SaaS.City 2017 Customer Success Bootcamp
Transcript of SaaS.City 2017 Customer Success Bootcamp
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SaaS.CityCustomer Success Bootcamp
General ManagerGainsight EMEA
DAN STEINMAN
VP of Customer SuccessTypeform
DAVID APPLE
Head of Customer Success ManagementTypeform
CRISTINA GEORGOULAKI
Transformation
A Brief History of
Business Computing
New Org - Information Systems (IS)
• Primarily operations
• Building data centers
• Managing data centers
• Running compute jobs
• Doing tape backups
• Knowing IBM’s phone #
Generation #1 - Mainframes
New Org - Information Tech (IT)
• Security
• Asset Management
• Systems/Data Integration
• Company standards
• BYOD
Generation #2 – Distributed Computing
Generation #3 – Cloud Computing
New Org - Customer Success
• Customer Health
• Renewals
• Expansion
• Advocacy
• Outcomes
Ch- Ch- Ch- Ch- Changes
THAT WAS THEN
Hardware
On-Premise
Install/CD
IT
Perpetual Licenses
Long
Few
Customer
Product
THIS IS NOW
Software
Cloud
Web
Business Dept.
Subscription
Short(er)
More
Vendor
Services
PLATFORM
LOCATION
DELIVERY
BUYER
PRICING
ASSUMED LENGTH
OF RELATIONSHIP
# OF VENDORS
WHO TAKES RISK
PRODUCT
What Has Changed?
The Power Shift
VENDOR CUSTOMER
Power Shift #1
Power Shift #2
Where do the bookings come from?
Installed Base New Business
Post-SalesPre-Sales
Post-SalesPre-Sales
In a world where the Sales motion
never ends, there’s no such
thing as post-Sales
Words of Wisdom
Customer Success
In the Age of the Customer
Transactional Economy Subscription Economy
Vendor Success
Customer Success
Vendor Success
CustomerSuccess
A MASSIVE CHANGE
From Reactive Funnel to Proactive Hourglass
SALES
A D O P T
$ $ $
$
Reactive customer service model
optimized to reduce cost-to-serve Proactive customer success model
optimized to increase revenue per customer
TRANSACTION ECONOMY FUNNEL SUBSCRIPTION ECONOMY HOURGLASS
E X P A N D R E N EW
SALES
$
SUPPORT SUCCESS
Subscriptions Are Only the Beginning
Transactional
Economy
Vendor Success
Customer Success
If they use more,
who cares?
Subscriptions Are Only the Beginning
Subscription
Economy
Vendor Success
CustomerSuccess
If they use more,
they are more likely to renew.
Subscriptions Are Only the Beginning
Consumption
Economy
Vendor/Customer
Success
If they use more,
they pay more!
Subscriptions Are Only the Beginning
Outcome
Economy
Success
If you deliver on their outcomes,
they continue to pay you.
Vendors
Deliver
Products
Vendors
Deliver
Success
Customer Success is no longer
just for SaaS companies
trying to reduce churn
Words of Wisdom
SaaS
Company Type Focus
Churn
Company Type
Upsell/Cross-sell
Tech
SaaS
Focus
Churn
Source: Linkedin, (for at least one product line / department)
13 of the top 20 largest technology companies in the world have established a Customer Success Organization
B2B
Company Type
Tech
SaaS
Focus
Upsell/Cross-sell
Churn
Maximize the Value of
Your Customer Base
Tech and Beyond
The Impact Is
Real and Measurable
RETENTIONFirst-order Value
David Skok
Matrix Partners
http://www.forentrepreneurs.com/why-churn-is-critical-in-saas/
Bookings Versus Churn
ADVOCACY – Second-order Value
Source: Jason Lemkin
Source: Altimeter and
FactSet 10/2014
VALUATION – Third-order Value
1 2 3CAC CEC CRC
$1.07
$0.14$0.09
Why Do/Should CEOs Love Customer Success?
1 2 3CAC CEC CRC
$1.07
$0.14$0.09
Why Do/Should CEOs Love Customer Success?
