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Cloud computing and everything-as-a-service (XaaS) is driving significant business model change of traditional enterprise technology vendors. We are witnessing a seismic shift in the way technology is purchased, adopted and consumed across the enterprise. With progressive adoption of SaaS in the enterprise, industry watchers are declaring the impending end of the era of traditional enterprise software business. The old licensing model is being replaced with the new subscription-based business model which in an essence means that a tech company’s growth and profitability depends heavily on its ability to retain and expand existing customer relationships. To succeed in the age of everything-as-a-service, technology companies need to bring completely new set of capabilities to the table. It all comes down to making customers successful with their products. Most companies will need to revitalize their service offerings, introduce new sales models, and change organizational behaviors so that Customer Success becomes an integral part of their DNA.
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XaaS Success Services for Profitable Growth
Omid Razavi, Ph.D. 11.07.2014
© orazavi 2
The goal of Success Services is to drive business growth
Agenda
Packaging
Success Services packaging is key to sustained business growth
© orazavi 3
Customer Persona Dialogs and Actions
Know my business!
Deliver value!
Guide me!
Make it simple!
Fix it!
Teach me!
Business Strategic
CxO / VP LoB
Strategic/Economic Buyer
Functional Application
Users (Mgrs/EE)
Functional Buyer
Technical Technology
CIO / IT Admin
Technical Buyer
© orazavi 4
Business Strategic
CxO / VP LoB
Functional Application
Managers /Employees
Technical Technology
CIO / VP IT / Admin
Customer Persona Traditional Relationship Model
Consumption/ Adoption ?
Business Outcome ?
Strategic/Economic Buyer
Functional Buyer
Technical Buyer
On-Premise & Hosted
© orazavi 5
Business Strategic
CxO / VP LoB
Functional Application
Managers /Employees
Technical Technology
CIO / VP IT / Admin
Customer Persona
Business Insight Business Outcome Business Agility
Onboarding/e-Learning Adoption Services SS/In-App Guidance
Operational Services Integration Services Tech/Admin Support/Enablement
XaaS Success Services
Enterprise-Class XaaS Strategic/Economic Buyer
Functional Buyer
Technical Buyer
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Buy Implement
Churn
Value Growth
Renew
Value Discovery
Customers discover your company and your offerings
Value Definition
Customers evaluate those products and
services
Value Delivery
Customers buy them (hopefully) and implement
them
Value Realization
Customers realize the
benefits and the outcome
Value Validation
Customer decides to
renew, grow or to leave
Value Advocacy
R-Days Engage
Archetypal XaaS Customer Journey Map
Marketing Sales Services Customer Success
Renewal
Cross sell
Upsell
Support
© orazavi 7
Cross-sell
Expand
Deeper Use
Deliver KPIs
Deliver Outcome
Upsell
Facilitate Customer Interaction
Nurture Community
Crowdsource / Marketplace
Catalyze & Monetize the Network
Cust
omer
Val
ue
Time
1) Land more customers, faster!
2) Expand use, value and footprint!
3) Enable customer Advocacy!
Services (Primary)
Services (Shared)
Sales & Marketing
Strategies for Growth
Win! Go Live!
Land + Expand + Network Sales Motions
Generate Leads
Facilitate Evaluation
Streamline Purchasing
Simplify Onboarding
Rapid Delivery
Great Support
Manage Renewal
Expand Awareness
© orazavi 8
The goal of Success services is to drive business growth
Agenda
Packaging
Success services packaging is key to sustained business growth
© orazavi 9
Tier 3 M
ission Critical
Tier 2 Platinum
Tier 1 Prem
ium
Tier 0 B
asic
Price
Plan Capabilities
Included
10-15%
- -
-
-
20-25%
- -
- -
30% & up
- -
- -
Limited Extensive
Platinum Plans
Premium Plans
- -
-
- -
Basic Plans
Mission Critical Plans
Am
azon
Con
cur
Cor
ners
tone
Dem
adw
are
HP
Jive
SW
Mic
roso
ft
Net
Sui
te
Ora
cle
Sag
e
Sal
esfo
rce
SA
P
Ulti
mat
e
Wor
kday
Zend
esk Landscape Cloud Success Plans
© orazavi 10
Primary Org Responsible
No. of Capabilities
Capability Examples
Basic Plan Tier 0
Differentiated Plans Tier 1 Tier 2 Tier 3
Customer Support
20+ Response Time for P1 …
Customer Success
16+ Quarterly Business Review
…
Education 10 Role-based User Training
…
Professional Services
6 Integration Guidance …
Customer Community
6 Product Brainstorming
Cloud Operations
8+ Cloud Availability Dashboard
…
XaaS Product
6 Diagnostic Tools …
Other 8 Admin Services 3rd Product Support
…
Total 80+
Cloud Success Plans Tiered Plans by Primary Organization
Bas
elin
e C
apab
ilitie
s
Pre
miu
m E
xper
ienc
e
Pla
tinum
Exp
erie
nce
Mis
sion
Crit
ical
Exp
erie
nce
© orazavi 11
UX CX
Application Design
Mobile Design
Consulting
Support
Education
Website Design
CX: Customer Experience UX: User Experience
Community
Success Services Service Design
Digital and Non-Digital Experience
Service Design
+ Simplicity
Create seamless customer experiences that drive differentiation and long-term value.
© orazavi 12
Package 2014
Package 2016
Package 2015
Enablement
Sales
RevRec
Finance
CoE
Services
User Cases
Prod Mgmt
Customer
Workshop/ Early Access
SPM: Services Product Manager CoE: Center of Excellence
Success Services Co-Innovation Process
SPM
+ Success Science
© orazavi
§ Develop the customer success business plan § Focus on customer success and driving value § Align services, roles, processes and touch points and map
them to the customer journey § Enable the org with the required skills (domain, consumption,
technical), fund FTEs, acquire talent & develop leaders § Measure success and value – customer score, early warning,
critical accounts, consumptions, KPI’s and outcomes § Best-in-class benchmark against the competitors/industry
leaders and change as needed
Services Design and Delivery Our Approach
© orazavi 14
Service Design: § Easy to do business with and transparent in operations.
§ Scalable processes to on-board, retain and grow customers.
§ Automation for identified repetitive, low-value activities. Service Delivery:
§ Prevent issues before they occur. § Self-Service easy for customers to help themselves.
§ Multi Channel for customers to communicate and listen.
§ Fast to engage, resolve, learn and improve.
Services Design and Delivery Our Principles
© orazavi
Thank you!
Omid Razavi
15
linkedin.com/in/orazavi
@orazavi
Driving Extreme Value with Packaged Services, TSW Best Practices, May 2014, Silicon Valley
Cloud Customer Journey towards Business Outcome and Growth, TSE March 2014, Munich
Cloud Services that Scale and Delight Customers, TSW Transformations, Oct 2013, Las Vegas