Promoting a Customer Success Culture

Promoting a Customer Success Culture

Today’s Host: Nichole Lemieux

Partner Experience Architect, Global Customer Success Cisco Systems, Inc.

2© 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

#successtalk

Customer Success Methodology#successtalk

People

Automation

Process Analytics


#successtalk

https://impact.cisco.com/resources/

Visit SuccessHub





#successtalk

[email protected]

[email protected]

@Schell_Shocked

@CiscoImpact

Let us know what you think!

Promoting a Customer Success Culture

Angel Rogers

Director, Customer Success ServiceSource


#successtalk

Create a Charter

Organize for Success

KPIs & Compensatio

n

Continuous Process

Optimization

Data-Driven Customer Journey

Customer Success is a Journey…Not a Destination


Customer Success Culture Tip #1

Create a charter to establish the importance of Customer Success and communicate the vision and mission internally and externally.


What is the charter statement?

An introduction to the charter that provides context for all stakeholders, including:

• Why a Revenue Lifecycle Management initiative is needed?

• Problem(s) that will be solved

• Alignment to business strategy

• Expected business impact

• Cost not to solve


#successtalk

Example Charter Statement

A Revenue Lifecycle Management transformation initiative is being formed to organize our business around the customer to maximize customer lifetime value and grow recurring revenue. The historic approach has undermined the company’s ability to cost-effectively deliver on our brand promise to our customers. This is resulting in high customer churn (over 15%), low renewal yield due to heavy discounting, CAC over 6k, CRC over 3k, and a CEC of 3k per upsell and 1k per cross-sell. Execution of a new customer success charter will result in significant operational efficiencies that will lower our cost to serve by 20% and increase recurring revenue by 15%. This initiative will help us achieve our 2016 revenue goals, as well as improve the roll-out of new mobile services to our customers. If we do not move forward with this initiative, then we will continue to lose $500,000 a year due to inefficient processes, customer churn and missed revenue opportunities.


What are the mission and vision statements?

These statements will be used across the company to communicate what you are going to achieve.

Vision statementOutlines the desired future state • Inspirational “north star”

Mission Statement Succinct overview of the charter, defining:• What it does?• Who it does it for?• How it does what it does?


#successtalk

Example mission and vision statement.

VisionWe lead the global educational services industry through innovation, expertise and by providing a seamless

customer experience that delivers measureable business results and exceeds the expectations of our customers.

MissionWe deliver high-quality educational content that provides measurable business results to colleges and

universities worldwide. We orchestrate customer success across all teams to provide a seamless customer experience that results in long-term and profitable customer relationships.



Organize for success by establishing executive sponsors and leadership,

as well as defining roles and responsibilities across teams.


Function

Role/Organization

Components of Customer Success

Component Activities

Activity Metrics

Customer Success

Customer Success Manager (CSM)

Land/Onboard

Service Enablement and Deployment to

Users

Customer Activation and Usage

Adopt

Usage Analysis & Optimization

Recommendations

Utilization Patterns

Expand

Identify Opportunities for Upsell/Cross-sell

Lead Generation

Renew

Proactive Renewal Management

Renewal % and Churn $

The Customer Success Function Defined


#successtalk

Strategic Customer Care Framework

Customer SuccessThis 7-pillar framework guides our project and program focus and keeps all teams and regions aligned.

Customer and Partners

Information and Profiling

Segmentation: Build, Scale,

Globalize Delivery & Support

Customer and Partners Research

Technology Investment

Drive Tools & Automation

Customer & Partner Mgmt -

Optimize Loyalty,

Renewals, Retention &

Adoption

Standards & Metrics

Excellence

Grow & Retain Talent

Enabled through the Strategic Customer Care Framework and supported by the Consumption Economics model


#successtalk

Customers are assigned a Customer Success Manager (CSM) who is focused on the customer experience and success for the duration of the relationship which leads to customer achieved

Return on Investment (ROI), upsell and renewal.

Customer Lifecycle Account Management Internal Focus

Pre Sales

•CSM as competitive differentiator

Onboard / Land

•Training, (feature Review, use cases), Reporting, etc.

Adopt

•Monitor consumption & consults on expanded use of collaboration

Expand

•Monitor Consumption, Account reviews, Ensuring ROI, etc.

Renew

•Consulting for Growth potential based on consumption

Promote Day 2 Services

Service Enablement

Usage Optimization Revenue Growth Proactive Renewal Management


#successtalk

Day 2 Support Overview

EvaluateUser Community Enablement

PlanDeploy Adoption Framework

ImplementUsage Analysis and Business

MonitorOptimizationConsultation

Optimize

Customer Lifecycle Account Management Customer Focus

Customers are assigned a Customer Success Manager (CSM) who is focused on the customer experience and success for the duration of the relationship which leads

to customer achieved Return on Investment (ROI), upsell and renewal.



