How Customer Success-centricityDrives Revenue, Growth, and Valuations
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How Customer Success-centricity Drives Revenue, Growth, and Valuations Hello, my name is Lincoln Murphy I’m excited to be presenting to @LincolnMurphy
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Transcript of How Customer Success-centricityDrives Revenue, Growth, and Valuations
How Customer Success-centricity�Drives Revenue, Growth, and Valuations
Hello, my name is Lincoln Murphy I’m excited to be presenting to
@LincolnMurphy
Stay longer
Buy More
Expand Internally
Advocate Externally @lincolnmurphy
“POWERis the capacity
to alter the state of others”
You EXIST to alter the state of your customers
You can’t�TAKEpower
Power is GIVEN
Initial Power Transfer Requires�INITIAL TRUST
Ongoing Power Transfer Requires�
ONGOING TRUST
Newton’s 3rd Law
“What go around come around, kid.” – Cypress Hill
Make your CUSTOMERS
powerful!
They’ll make YOU�
powerful!
HOW will they make you powerful?
Stay longer
Buy More
Expand Internally
Advocate Externally @lincolnmurphy
Customers Making You Powerful Impacts
Company VALUATION
Revenue x Multiplier = Value Company Valuat ion Calculat ion
Revenue x Multiplier = Value o There’s
more!
Company Valuat ion Calculat ion
Revenue x Multiplier = Value o Customer Lifetime Value (LTV)o Customer Acquisition Cost (CAC)o Net Revenue Retention (NRR)o Total Addressable Marketo Talent Acquisition
o There’s more!
@lincolnmurphy
Company Valuat ion Calculat ion
How do you make your customers POWERFUL?
By making them SUCCESSFUL
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Customer Success is NOT…• Just a Department• Customer Support• Account
Management• Happiness or
Delight
• Churn Mitigation• Saving Customers• “Checking in" with
customers• Customer hand
holding @lincolnmurphy
Customer Success is a GROWTH
ENGINE
The�DNA
Dilemma
Customer Success CULTURE
Maintaining culture is one of the BIGGEST CHALLENGES as
companies grow
Customer Success must be a part of
the DNA
Customer SUCCESS-
driven Growth
As customers SUCCEED and
EVOLVE…
…their relationship�with us should �
EVOLVE and GROW
Year 1 Year 2 Year 3 Year 4 Year 5
80%
20%
Customer Lifetime Value
@lincolnmurphy
Year 1 Year 2 Year 3 Year 4 Year 5
> 95%
< 5%
Customer Lifetime Value
@lincolnmurphy
Customer Lifetime Value
Year 1 Year 2 Year 3 Year 4 Year 5
> 98%
< 2%Year 6
@lincolnmurphy
Resource Allocation
Year 1 Year 2 Year 3 Year 4 Year 5
> 98%
< 2%Year 6
@lincolnmurphy
EXPANSION is part of the Customer’s
SUCCESS
Customer Success Management is the Orchestration, Operationalization, Instrumentation, and Intervention designed to ensure customers achieve their ever-evolving Desired Outcome.
“
”- Lincoln Murphy @lincolnmurphy
Customer SuccessManagement
@lincolnmurphy
Enrichment
Grow BECAUSE of your effort, not IN SPITE of it
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Interactions Start�
EARLY
“The seeds !of churn are !planted early” !– Lincoln Murphy!@lincolnmurphy!
Avoid�BAD FIT
Customers
Who Feels the Acute Pain?• Sales• Implementation• Product• Marketing
• Support• Account
Management• Customer Success
Management• Your Customer!
@lincolnmurphy
Acquire customers with
SUCCESS POTENTIAL
Technical Fit
Functional Fit
Competence Fit
Experience Fit
Cultural Fit
@lincolnmurphy
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
RequiredOutcome
AppropriateExperience
Desired Outcome
WHAT your customer needs to achieve
HOW they need to achieve it@lincolnmurphy
CustomerCharacteris9cs
Method
Customer(segment)
Desired Outcome
@lincolnmurphy
RequiredOutcome
AppropriateExperience
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Needtowork,no9metoeat
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Assignedsea9ng,WiFi,Foodservice,legroom
BusinessTraveler
Savemoney,enjoy
des9na9on
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Cheapfares,snacks&drinks
FamilyGoingonVaca9on
Churn is the SYMPTOM of an Underlying Disease
@lincolnmurphy
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Without Customer Success• Stagnating Customers• Customer Churn• Revenue Churn• Reputation Suffers• TAM shrinks
• Sales Friction Increases• Sales Cycles Extend• CAC Increases• Talent Acquisition
Suffers• Company Value Drops
@lincolnmurphy
With Customer Success• Expanding Customers• Net Revenue Retention• Great Reputation• TAM Increases• Sales Friction
Decreases
• Sales Cycles Shorten• CAC Efficiency• Talent Acquisition
Improves• Company Value
INCREASES
@lincolnmurphy
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Customer. SUCCESS.
When your CUSTOMERS
Succeed...
YOU Succeed!
Thank You!@lincolnmurphy�[email protected]
Awesome! Thanks for your attention.Learn more about me at http://sixteenventures.com
And contact me via [email protected]
@LincolnMurphy
How Customer Success-centricity�Drives Revenue, Growth, and Valuations
