit Card Expiration • Close Account Page Visits • Users Leaving Company • Changes in Account Users/

Administrators

Operational • Incidents (#/by channel)

• Service calls (#/time of day) • Hold times • Abandonment rates • Talk Time

• Share of Voice • Application/Website: Trouble

Tickets (#/time of day) • Website: Help “Chat” • Website: Help Library

• Clicks to Resolution • Mean Time to Resolution (MTR) • First call resolution • Escalation Rates • Incidents opened and resolved

(within a specific time frame: per hour/per day)

Sample Metrics

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Financial • Gross Margin • Contribution Margin • Revenue Saved • Burden Rate

• Hourly/Quarterly • % of Licenses • % of Customers

• Fully Burdened Cost per Incident • Training

• Days per Year • Cost

Sample Metrics

Quality • Surveys

• Post Incident • Self-service/Community

Experience • Relationship

• Across the company • Specific areas of the

company • Loyalty • Churn

CONFIRM

NOTE: This is a macro representation. It may require additional items or modifications to existing items.

Example: Revenue Operations

CONFIRM

Company-wide (examples): • Hiring and On-Boarding Customer-facing Personnel (Sales, Executives, Marketing, Customer

Success, Others) • Go-to-Market Strategy (Product across Geos, Verticals) • Best Practices (Geos, Personas, Verticals, Stages) • Content creation and strategy (Geos, Verticals, Personas) • Mobile-enablement

Components: • Process • Tools • Enablement Roles • Content • Best Practice & Resources

Goals: • Value of what is delivered exceeds the perceived value of what is being acquired • Increase revenue (CLTV) while decreasing the cost of sale/cost of retention (CARC) • Sales reps become consultants, selling value over price/Post-Sales teams drive value

optimization • Increase win rates while increasing deal size (upsell/cross-sell) • Increase win rates / reduce churn • Reduce length of sales cycle / improve time to value

Customer Success & Revenue Enablement