Product Usage: Your Silent Revenue Killer
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Transcript of Product Usage: Your Silent Revenue Killer
Product Usage: Your Silent Revenue Killer
Today’s Host: Scott Schell@Schell_ShockedSenior Manager, Global Customer Success Cisco Systems, Inc.
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Customer Success Methodology#successtalk
People
Automation
Process Analytics
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Product Usage: Your Silent Revenue Killer
Guest Presenter: Kyle Watts
Senior Manager GCS Virtual Customer Success CenterCisco Systems, Inc.
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Rockefeller Corporation as cited in 18 Customer Facts Marketers Can’t Ignore, Brand Strategy Insider
“68% of customers leave because they think you don’t care about them”
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Delivering customer outcomes
Grow Revenue
Optimize Expenses
Improve Cash Flow
Maximize Asset Use Manage Risk
!$
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Attracting new customers will cost your company 5 times more than keeping an existing customer.
A 5% increase in customer retention can increase a company’s profitability by 75%.
A customer is 4 times more likely to defect to a competitor if the problem is service-related than price- or product-related.
The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%.
5X
Source: Forbes, Never Underestimate the Value of Retention
Decrease customer churn
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Position your company for success
Prioritize & Segment Customers
Identify & Measure Key Indicators
Develop & Execute an Action Plan
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Why prioritize & segment?Customer Engagement Constraints
Different Customer Needs
Variable Cost to Serve
Variable Levels of Effort
Expected ROI
Strategic AccountsFor Free vs. for Fee
Capacity Constraints Opportunity Cost
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Audience Poll
Do you feel that there is an established process in place to determine your approach to customer engagement that feeds future revenue opportunities?
Yes No
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What is the difference?
Prioritization
Maximizing your available resources against known capacity constraints
Driving alignment with your most valuable customers
Segmentation
Assignment of the right resources to the right customers to maximize impact/results
Allows for a scalable operation through effective prioritization
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General prioritization selection criteria
Mature Adopters with Low Opportunity
Lower Cost to Serve
Mature Adopters with High Opportunity
Optimal Cost to Serve
Low Adopters with Low Opportunity
Lowest Cost to Serve
Low Adopters with High Opportunity
Higher Cost to Serve
Adoption Currency
Exp
ansi
on C
urre
ncy
Customer Lifecycle Journey
Sta
irway
to V
alue
Adoption Currency Frequency Volume # Features # Active Users # Registered Users
Expansion Currency Annualized Services
Spend Services Coverage
Opportunity Product Refresh
Opportunity Services Coverage
Ratio
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Mature Adopters with Low Opportunity
Mature Adopters with High Opportunity
Low Adopters with Low Opportunity
Low Adopters with High Opportunity
Smart Net Total Care prioritization
Active Usage > 90d U2C Oppty > $$$ LDOS Oppty > $$$ Coverage Rate <
90%
Time to Value – 6 to 9mos
LoE = High
Health Score : 1 – 5
Active Usage < 90d U2C Oppty > $$$ LDOS Oppty > $$$ Coverage Rate <
90%
Time to Value – 3 to 6mos
LoE = Moderate
Health Score: 5 – 10
Active Usage > 90d U2C Oppty > $ LDOS Oppty > $ Coverage Rate <
90%
Time to Value - > 9mos
LoE = Very Low
Health Score: 1 – 5
Active Usage < 90d U2C Oppty > $ LDOS Oppty > $ Coverage Rate <
90%
Time to Value – 6 to 9mos
LoE = Low
Health Score: 5 – 10
Adoption Currency
Exp
ansi
on C
urre
ncy
Adoption Currency
Exp
ansi
on C
urre
ncy
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Differentiating routes to engagement
Low/Tech Touch Automated Journey [Ratio] 100:1 – 250:1 and 1:Many
Digital-Based
AutomatedAssets
Med TouchVirtual Customer Success Manager [Ratio] 50:1 – 100:1
Activity-Based
Fixed Assets
High TouchCustomer Success Manager [Ratio] 10:1 – 25:1
Relationship-Based Custom Assets
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Getting started
Identify data sources for
adoption and expansion
Develop an engagement
strategy
Leverage data to prioritize
customers
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How will your data lead to success?
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Accelerate value realization through adoption
Quickly deliver on business/operational outcomes Grow revenue Reduce expenses Manage risk
Create profitable customer relationships Reduce churn/Increase retention Improve product usage Increase time-to-value Reduce cost to serve Increase revenue/wallet share Create a competitive advantage through customer
experience
Help customers use what they bought and help them incorporate key features into their internal processes to achieve their desired
outcome.
Simply… Success…
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VALUE engagement practice
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Why should you care?
0 +3mos
0
10
7.0
+6mos
9.0
critical90 days
Value Realization Threshold “Auto-Renewal” probability > 90% Expansion Opportunity Realized
Positive trends in health scores correlate to higher renewal rates and account growth.
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How do you make your data useful?
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Audience Poll
21
Does your company currently track how your solution is delivering customer business outcomes?
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Customer adoption indicators
Feature UtilizationActive Users
MACD Process
RMA Success RateReduced MTTFR
Reduced Case Load
Grow revenueReduce expenses
Manage risk
Leading Lagging Outcomes
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Low scores indicate adoption challenges and require immediate intervention to remediate issues or remove obstacles.
High scores indicate healthy adoption and the potential for references, case studies or expand opportunities.
Understanding health scores
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How do you make your data actionable?
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Get Well Stay Well
Overcoming inhibitors to the customer’s success
Promoting new usage and feature consumption
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Get well plan
…how these inhibitors are affecting the customer’s business.
…ways in which you can assist the customer in overcoming obstacles.
…a plan to eliminate challenges and provide the customer with best result.
…progress and adjust the plan to any changing needs or barriers.
…adoption barriers and business challenges that may be affecting optimal product use and value realization.
Identify
Measure
Assess
Develop
Document
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Stay well plan
…the probability of customer conversion to enhanced solutions.
…if the customer is aware of the business goals achieved and enhanced value that can be realized.
…a plan to improve or build on the customer’s success.
…milestones and encourage progress on any new functionality implemented.
…opportunities in adoption or expansion currency.Identify
Measure
Assess
Develop
Document
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Getting started
Identify data sources
Map relevant customer data
points
Create customer health scores
Determine an action plan
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@Schell_Shocked
@CiscoImpact
Let us know what you think!
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