FINDINGS ON CUSTOMER SUCCESS BENCHMARKS · Customer Success skews towards more metrics Avg.# of...

©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.

FINDINGS ON CUSTOMER

SUCCESS BENCHMARKS

©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.

We too dream of

Customer Success

SCOTT

GOLDEN

Gainsight

MEINI

HEUBERGER

BCG

PHILLIP

ANDERSEN

BCG



Questions we often hear ...

What is the role of Customer Success along the entire customer lifecycle?

What drives effective collaboration between Customer Success & other roles?

What org & funding models support a close collaboration?

How does the role & collaboration change if provided for a fee vs. for free?


Objectives for today

Data Insights Discussion

Note: Data from survey with mainly Small to Mid-sized businesses in Tech sector, Insights from working with Large Enterprise businesses across industries

Cop

yri

ght ©

2017 b

y T

he B

osto

n C

onsultin

g G

roup

, In

c.

All

rig

hts

reserv

ed.

Roles6 areas of

focus

Workflows Accountability

Organization Funding Monetization


Pro

active t

rain

ing/

guid

ance

Impl. o

vers

ight/

QA

Price n

egotia

tio

n

Busin

ess o

utc

om

e

pla

nnin

g &

revie

w

Adoptio

n m

easure

ment

Imple

menta

tio

n

Price q

uotin

g

Consultin

g s

erv

ices

Initia

l tr

ain

ing

Te

ch s

upport

QA

&

issue e

scala

tio

n

Custo

miz

atio

n

Expansio

n o

pport

unity

identificatio

n

Adoptio

n p

lannin

g

Pre

-sale

s s

olu

tio

nin

g

Expansio

n o

pport

unity

pro

cessin

g

Expansio

n

price n

egotia

tio

n

Contr

act

monitorin

g

Contr

act

managem

ent

Renew

al m

anagem

ent

Roles

Customer Success focuses on Adoption & Renewal

Source: BCG Customer Success Survey, March 2018, n=59

No CS CS Main ExecutorCS Contributor

Land Deploy Adopt Expand Renew


Renew

al m

anagem

ent

Contr

act

managem

ent

Contr

act

monitorin

g

Expansio

n

price n

egotia

tio

n

Expansio

n o

pport

unity

pro

cessin

g

Expansio

n o

pport

unity

identificatio

n

Te

ch s

upport

QA

&

issue e

scala

tio

n

Busin

ess o

utc

om

e

pla

nnin

g &

revie

w

Pro

active t

rain

ing/

guid

ance

Adoptio

n m

easure

ment

Adoptio

n p

lannin

g

Initia

l tr

ain

ing

Consultin

g s

erv

ices

Impl. o

vers

ight/

QA

Custo

miz

atio

n

Imple

menta

tio

n

Price n

egotia

tio

n

Price q

uotin

g

Pre

-sale

s s

olu

tio

nin

g


Roles

Split ownership for some lifecycle stages

Customer success

Professional Services

SalesMarketing

Technical support




Price n

egotia

tio

n

Price q

uotin

g

Renew

al m

anagem

ent

Imple

menta

tio

n

Custo

miz

atio

n

Impl. o

vers

ight/

QA

Consultin

g s

erv

ices

Initia

l tr

ain

ing

Adoptio

n p

lannin

g

Adoptio

n m

easure

ment

Pro

active t

rain

ing/

guid

ance

Busin

ess o

utc

om

e

pla

nnin

g &

revie

w

Te

ch s

upport

QA

&

issue e

scala

tio

n

Expansio

n o

pport

unity

identificatio

n

Expansio

n o

pport

unity

pro

cessin

g

Expansio

n

price n

egotia

tio

n

Contr

act

monitorin

g

Contr

act

managem

ent

Pre

-sale

s s

olu

tio

nin

g


Roles

Customer lifecycle management is a team sport



1 internal role0 internal roles 2 & more internal roles

©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.©2018 Gainsight and The Boston Consulting Group. All Rights Reserved.