Use the right Key Performance Indicators (KPIs) to measure program

effectiveness and create compensation models to drive results.


#successtalk

Measuring success should include a combination of Individual Management Based Objectives (MBOs) and/or team goals, based on role.

Metrics & Key Performance Indicators (KPIs)

Protect Defend Grow


EXAMPLEPredicting Risk to Increase Save Plays & Efficiency


#successtalk

Team Goals & Individual Targets

• Team Renewal Rate• Churn Target• Key Revenue Initiatives• Number of onsites• Number of account

reviews/consultations

Management Based Objectives (MBOs)

• Outcome of strategic business reviews

• Adoption campaigns for targeted growth

• New process / product implementation

• On site success metrics

Performance Measurement

Reactive Strategic & Proactive


EXAMPLECustomer Success Manager (CSM) Scorecard

Customer Management: “WHAT they do”

Desired Behaviors: “HOW they do it”


#successtalk

Customer Success Manager (CSM) Compensation Model Comparison

Lower Base + Higher Bonus

Higher Base + Lower Bonus

Rewards &

Incentives

CSM $ $Senior CSM $ $ $

Strategic CSM $ $


EXAMPLECSM Cockpit: Tailored KPIs Drive Performance

Opportunity Quota Churn Goal Churn To Date Churn Gap Pending Cancel EOQ Churn Bank

Rep 1 $ 1,000,000 $900,000 $100,000 $50,000 $50,000 $20,000 $30,000

Rep 2 $ 2,000,000 $1,800,000 $200,000 $140,000 $60,000 $80,000 $(20,000)

Consults Utilization

Account Reviews Weak Investigate Strong

Rep 1 45 29% 26% 45%

Rep 2 22 40% 32% 28%

Rep Dashboard for Goal Tracking and “Churn Bank”



Utilize a Revenue Lifecycle Management framework and maturity model to drive continuous innovation.




#successtalk

Assessing your revenue lifecycle maturity

Opportunistic“Our successes are accidental.”

Emerging“We’re starting to design the process for how customer engagement should work.”

Disciplined“We have a consistent but rigid process that we are trying to follow cross-functionally.”

Optimized“We’ve optimized our processes and are tracking them using industry KPIs.

We manage our business according to customer success KPIs.”

Strategic“We have clear visibility into the health of our customer base—that’s available real time

We make our strategic decisions based on the insights we’re getting through customer engagement.”

12

34

5

HIGHER RENEWAL REVENUELOWER RENEWAL REVENUE

Revenue Lifecycle Management Whitepaper: http://cs.co/RLM



Lower your cost to serve by utilizing data to drive the customer journey

and outcomes.


#successtalk

Map the entire

customer lifecycle

Create a customer journey map


143

15 days 30 days 45 days 60 days 75 days 90 daysPoint of Sale

First Automated System Backup

Actio

ns /

Mile

ston

es

Milestone 4: Run Disaster Recover plan printout2

5 6

Milestone 3: Training on Optimization and KPIs

Milestone 1: Subscribeto XYZ Company

Milestone 2: All usersprovisioned and system configured

Milestone 5: Meet with CTO to present plan

Milestone 6: Print out cost analysis report and present to board

How to Achieve Efficient and Consistent System Back-ups with ‘XYZ Company’

100%increase in productivity

57%reduction in hardware costs

30%average savings in IT spending

ACCELERATE YOUR SUCCESS!Disaster Recovery Diagnostics

Available


Things like usage data (TLUs)Available customer engagement data will depend on industry and maturity.

Web-based products can directly track usage data

Call home data

Customer surveys and NPS data

Webinar attendance

Email responses

Information access tracking

Support plan usage

Registration data

Machine usage data


#successtalk

The result: Outcome-based customer interactions that proactively drive the customer experience and ultimately increase customer lifetime value (CLV).

3 steps to create a data-driven revenue lifecycle

Centralize disparate data sources

Galvanize with data science techniques

Operationalize data to drive the right customer interaction, by the

right team, at the right time

1 2 3


#successtalk

Learn more about how to build a first-class Smart Net Total Care adoption team.

Design a Winning Customer Adoption StrategyMay 31, 2016

Upcoming Sessions#successtalk

Discover who the players are on your adoption team and what makes them critical to your future success.

Reduce Churn with Adoption All-starsMay 17, 2016

Find out how to improve the conversation to strengthen customer relationships.

Creating a Customer Value Exchange April 26, 2016

Thank you.

#successtalk