Customer Success Moving from Art to Science

neednudge.com @pteshimaAll Rights Reserved Paul Teshima 2014

Customer Success:

Moving From Art to

Science

Paul Teshima

Co-founder and CEO

Nudge

@pteshima

neednudge.com

neednudge.com @pteshimaAll Rights Reserved Paul Teshima 20143neednudge.com

How Many of You:

Are Billable?

Have a Quota?

Ever Received a Cape From a Customer?

neednudge.com 4


“Looking back it always

seems like a well thought out

plan, but really it was just a

bunch of smart people

begging, borrowing and

stealing resources to help

customers be successful”


Get to Product Market Fit

Make it Work, Then Drive Value

Learn to Scale

Grow the Base

A Customer Success Maturity Model


0-20 Customers

Get to Product Market Fit




Customers

0-20 20-100 100 – 1,000 1,000+

StageGet to Product

Market Fit

Make it Work,

Then Drive ValueLearn to Scale

Grow the

Base

CSMs 0 1-3 <8 By Segment

CSM Role N/AProduct

Engagement

Value

AdoptionBest Practices

Variable

CompN/A

50% Corp

25% Renewal

25% NPS

30% Corp

30% Ren/NPS

30% Upsells

30% Corp

30% Ren/NPS

30% Upsells

Systems CRMCRM

CSP

CRM

CSP

Marketing

CRM

CSP

Marketing

AMs N/A 0 By Quota By Quota

AM Role N/A N/A X-Sell X-Sell


Market Maturity

Solu

tion C

om

ple

xity

Professional Services

Customer Support

Customer Success

User Experience


Product Improvements

Product Training/Support

Customer Success Managers


How to Build the Business Case?


Experiment in Phase 2

1, 1, 1 1/3, 1/3, 1/3


Ensure you look at all

factors to drive product

engagement

Start building a business

case with what you have

Every customer matters

do whatever it takes

X Hire a CSM, just yet


20-100 Customers

Make it Work,

Then Drive Value


“Culture eats

Strategy for

Breakfast”

- Peter Drucker



Customers

0-20 20-100 100 – 1,000 1,000+

StageGet to Product

Market Fit

Make it Work,


Grow the

Base


CSM Role N/AProduct

Engagement

Value


Variable

CompN/A

50% Corp

25% Renewal

25% NPS

30% Corp

30% Ren/NPS

30% Upsells

30% Corp

30% Ren/NPS

30% Upsells

Systems CRMCRM

CSP

CRM

CSP

Marketing

CRM

CSP

Marketing




The Anatomy of a Great CSM

“Have” DomainOptimistic, But Cynical

Naturally CuriousGreat at Storytelling


CLUBSM


“Storytelling works because the

best ones are memorable”


Why Do You Need a Customer Success

Platform Now?

SALES CUSTOMER

SUCCESS


Start customer success

storytelling sessions to

drive culture

Hire for motivation and

teach the skills

Start implement key CS

practices now, to impact

future growth

X Put account managers on

accounts to upsell

X Let your CSMs become

Tier 1 support


100-1,000 Customers

Learn to Scale


How Many of You Measure:

Attrition by MRR?

by Customer Count?

By Net MRR?

Average time for new customers to be fully

on-boarded?


HOW WHAT



Customers

0-20 20-100 100 – 1,000 1,000+

StageGet to Product

Market Fit

Make it Work,


Grow the

Base


CSM Role N/AProduct

Engagement

Value


Variable

CompN/A

50% Corp

25% Renewal

25% NPS

30% Corp

30% Ren/NPS

30% Upsells

30% Corp

30% Ren/NPS

30% Upsells

Systems CRMCRM

CSP

CRM

CSP

Marketing

CRM

CSP

Marketing




I have a hard time

saying “no” to

anyone

CUSTOMERS

SALESMARKETING

PRODUCT

PARTNERS

SERVICE


“Few races are won at the start, but many races are lost there”- livestrong.com


Hold Sales/Services/Partners Accountable

< 30 Days 30 – 60 Days > 60 Days

Onboarding Watchlist


Set an Actionable Plan Based on Your

Product Value Lifecycle


Find Hunters That

Should Be Farmers


Our “Ideal” Customer Lifecycle


Avoid the Sample of One


Grow Exec Support by Developing a

Customer Success Cadence


Map our your customer

product value lifecycle

Put pressure on other

groups to do their part

Develop a customer

success cadence with

your executive team

X Stop CSMs from leaving

the team to other roles

X Hire AMs without domain

and product knowledge


1,000+ Customers

Grow the Base(faster, better, cheaper)



As You Grow You Need to Upsell

Source: Pacific Crest SaaS Benchmark Report


Cost to Renew/Upsell 5x Lower Than New



However New ASP is Still Too Low




Customers

0-20 20-100 100 – 1,000 1,000+

StageGet to Product

Market Fit

Make it Work,


Grow the

Base


CSM Role N/AProduct

Engagement

Value


Variable

CompN/A

50% Corp

25% Renewal

25% NPS

30% Corp

30% Ren/NPS

30% Upsells

30% Corp

30% Ren/NPS

30% Upsells

Systems CRMCRM

CSP

CRM

CSP

Marketing

CRM

CSP

Marketing




Running the Machine


The Organization Was Complex

Me

(92)

Consulting and

Education

(14)

Professional Services

(28)

Account Mgmt

(4)

Product and Premier Support

(34)

Customer Success

(12)


Leverage upsells/x-sells

as a growth lever

Document, train and sell

the value of the

“machine”

X Underestimate the value

of over communicating

X Stop storytelling about

customer success


#thebestmarketersintheworlduseEloqua


neednudge.com

THANK YOU

Paul Teshima

Co-founder and CEO

Nudge

@pteshima

neednudge.com

Leadership & Management

Customer Success Moving from Art to Science