Effective collaboration with most roles

Product

development/

engineering

Product

management

Technical

support

Marketing Professional

services

Sales

Ineffective

Neutral

Rather ineffective

Effective

Rather effective

Roles


Roles


... driven by frequency of interaction

Product

development/

engineering

SalesMarketing Product

management

Technical

support

Professional

services

Daily

Rarely

Quarterly

Monthly

Weekly


Several key

workflows for

Customer

Success

Adoption

planning

Adoption

measurement

Proactive product

training / guidance

Business outcome

planning / review

Expansion oppty

identification

Expansion oppty

nurturing

Renewal

management

Workflows


Companies have 4+ cross-functionally designed workflows


12

8

10

8

3

2

4

8

7 Workflows6 Workflows5 Workflows4 Workflows3 Workflows2 Workflows1 WorkflowNo Workflow

Workflows

The higher

the # of

workflows,

the better the

collaboration

between CS

and other

roles



Many companies without cross-functionally designed workflows

42% 42% 42% 40%51%

25% 24%

35%27%

36%29%

20%

25% 24%

24% 31%22%

31% 29%

49% 53%

Adoption

measurement

Business

outcome planning

and review

Proactive product

training/guidance

Renewal

management

Expansion

opportunity

nurturing

Adoption planning Expansion

opportunity

identification

Workflows established, business impact recorded Workflows established, no business impact recorded No workflows established

Workflows


Workflows


Positive impact from establishing workflows

57%

70%

79%

63%

71%

Customer satisfaction/NPS

Value added to customer

Scope of adoption/ utilization

Scale of adoption/ utilization

% of advocates in customer base

Business metrics Leading indicators

84%

78%

87%Expansion Rate

Revenue Renewal Rate

Account Revenue Growth

DecreaseNeutralIncrease



... and business performance impact is significant

Account Revenue Growth Revenue Renewal Rate Expansion Rate

Neutral + 1 – 5% + 10 – 20%+ 5 – 10% 20+%

Workflows


Various critical

lifecycle metrics

Land offerings /

accounts

Initial

adoption

Ongoing adoption /

consumption

Expansion

rate

Renewal

rate

Customer

engagement

Customer

satisfaction

Overall account

growth


Accountability


Accountability

1. Weighted average based on survey respondents Source: BCG Customer Success Survey, March 2018, n=59

Customer Success skews towards more metrics

Avg.# of metrics1

Marketing 1.5

Sales 2.9

Professional Services 2.0

Technical Support 2.0

Customer Success 4.9

Project Management 1.8

Product Dev / Engineering 1.5

1 metric 8 metrics

company has 2

of these metrics

for each role

1

do not have at least

1 of these metrics

for each role

75%


Accountability


Customer Success incentivized based on Renewal & Expansion

74%

60%

51%

49%

47%

45%

32%

13%

Overall account growth

Customer engagement

Customer satisfaction

Expansion rate

Ongoing adoption / consumption

Initial adoption

Renewal rate

Land of new offerings / accounts

Business Outcome

Adoption process


Accountability


Many companies added some

of these metrics ...

... and experienced a positive

impact on business outcome

Revenue

Renewal Rate

Account

Revenue

Growth

Expansion

Rate

+ 5 – 10%

+ 1 – 5%

Neutral

Negative

20+%

+ 10 – 20%Product management 17%

Engineering 11%

Customer success

Technical support

68%

11%

34%

Marketing

26%

Professional services 32%

Sales


Organizational

model

changed reporting

structure of

Customer Success

in the past

>50%


Organization

38%

25%

13%

9%

6%Business Unit

Sales

Chief Revenue Office

CEO

Support & Services



Organization

CEO

29

29

14

14Prevent competing priorities

Accommodate Exec preference

Improve ’decision power’

Improve collaboration

Shift of focus to drive growth

Sales

Support &

ServicesShift to ...

29

24

14

10

14

25

38

25


Funding model


19%

15%

30%

36%

I don’t knowCOGS CombinationOpex

Funding



Funding

CEO

Opex

COGS

Don't know

Comb. COGS

Don't know

Sales

Don't know

Comb.

COGS

Opex

Opex

Support &

Services

Funding model not driven

by current org structure ...

History/origin of function

Characteristics of activities

Impact on gross margin

Other

Funding sustainability

... but by the origin of the

function



<15%changed the funding

model of Customer

Success in the past

... and changing doesn't do much

50% experienced a

positive impact

50:50 in changes to

Opex and COGS

Funding


Monetization

model


of companies

charge for

some/ all activities

¼ of companies provide all Customer

Success activities for free

¾

Monetization



Implementation

Customization

Consulting Services

Initial Training

Mostly charged

Mostlycombination of fee & free

Mostly for free

Proactive guidance/

training

Adoption planning

Adoption measurement

Business outcome plan

& review

Support issue

escalation

Monetization


Please submit your thoughts and

questions via sli.do


THANK YOU

FINDINGS ON CUSTOMER SUCCESS BENCHMARKS · Customer Success skews towards more metrics Avg.# of...

Documents

Transcript of FINDINGS ON CUSTOMER SUCCESS BENCHMARKS · Customer Success skews towards more metrics Avg.# of...