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

Perpetual Licenses

Customer

Product

THIS IS NOW

Software

Business Dept.

Subscription

Short(er)

Vendor

Services

PLATFORM

LOCATION

DELIVERY

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

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

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

SUPPORT SUCCESS

Subscriptions Are Only the Beginning

Transactional

Economy

Vendor Success

Customer Success

If they use more,

who cares?

Subscription

Economy

Vendor Success

CustomerSuccess

If they use more,

they are more likely to renew.

Consumption

Economy

Vendor/Customer

Success

If they use more,

they pay more!

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

Company Type Focus

Company Type

Upsell/Cross-sell

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

Company Type

Upsell/Cross-sell

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

$0.14$0.09

Why Do/Should CEOs Love Customer Success?

1 2 3CAC CEC CRC

$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

>= 110%

>= 20%

>= 130%

The Recurring Revenue Waterfall

100% -9%

-11%+13%

+18% 111%

Starting Churn Downsell UpsellCross-

Retention

Can Technology Help?

Lifecycle

Impact

Marketing Automation

PROSPECTS

CUSTOMERS

Impact

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

dsteinman@gainsight.com

@dantsteinman

CommunityExpertise

dsteinman@gainsight.com

@dantsteinman

#SaaStock17

Questions?

#SaaStock17

DAN STEINMAN

DAVID APPLE

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

Support Customer Experience Education

Customer Success

Support Customer Experience Education Account Management

Customer Success

Support Customer

Experience Education

Account Management

Customer Success

Support Customer

Experience Education

Account Management

Customer Success

Customer Care

CS Operations

Customer Engagement

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

1st response time1st resolution time

C-SatCost to serve

Net MRR ChurnNPS

Hours savedRotating quarterly

metric

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

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?

david.apple@typeform.com

@davidcapple

#SaaStock17

Questions?

#SaaStock17

DAN STEINMAN

DAVID APPLE

Mapping the Customer Lifecycle

Cristina GeorgoulakiHead of Customer Success Management

Workshop

Why the Customer Lifecycle?

Why focus on the Customer Lifecycle?

Have a plan

Have a plan Retain

Have a plan Retain Expand

How are we going to do it?

Concepts(5 min)

Workshops(60 min)

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

Customer Journey

Customer Lifecycle

Segmentation

Stages

Milestones

Touchpoints (scheduled, behavioral)

Desired Outcomes

Customer lifecyclehelps organizations understand what

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

Determine most valuable 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?

What to keep in mind...

Your customer’s journey

The goals of each stage

Determining the time period

Writing a clear definition for each stage

Determining the time period

Stagesare the different periods of the Customer Lifecycle

Workshop: Stages

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

Your customer’s desired outcome

The moments your product delivers the most value

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

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

ReachedLimit

Kick-off call

Renewal in 30 days

Change of sponsor

ReachedLimit

Kick-off call

Renewal in 30 days

Change of sponsor

Complement desired outcomes & milestones

Anticipate when your customers might need a helping hand

Always focus on delivering value - avoid coming across as spammy or salesy

Be specific about target, channel, trigger, driver, timing, owner, etc.

Workshop: Touchpoints

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

Gracias!

Questions? Suggestions?

Cristina@typeform.com

@Cris_Laki

#SaaStock17

Questions?

#SaaStock17

THANK YOU

DAN STEINMAN

DAVID APPLE

SaaS.City 2017 Customer Success Bootcamp

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