CUSTOMER SUCCESS STRATEGYCUSTOMER SUCCESS STRATEGY

Rincon CompanyJohn Pittman, VP Customer SuccessJanuary 20, 2015

HIGH-LEVEL CUSTOMER SUCCESS STRATEGY

1. Maximize CLV 2. Segment & treat

customers by lifecycle

and persona

3. Build cross-

department customer

engagement plan

CUSTOMER SUCCESS LENS

Target Customer

Influence

Direct Impact

Acquisition

Free TrialPipeline

Onboarding

Engagement

Adoption

Customer Feedback

Renewal

Expansion

We will focus on the latter stages of the customer lifecycle.

And exert influence over the early stages.

CUSTOMER CHURN LEVERS

Onboarding

Engagement

Adoption

Customer Feedback

Renewal

Expansion

We are focused on improvements to our onboarding, ongoing

engagement and renewal process.

Q2 Focus

Onboarding has been our focus.

Shift focus to deeper in the customer lifecycle.

Onboarding

GOING BEYOND ONBOARDING

Customer ROI more than onboarding time and

technical deployment.

What happens after onboarding (adoption) really

matters.

Adoption

Historically sales has “owned” renewal.

Customer success will now run renewals.

New process initiates renewals 90 days out

Renewal

ADOPTION METRIC = HEALTH SCORE

HIG

H A

CTI

VIT

Y

GOOD HEALTH

Health vs. Activity

Customer Health scores measure effectiveness of our

adoption efforts at the portfolio and individual CSM level.

POOR HEALTH

LOW

AC

TIV

ITY

Decrease unhealthy

customer count from

34% to 25%.

STRATEGIC METRICS

Our CLV Calculation

75% x $500 / 1% = $37,500

$20,000 / $2,000,000 = 1%

We Measure “Eligible Churn”

Gross Margin %

Average

MRR per account

Monthly churn %

Revenue Lost During Period

Total Revenue Due For

Renewal During Period

Many CLV & Churn calculation methods exist. The ones below

best fit our business model. We will standardize on these.

CAC & CRC MODEL

Customer Acquisition Cost(CAC)

$1.00 to get $1.15

Customer Retention Cost (CRC)

$0.12 to retain $1.00

Spend New ACV Spend ACV

Customer success will spend 12% of ACV to retain

existing customers.

CUSTOMER SEGMENTS

We have two distinct customer segments. We will develop

tailored customer success playbooks for each.

Self-serviceProfessional

Services

Professional

Edition

Enterprise

Edition

NEEDS ANALYSIS – PROFESSIONAL EDITION

Smaller professional edition customers need UI to drive

adoption, self-serve customer portal and marketing for nurture.

Customer Success

Product

Customer Marketing

Automated Customer NurtureCustomer Success to drive content, Marketing to own execution.

Product ExperienceCustomer Success & Product jointly to interpret usage analytics for self-serve. Product to implement UI changes.

Customer PortalCustomer Success to refresh self-serve content in customer portal.

1.

2.

3.

NEEDS ANALYSIS – PROFESSIONAL EDITION

Enterprise customers need high-touch treatment from

Customer Success and additional product features to fill gaps.

Customer Success

Product

Customer Marketing

Product CustomizationProduct team to dedicate share of each 2-week sprint to enterprise customer customizations.

Professional ServicesScale professional services staffing levels to match targeted new customer and up-sell volume.

NEEDS ANALYSIS – ENTERPRISE EDITION

1.

2.

CUSTOMERS’ SHOES – CRITICAL PATH

“Oriented”[week 2]

• Understand functionality• Comfortable with interface• Internal plan composed

“Progress”[week 6]

• % increase in visitors• % increase in leads• Lead-to-sales % increase

“Active”[week 4]

• New leads flowing• 1st workflow live• 1st blog post live

Technical Set-up[week 1]

• Blog migrated• CRM integrated• Website code deployed

“Initial Value”[week 8]

• Build attribution report• Complete month of stats

“Full Speed”[week 10]

• Email campaign sent• Lead nurture active• Social monitoring active

“Achievement”[weeks 12-52]

• % lead goal achieved• % new sales goal achieved• Level of effort required

Renewal[week 52]

BARRIERS TO CUSTOMER SUCCESS

“Oriented”

Customer Challenges• None

Our Issues• Confusing reports module

“Progress”

Customer Challenges• Showing slow growth

Our Issues• None

“Active”

Customer Challenges• Website Form tech skills

Our Issues• None

Technical Set-up

Customer Challenges • Subdomain takes time

Our Issues• Blog migration is slow

“Initial Value”

Customer Challenges• Alignment on attribution

Our Issues• None

“Full Speed”

Customer Challenges • Create enough content

Our Issues• None

“Achievement”

Customer Challenges• Missed quarterly lead goal

Our Issues• None

Renewal

Customer Challenges• None

Our Issues• Waiting too long to renew

CUSTOMER SUCCESS TEAM

VP

Client Services

Sr. ConsultantSr. ConsultantSr. Consultant

Assoc. ConsultantAssoc. Consultant

Chief Customer Officer

Director,

Customer Support

VP

Customer Success

Sr. Support ManagerSupport Manager

Customer AdvocateCustomer Advocate

Director, Customer SuccessCustomer Success ManagerCustomer Success Manager

Customer Success Engineer

• Focus on enterprise

customers

• Make feature/integration

requests of Product team

• Onboarding focus

• Handle all inbound product

support requests

• Interact with Client Services or

Customer Success as needed

• Monitor & take action on

customer health

• Manage customer portal

• Work with marketing on nurture

programs

• Work with Product on self-serve

features