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The most successful Enterprise SaaS companies know that growing revenue only through new customer acquisition is the less efficient way to scale. Rather, they understand that growing revenue within your existing customer base - through up-sells, cross-sells, and expanded use - is the most profitable way to scale. In fact, Enterprise SaaS companies that grow revenue - and company valuation - by expanding revenue within their existing customer base also know the key to making this work is to focus on - and operationalize - Customer Success. This presentation - How to use Customer Success to Prep for and Drive Contract Renewals - is from Pulse 2014, the biggest Customer Success industry event ever and included panelists from Concur, InsideView, Marketo
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How to Prep for and Drive Renewals
David Samuels, Concur Sean Cox, Marketo
Robert Asscherick InsideView
Concur
Vice President, Client Development
David Samuels• CNQR - 2013 - $545 Million• 20,000+ customers in 100+ countries• 4,000+ global employees• 25 Million registered users• Send over $12 Billion to banks per year• 750,000 logins daily
Customer Success Vision• Anticipating, identifying, and meeting
our customer needs is key to Concur’s continued success.
• Client Development exists as a focal point for the customer to achieve success with Concur.
• We will measure our impact through revenue growth, customer retention, and relationship health.
Driving Renewals• Renewals are driven by our Client Development
Organization• Client Executives manager entire client lifecycle• Traditionally, very high customer retention• Renewal are a source of new Cross-sell & Up-sell revenue• Saas Model requires uniqure approach to prepare for
renewal
Concur Customer Success Index
Product Set Engagement Client Satisfaction
ContractualPerformance
Feature Adoption
Data preparation for the renewals process
Concur Customer Success Index
Product Set Engagement Client Satisfaction
ContractualPerformance
Feature Adoption
InsideView
Director, Customer Success –
Key Account Group
Robert Asscherick
A pioneer in CRM Intelligence, InsideView provides a suite of software solutions for sales and marketing leaders that delivers critical intelligence directly into CRM. Our CRM Intelligence platform provides the industry’s most accurate market data, valuable business insights, and strongest professional connections so that marketing professionals can deliver more leads, sales executives can close more deals, and customer success managers can retain and grow accounts.
The InsideView CRM Intelligence Platform is integrated with Marketo, Microsoft Dynamics CRM, Oracle, Salesforce.com, SAP, and SugarCRM. Only InsideView improves performance at every stage of the marketing and sales process and is proven to increase leads, revenue and lifetime customer value.
Roles & Responsibilities: CSM vs Renewal Team
Success Starts at the Ears
Listen Up!
• It is fundamental to your success to understand your customer’s strategic initiatives.
• How are your products/services aligned to drive success in those initiatives?
• What itch are they really trying to scratch?
• Where/How else can you add value in the organization?
• Usage must support achieving these goals.
Your Customer’s Success Drives Renewals• CSM’s are your best weapon for
retaining and growing revenue
• Renewal and growth conversations should be a natural extension of your efforts to help your customers achieve their strategic goals
• Understanding your customers interdepartmental/divisional dependencies exposes organic whitespace conversations
• Renewal discussions should NOT be transactional - start early, discuss your customer’s growth expectations, long-term initiatives, next year’s plans, etc.
• Always be asking who, how, why, when can we be helping you more
• Knowing the external factors is mission critical – Leadership Changes, M&A, Funding, Product Releases, Expansion – The more you know, the better your team will protect and grow your revenue!
Marketo
Director of Account Management
Sean Cox
• 4 years at Marketo• Team of 20 Account Managers
• Responsible for retention & up-sell• Divided by customer size & segment• Portfolio of named accounts
Fun Facts about MarketoLeader in cloud-based marketing software>3,000 customers in 36 countries
>190 ecosystem partners
>40,000 Marketing Nation community members
>500 employees in U.S., Europe, Australia, Israel
(MKTO)
5. MEASURE& OPTIMIZEMaximize impact ofmarketing investments
1. PLAN & BUDGETPlan marketing investments and track expenses
2. GENERATE DEMANDAttract more potential customers
3. BUILDRELATIONSHIPS Establish deep and lasting 1:1 customer relationships
Modern Marketers Need a Complete Solution
4. DRIVE SALESDrive effective conversion from new prospect to sale
Marketo 2014 Goals• Focus on Dollar Retention Target as the core measure of
performance• Manage Upsell to existing bookings plan• Improve dollar retention• Fully transition from Renewal Management to Pro-active
Account Management
Renewal Metrics & KPIs
KPIs: Retention and URE$120K
Closed
$20K
$40K
$60K
$80K
$100K
$140K
Renewal Opportunity
Excl MYR
RetainedAPORPartial LossFull Loss
Retention Rate
Churn
Usage Right Expansion
AdditionalDiscount Reduction of
SKULoss of SKU
$100K
$0K
DiscountRecapture Increase of
Existing SKUTechnicalAdd On
$200K
$0K
Partial Loss Analysis
Usage Rights Expansion
$100K
Open
KPIs: Retention and URE
$120K
$20K
$40K
$60K
$80K
$100K
$140K
$160K
BeginningCustomer ARR*
RetainedARRPartial LossFull Loss
Net Annual Recurring Revenue Rate
Ending CustomerARR”Cross Sell
Churn
Expansion Revenue
Operational Descriptions
Batch Monthly Resolution Pacing
20%
50%
95%100%
0POR Month End
+30-30-60-90
Objective: Manage pacing of contract resolution against planned rates to ensure minimal in month compression of contracts, reducing risk of contractual exposure and reduced sales cycle
Plan – Batch Month End PacingActual M-1 Batch: 100% “Finance” ClosedActual M0 – Current Month BatchActual M+1 BatchActual M+2 Batch
Planned Retention/URE Closed Won By Batch
M-1 M0 M+1 M+2
Plan – Closed Won RetentionActual – Closed Won RetentionPlan – Closed Won Renew UREActual – Closed Won Renew UREPlan – Closed Non Renewal UREActual – Closed Non Renewal URE
Objective: Determine closed won contract dollars against monthly batch resolution and retention rates and associated URE with renewals
Clos
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Q&A