Internal | SAP Employees and Partners Only

Nikhil Lalchandani, Benjamin Szuber

March 12, 2019

Customer Success Mindset in the CloudThe Importance of Customer Engagement

SMB Innovation Summit 2019

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What is Customer Success

Keep the promise Deliver a simple,

consistent experience

Empower employees

by delivering customer success

and business outcomes

Partners together with SAP

across the entire customer

journey

to always put the

Customer First

Cloud = Subscription Economy

▪ Economic value is realized over time, instead of upfront at initial sale

▪ Customer relationship and customer engagement is key to success

and has a greater economic impact

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Churn is the issue in cloud

€1M revenue, 4 yearly renewals, 3 different renewal rates

90%

656K

85%

522K

80%

410K

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What our Customers want (not only in the cloud)

Optimize

Implement

Buy &

Renew

(Re-)

SelectMeasure

Identify needs

(Re-) Consider

Buying Using

Advocate

▪ Proactive success engagement

▪ Across the entire customer lifecycle

▪ Focused on value-driven outcomes

▪ Delivered via a holistic and harmonized experience

▪ Consistency in the SAP relationship

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Customer Success – CEE Driven Methodology

Proactive

Action

InsightsFocus on result

driven outcomes

Organize

Around

Customer

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In Cloud, the customer engagement starts after a Cloud deal is ‘closed’. Key activities include Onboarding the customer

to the new solution, driving Adoption and value realization, identifying opportunities for Expansion and securing the

Renewal

• Protect Renewal Revenue

This discipline is forward looking and provides structure to help customers

realize desired business outcomes and mitigate renewal risks

• Up/cross sell revenue growth

When executed well, these efforts result in expansion of current solutions

(upsell) and generation of new solution opportunities (cross-sell)

• Adoption & Referenceability

Adoption strategy as a discipline along the customer lifecycle phases helps

manage customer success resulting in a loyal, referenceable account

• Issue Escalation & Advocacy

Identification and action on issues as they arise throughout the lifecycle

to prevent escalation, avoid concessions and improve customer satisfaction

Customer Engagement Management | Our Mission

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Onboarding

Welcome mail

Implementation governance

Introduction of services,

tools, resources & training

Pre go-live checks

Usage & Adoption

Engagement Planning

Track and measure solution

usage & adoption

Verify delivery on value prop

Health Assessment

Issues & Escalations

Safeguard escalations

Issue resolution

How to questions

Value Realization

Success monitoring

Expand knowledge via

events, community

engagement & user group

engagement

Customer reference ability

Release & Roadmap

Develop solution roadmap

Position new features/topics

Renewal

Safeguard upcoming renewals

Renewal at Risk assessment

Identify over-usage, upsell, cross-sell

opportunities

Ensure license compliance

Provide audit report (certification)

ADOPT & OPTIMIZEONBOARD RENEWONBOARD

Customer Lifecycle Management | Sample Activities

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What does it take to keep a customer happy and ensure high renewal rates?

Incident & Escalation Support

Best Practices & How-to’s

Knowledge Brokering

System Information

Feedback Channel into product

management and development

Optimized Usage &

License Compliance

Solution Adoption

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Customer and Partner Engagement Office for Post Sales Support

Direct Customers

25%Indirect Customers

75%

Customer Engagement Office

▪ Customer Engagement Executives

(CEE) partnering with customers

post sales driving on-boarding,

adoption and usage of the product

▪ Securing renewals, identifying

upsell and expansion opportunities

through personal and digital

programs

▪ ~40% of overall renewal ACV (~30M€)

Partner Engagement Office

▪ Partner Engagement Advisors

(PEA) for post sales support to

safeguard renewals of indirect

customers

▪ Education of partners on SAP

customer engagement philosophy

▪ Sharing renewal related information

to safeguard go-live, optimal usage

and renewal

▪ ~60% of overall renewal ACV (~44M€)

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Roles and Responsibilities in After-Sales Customer Engagement

SAP’s Customer Engagement Executive (CEE)

• Focus | direct SAP customers only

• Same as Partner Customer Engagement Executive

Partner’s Customer Engagement Executive (CEE)

• Focus | partner’s customers including cloud choice profit customers

• Post-sale relationship management and customer satisfaction

• Strategic governance, regular updates and meetings

• Commercial management & renewals

• Solution adoption/consumption measurement

• Business outcomes & value delivery

SAP’s Partner Engagement Advisor (PEA)

• Focus | Business ByDesign partner

• Post sales support for partners

• to safeguard go live, optimal usage and renewal of their customers

• share SAP customer engagement philosophy

• Share renewal related information, best practices and how-to’s

• Escalation and incident support

• Feedback channel into product management and development

NEW ROLE

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Call To Action

Share

Customer

Success Stories

Live

Customer

Success

Understand

Customer

Success

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Customer and Partner Engagement Office for Post Sales Support

The Team

NA LA EMEA / MEE APJ

Erika Lopez

Jacqueline Stevenson²

Roberto Carmona

Ruddy Avalos

Shruthi Prakash Shetty

Tariq Hossein

Claudia Feuerstein

Frank Israel

Gisela Decker-Schultheis³

Helena Hammerschmid

Johanna Schuetterle²

Jutta Fleddermann⁴

Kai Ziegenhals

Marco Ullrich

Melanie Roode

Michael Staub

Oliver Klein

Petra Maria Heeb (CH)

Steffen Six

Tamara Wolf ⁵

Verena Wendt

Wang (Cheng) Chun Wong

Ben Szuber (ANZ)

Nikhil Lalchandani (India)

Wendy Zhang (GCR)

PEA || CEE

2 reference program

3 tenant provisioning

4 social media

5 communication

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Trainings and supporting materials

Qualification

▪SAP Cloud Customer Engagement for Partners (3hrs)

▪ solution specific:

- Partner Information Report (0,5hrs)

- ByDesign Essentials (1hr)

▪ video series and web assessment (varies)

▪ Link

CLM Playbook

▪Customer Lifecycle Management playbook for partners

▪Best practices and required customer engagement activities

▪Resources and process guidelines supporting SAP’s harmonized CLM model

▪ Link

Assets

▪Tools and resources to effectively perform the CEE role

- Sales Handoff template

- Engagement Plan Activity template

▪Solution specific tools and resources:

- ByD PE Info Center

▪ Link

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Good to know

• Welcome E-Book

• Monthly Customer Information Report

• Monthly Partner Information Report

• Quarterly Newsletter | Subsciption page

• Sharing latest community blogs | Community

• Discussions via Social Media channels | LinkedIn group and Twitter

• Training opportunities e.g. openSAP courses for SAP Business ByDesign

• User Groups

Thank you.

Contact information:

Nikhil Lalchandani

nikhil.lalchandani@sap.com

Benjamin Szuber

Benjamin.szuber@sap.com

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