Measuring a Recurring
Revenue Business
• Sales growth
• Cash flow
• CAC
• Sales/Marketing efficiency
• Services utilization
• Revenue per employee
• Churn
Measurements Galore!
In the age of the customer,
net retention
is the most important metric
in your business
Words of Wisdom
Guaranteed Success – Rule of 130
Net Revenue Retention
Free Cash Flow
TOTAL
>= 110%
>= 20%
>= 130%
+
The Recurring Revenue Waterfall
100% -9%
-11%+13%
+18% 111%
Starting Churn Downsell UpsellCross-
Sell
Net
Retention
Can Technology Help?
Custo
mer
Lifecycle
Impact
Marketing Automation
PROSPECTS
CUSTOMERS
Impact
CRM
Customer
Support
CUSTOMER SUCCESS
Customer Success Maturity Curve
Reactive
Informed
Proactive
Predictive
Moving Up The Maturity Curve Impacts Net Retention
80% 89% 94% 95%
13%15% 15%
23%92%101%
108%118%
Reactive Informed Proactive Predictive
Avg. Gross Retention % Avg. Expansion Rate % Avg. Net Retention %
Performance Benchmarks By Maturity Stage
Current Stage Target Stage
Single View of Customer and Health Score
Automation Drives Actionable Insights
Risk Criteria Opportunity Criteria Event Criteria
ImplementationMilestone Date Missed Implementation Completed Early Post Implementation Survey
Product UsageNo Logins > 1 Week
Drop in logins > 25%
> 90% of Allocated Users Deployed
Increase in logins > 25%Annual Health Check
NPS Detractor Response Identified Promoter Response Identified Semi-Annual Survey
SupportP1 Ticket Unresolved > 1 Week
> 5 Tickets Logged in 1 MonthPositive Support Survey Periodic Support Review
Last Contact > 2 Weeks No Contact < 2 Weeks No Contact = =
• Everything is changing
• Power is shifting externally and
internally
• Customer Success is key
• The impact is measurable
• Key metric is net retention
• Technology can help
Summary
Resources
@dantsteinman
CommunityExpertise
@dantsteinman
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Questions?
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SaaS.CityCustomer Success Bootcamp
General ManagerGainsight EMEA
DAN STEINMAN
VP of Customer SuccessTypeform
DAVID APPLE
Head of Customer Success ManagementTypeform
CRISTINA GEORGOULAKI
Customer Success
David Apple | VP Customer Success
Why Customer Success at Typeform?
Retention
Why focus on Customer Success?
Retention
Why focus on Customer Success?
Virality
How did the Customer Success team evolve?
Customer Support
Team structure evolution
Support Education
Customer Success
Team structure evolution
Support Customer Experience Education
Customer Success
Team structure evolution
Support Customer Experience Education Account Management
Customer Success
Team structure evolution
Support Customer
Experience Education
Account Management
Customer Success
Sales
Team structure evolution
Support Customer
Experience Education
Account Management
Customer Success
Customer Care
CS Operations
Customer Engagement
Sales
Team structure evolution
Customer Support
Customer Experience
CS Operations
Empathically solve our customers’
problems
Understand our customers’ needs to deliver more
value and inspire them to achieve
more than they had anticipated
Empower the CS team through
data, tools, and processes
Pill
ars
Mis
sio
n
1st response time1st resolution time
C-SatCost to serve
Net MRR ChurnNPS
Hours savedRotating quarterly
metric
KP
Is
Sales
Sell the best solution to the
right customers
New Biz MRRLTV
ARR / CAC
Pillar missions and KPIs
Account Management
Build relationships with our largest
customers to ensure they get the value they signed up for… and more
Net MRR ChurnExpansion MRR
NPS
Education
Empower our customers to help
themselves achieve their goals
Ticket deflectionBehaviors post edu
consumption
BUSINESSLeading & lagging KPIs
COSTEfficiency & estimated ROI
CULTURETeam happiness index
Triple bottom line
¡Gracias!
Questions? Suggestions? Hate mail?
