Improving Customer Retention by Managing the Customer Journey Webinar Slides

KIA CX Consulting

Improving Customer Retention by Managing the Customer JourneyKia PuhmPrincipal, Kia CX Consulting

@kiapuhmwww.kiacx.com

KIA CX ConsultingKIA CX Consulting

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About Kia Puhm• Customer Experience Pioneer• 21 years experience leading extremely fast growing software

companies (> 2x YOY growth)• Computer Engineer University of Toronto • Licensed Professional Engineer (PEO) • Top 50 highest ranking business women in Switzerland

• Successful exits (Adobe & Oracle), IPO's (NASDAQ, SIX Swiss Exchange) & venture funding rounds

• Principal, Kia CX Consulting


the key to customer retention is knowing why your customers bought from you &

ensuring that you deliver on your commitment to provide what you sold



Improving Customer Retention




+1% = $10 million



1. Understand Renewal Challenges2. Demonstrate Value3. Make Customer Successful


Understand Renewal Challenges


Top Renewal Challenges

"Our renewals are 65-70% for year 1 customers. We are above 88% once we get past year 1." “We were losing a lot due to lack of

adoption. Seat vacancies and re-purposed licenses became a

leading indicator for defections.” “We weren’t delivering on what we promised during our sales campaigns.

The customers grew frustrated and left after their first year was finished.”


Year 1 Challenge


Year 1 Objectives

• Get customers using the product• Focus on quick wins • Establish trust


Year 1 Tips

• Welcome Call• Smart Start• Success Coach Program


Year 1Goal Focus on quick wins & adoption to establish confidence

Threats • Customer still questioning whether they made the right decision• Have not yet seen value from the product• Trust has not been established

Actions • Get customers using the product quickly• Provide early successes for the customer• Show customers how to get value from your product

Results Renewal rates can be up to 10-20% higher past year 1


User Adoption Challenge


User Adoption Objectives

• Manage to journey• Regular touch points• Quantify value delivered


User Adoption Tips

• Success Program• Proactive Check-Ins• Metrics & Benchmarking


User AdoptionGoal Manage to your customer journey; focus on objectives

Threats • Customer objectives unclear or changing• Journey to achieve goal not being followed• Customer not seeing/recognizing value delivered

Actions • Manage customer through journey• Quantify value delivered regularly• Use metrics & benchmarking to help customers win

Results QBR's improve retentionSuccess rate is 2.5x higher for customers that follow success program


Didn't Deliver Challenge


Didn't Deliver Objectives

• Level set on why bought• Get in sync early• Bring in sales if need be


Didn't Deliver Tips

• Warm transition call with sales• Level set meeting• Reconfirm objectives


Didn't DeliverGoal Level set on why bought

Threats • Product is not a fit for customer• Sales over-promised• Customer veers off course

Actions • Include level setting as part of onboarding• Understand expected results, confirm with customer• Manage customer to those results

Results Recognize immediately if product is not a fit and part ways orRe-set expectations to level set on what is achieveable


PollWhich of the following is the top renewal challenge for your organization?

1. Year 1: we have significantly more churn in year 1 than following years

2. User Adoption: lack of adoption is a leading reason for defections

3. Didn't deliver: product fails to deliver on sales promise

4. Other


Demonstrate Value


Demonstrate ValueUse data with customers to demonstrate tangible business value

1. Metrics are valuable, use them!2. Benchmark customer against best practice & relevant peer group


Metrics are valuable, use them!Use metrics to help your customers win & provide advanced warning when they don’t.

• Identify jeopardy accounts• Develop leading indicators• Build risk profiles


Benchmark customersUse objective data to give customers the ability to measure themselves against their peers.

• Provide performance metrics• Provide gap analysis• Deliver recommendations


PollHow mature is your organization's use of data in demonstrating value to the customer?

1. Missing: We don't use data

2. Ad-hoc: CS uses data when necessary to "save" accounts

3. Repeatable: CS uses data regularly to identify jeopardy accounts & react accordingly

4. Systemic: CS uses data regularly to demonstrate value & provides proactive recommendations


Make Customer Successful


Make Customer SuccessfulCreate opportunities for the customer to be successful

1. Be a strategic partner2. Deploy strategic messaging


Be a Strategic PartnerCollaborate on the customer roadmap.

• Be a strategic partner• Provide "long-term" view for revenue• Create success opportunities• Show future roadmap for continued

value generation


Deploy Strategic MessagingTarget content based on role, not customer.

• Message to individual• Segment events based on roles• Use metrics to determine communication


PollHow advanced would you say your organization is in deploying strategic partnering & messaging?

1. We are rather reactive with our customers & communicate when need be.

2. We provide customers with a success plan for the year & communicate accordingly to move them along in their journey.

3. We collaborate with our customers on their long-term roadmap and use communication strategically to help them achieve their goals.



ensuring that you deliver on your commitment to provide what you sold



ensuring that you deliver on your commitment to provide what you sold1. Use Customer Journey to navigate top renewal

challenges2. Use data to demonstrate value3. Be a strategic partner & deploy strategic messaging


How to Get Started: 4 Questions to Answer Now…

Do you know why your customers are your customers? Do you have a process in place to make first year customers successful? Do you know the leading indicators that cause customers to defect? Do your customers know how they compare to their biggest competitors?


About Kia CX ConsultingKIA CX Consulting accelerates business growth through Customer Experience innovation.

Kia provides the leading methodology to establish a disciplined and sustainable CX framework that drives revenue, retention and scale.

[email protected] @kiapuhm

www.kiacx.com


Meet Our Host

Paul PhilpFounder & [email protected]@pphilp

www.getamity.com


Q&A


Join Kia on April 26 for the next webinarin the Defining & Managing Your Customer Lifecycle

Visit getamity.com/resources to register!


Many Thanks To Our Presenter!KIA CX Consulting accelerates business growth through Customer Experience innovation. Kia provides the leading methodology to establish a disciplined and sustainable CX framework that drives revenue, retention, and scale.

[email protected] @kiapuhm

www.kiacx.com


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Improving Customer Retention by Managing the Customer Journey Webinar Slides