@davidcapple
#SaaStock17
Questions?
#SaaStock17
SaaS.CityCustomer Success Bootcamp
General ManagerGainsight EMEA
DAN STEINMAN
VP of Customer SuccessTypeform
DAVID APPLE
Head of Customer Success ManagementTypeform
CRISTINA GEORGOULAKI
Mapping the Customer Lifecycle
Cristina GeorgoulakiHead of Customer Success Management
Workshop
Why the Customer Lifecycle?
Why focus on the Customer Lifecycle?
Have a plan
Why focus on the Customer Lifecycle?
Have a plan Retain
Why focus on the Customer Lifecycle?
Have a plan Retain Expand
How are we going to do it?
How are we going to do it?
Concepts(5 min)
How are we going to do it?
Concepts(5 min)
Workshops(60 min)
How are we going to do it?
Concepts(5 min)
Workshops(60 min)
Close + Q&A(15 min)
What will you walk away with?
Customer lifecyclehelps organisations understand what to do
Tier 1
Tier 2
Tier 3
Start with segmentation
Define stages
Define key milestones
Define touchpoints
Iterative process
Always iterating
Iterative process
Always iterating Rome wasn’t built in a day
Terminology
Terminology
Customer Journey
Customer Lifecycle
Segmentation
Stages
Milestones
Touchpoints (scheduled, behavioral)
Desired Outcomes
Customer lifecyclehelps organizations understand what
to do
Customer Journeydescribes how to deliver the right experience
to each individual customer
Say what? Still not getting it (link)
Segmentation dividing customers into groups based on common characteristics
Stages are the different periods of the Customer Lifecycle
Milestones are steps or events a customer must achieve in order to use your product successfully
Touchpoints are any customer interaction with your brand
Desired outcomes are your customer needs to achieve
Workshop 1 Segmentation
Segmentation dividing customers into groups based on common characteristics
Why segment your customers?
Customize the experience for each segment
Why segment your customers?
Customize the experience for each segment
Determine most valuable customers
Why segment your customers?
Use Case Organization Industry Revenue
Customer Journey
Product or Solution
Size Persona Territory
How to segment your customers?
Tier 1
Tier 2
Tier 3
Segmentationdividing customers into groups based on common characteristics
Workshop: Segmentation
Time for this workshop10 minutes
DefinitionDividing customers into groups based on common characteristics
Why- Customize the customer experience - Prioritize most valuable customers
HowBase on the most relevant characteristics for your business
Examples
● Revenue● Persona● Company size● Country● Language● Culture● Proximity● Product● Function
Customer Experience team (Tech-touch)
Over $2k
Strategic
Under $2k
CSM team(High-touch)
CSMs strategically engage (Low-touch)
Workshop 2 Stages
Stages are the different periods of the Customer Lifecycle
Depending where your customers are in their lifecycle their needs will be different
Why define stages?
How to define stages?
How to define stages?
What to keep in mind...
Your customer’s journey
What to keep in mind...
Your customer’s journey
The goals of each stage
What to keep in mind...
Your customer’s journey
Determining the time period
The goals of each stage
What to keep in mind...
Your customer’s journey
Writing a clear definition for each stage
Determining the time period
The goals of each stage
What to keep in mind...
Stagesare the different periods of the Customer Lifecycle
Workshop: Stages
Time for this workshop10 minutes
DefinitionStages are the different periods of the Customer Lifecycle
WhyAllows you to focus on your customer’s needs at each stage of their lifecycle
How1. Think of your customer’s journey2. Break it into stages3. Write clear definitions4. Define time periods
Examples
● Trial● New customer● Implementation● Onboarding● Renewal● Advocate● Reactivation
Onboard Adopt Renew Established Champion
Month 1 Months 2 → 8 Months 9 → 12 12+ months +2 years
Workshop 3 Milestones
Milestones are steps or events a customer must achieve in order to use your product successfully
Check if customers are getting value along the way, and take action accordingly
Why have milestones?
Customer centric Based on customer’s desired outcomes
Types of milestones
Customer centric Based on customer’s desired outcomes
Product centricData-based events that lead to customer success and product stickiness
Types of milestones
Examples of milestones
What to keep in mind...
Your customer’s desired outcome
What to keep in mind...
Your customer’s desired outcome
The moments your product delivers the most value
What to keep in mind...
Your customer’s desired outcome
The moments your product delivers the most value
What to keep in mind...
Behaviours that make your customers more sticky
Stage 1 Stage 2
Timeline
Stage definition
Desired outcomes
Milestones (customer & product centric)are steps or events a customer must achieve in order to use your product successfully
Stage 3 Stage 4 Stage 5
Workshop: Milestones
Time for this workshop10 minutes
DefinitionSteps or events a customer must achieve in order to use your product successfully
WhyTo ensure that your customers are on the right track and getting the most value
How1. Think of what you’d like your ideal customer to
experience at each stage2. Identify both customer & product centric milestones
Examples
● Technical setup complete● Team members trained● First project launched● 60% of licenses have been used● QBR
0 - 30 days
This is an important time to build a strong relationship with the customer and get them off the ground by being proactive whenever possible to help with training, integrations, etc.
Milestones (customer & product centric)are steps or events a customer must achieve in order to use your product successfully
1. Kick-off call complete
1. Created 1st typeform
1. 70% of team capacity
1. Workspaces setup for project launch
1. Has collected 10 responses
Desired outcomes
● Understand customer’s desired outcomes● Activate● “Aha” moment● 1st project off the ground● Build trust
Onboard Adopt Renew Established Champion
Workshop 4 Touchpoints
Touchpoints are any customer interactions with your brand
Touchpoints are opportunistic in that the customer's experience, opinions, and relationship with a company and a brand are affected at every touchpoint in a
positive, neutral, or negative way.
Why plan your toucpoints?
Types of touchpoints
Scheduled
Types of touchpoints
BehavioralScheduled
Drivers of touchpoints
Criticalmoments
Drivers of touchpoints
Moments to delight
Criticalmoments
Examples of touchpoints
ReachedLimit
Kick-off call
No activity in 30 days
Renewal in 30 days
Change of sponsor
Examples of touchpoints
ReachedLimit
Kick-off call
No activity in 30 days
Renewal in 30 days
Change of sponsor
Examples of touchpoints
ReachedLimit
Kick-off call
No activity in 30 days
Renewal in 30 days
Change of sponsor
What to keep in mind...
What to keep in mind...
Complement desired outcomes & milestones
What to keep in mind...
Anticipate when your customers might need a helping hand
Complement desired outcomes & milestones
Always focus on delivering value - avoid coming across as spammy or salesy
What to keep in mind...
Anticipate when your customers might need a helping hand
Complement desired outcomes & milestones
Always focus on delivering value - avoid coming across as spammy or salesy
What to keep in mind...
Anticipate when your customers might need a helping hand
Complement desired outcomes & milestones
Be specific about target, channel, trigger, driver, timing, owner, etc.
Workshop: Touchpoints
Time for this workshop10 minutes
DefinitionAny customer interactions with your brand
WhyTo proactively engage with customers to drive them to value and to prevent churn.
How1. Think of your milestones and desired outcomes2. Identify critical moments and moments to delight3. Have a mix of scheduled and behavioral
Examples
● Change of sponsor● Kick-off call● Seat limit is reached● Support ticket
Onboarding
Welcome email
Kick-off call
Follow-up on account setup
No team members added
No Typeforms created
Recap & next steps
Tier 1
Tier 2
Tier 3
Started with segmentation
Defined stages
Defined key milestones
Defined touchpoints
Now it’s up to you and your team :)
Goal of the session
Have a plan
Goal of the session
Have a plan Retain
Goal of the session
Have a plan Retain Expand
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Questions?
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THANK YOU
SaaS.CityCustomer Success Bootcamp
General ManagerGainsight EMEA
DAN STEINMAN
VP of Customer SuccessTypeform
DAVID APPLE
Head of Customer Success ManagementTypeform
CRISTINA GEORGOULAKI