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 by Forrester Research - How the Customer Success Industry is Evolving - is from Pulse 2014, the biggest Customer Success industry event ever.

1. Making Leaders Successful
Every Day

2. Customer Success Evolves
to the Next Stage
Four Steps To Institutionalizing CSM
Kate Leggett
Principal Analyst, Forrester Research
@kateleggett
kleggett@forrester.com

3. We have entered the “age of the customer”
Source: June 6, 2011, “Competitive Strategy In The Age Of The Customer” Forrester report

4. We have entered the “age of the customer”
Source: June 6, 2011, “Competitive Strategy In The Age Of The Customer” Forrester report

5. Our world is moving to a subscription economy
Credit: www.zuora.com

6. Our world is moving to a subscription economy

7. © 2012 Forrester Research, Inc. Reproduction Prohibited
And the business model for technology is
moving to subscriptions
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
14%

8. © 2012 Forrester Research, Inc. Reproduction Prohibited
And the business model for technology is
moving to subscriptions
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
21%

9. © 2012 Forrester Research, Inc. Reproduction Prohibited
And the business model for technology is
moving to subscriptions
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
13%

10. © 2012 Forrester Research, Inc. Reproduction Prohibited
The subscription model has tipped for many B2B software
categories
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”

11. © 2012 Forrester Research, Inc. Reproduction Prohibited
The subscription model has tipped for many B2B software
categories
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”

12. © 2012 Forrester Research, Inc. Reproduction Prohibited
The subscription model has tipped for many B2B software
categories
January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”

13. And because of this relationships are becoming more
important
Product Focused Relationship Focused
www.zuora.com

14. Good relationships have business value
March 2012 “The Business Impact Of Customer Experience, 2012”

15. Customer success
managers actively manage
customer relationships to
reduce churn, increase
existing revenue and
influence new sales

16. This business value can be easily quantified

17. HOW TO GET STARTED

18. © 2012 Forrester Research, Inc. Reproduction Prohibited
Interviews with customer success organizations told us
that there are many challenges to overcome
Challenge Rating
Organizational structure governance
Finding the right skill sets
Accessing the right data
Operationally managing the CSM
organization
Measuring the effectiveness of the team
18

19. © 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT
STRATEGY
ENGAGEMENT
PROCESSES
ENGAGERS
ENGAGEMENT
LEVERS
Customer success management takes coordinated
effort across four dimensions

20. © 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT
STRATEGY
ENGAGEMENT
PROCESSES
ENGAGERS
ENGAGEMENT
LEVERS
Customer success management takes coordinated
effort across four dimensions

21. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where are you in your growth?
21

22. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where are you in your growth?
22

23. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where are you in your growth?
23

24. © 2012 Forrester Research, Inc. Reproduction Prohibited
Tier your customers
24

25. © 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT
STRATEGY
ENGAGEMENT
PROCESSES
ENGAGERS
ENGAGEMENT
LEVERS
Customer success management takes coordinated
effort across four dimensions

26. © 2012 Forrester Research, Inc. Reproduction Prohibited
Define and standardize your processes
• Onboarding and product adoption
• Who is using product? Who is not?
• What features are being used?
• Are stickiest features being used?
• Processes to drive adoption
26

27. © 2012 Forrester Research, Inc. Reproduction Prohibited
Define and standardize your processes
• Best practice education
• What is the business goal of your customers?
• What value they are getting from your product
• How well are they aligned to best practices?
• Engagement meetings / Quarterly reviews
• Standardize the processes to quantify and
communicate business value
27

28. © 2012 Forrester Research, Inc. Reproduction Prohibited
Define and standardize your processes
• Managing at risk customers
• Do you have a definition of at risk?
› Lack of product use
› Difficulties with product (tickets, calls)
› Lack of engagement
• What are the processes to follow for at risk
customers?
• What is the intervention timeline? Who is
responsible?
28

29. © 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT
STRATEGY
ENGAGEMENT
PROCESSES
ENGAGERS
ENGAGEMENT
LEVERS
Customer success management takes coordinated
effort across four dimensions

30. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
30

31. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
31
Low-level of product complexity
Not responsible for new sales
Responsible for ongoing success of accounts

32. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
32
Low-level of product complexity
Responsible for ongoing success of accounts
Work hand-in-hand with sales, but not responsible for new sales
Goaled on
retention and
expansion
measures

33. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
33
More complex product
“Trusted advisor” with good product and domain knowledge
Focused on customer satisfaction and retention
Must have good relationship with sales

34. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
34
More complex product
“Trusted advisor” with good product and domain knowledge
Focused on customer satisfaction and retention
Must have good relationship with sales
No standard
measure of
success –
renewals, revenue
expansion

35. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
35
More complex product and more mature organization
Clear delineation of responsibility: the CSM owns the customer, Sales is
responsible for new business, customer service is responsible for support

36. © 2012 Forrester Research, Inc. Reproduction Prohibited
Where does your CSM group live?
36
More complex product and more mature organization
Clear delineation of responsibility: the CSM owns the customer, Sales is
responsible for new business, customer service is responsible for support
Goaled on
customer
retention

37. © 2012 Forrester Research, Inc. Reproduction Prohibited
Who makes a good customer success manager?
37
Passionate for serving customers
Relationship builders
Well organized and
good listening
skills
Good at conflict
resolution
Proactive and can-
do attitude
Technical enough
Best practice
knowledge
Domain expertise
Work at all levels of
an organization
Account managers

38. © 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT
STRATEGY
ENGAGEMENT
PROCESSES
ENGAGERS
ENGAGEMENT
LEVERS
Customer success management takes coordinated
effort across four dimensions

39. © 2012 Forrester Research, Inc. Reproduction Prohibited
What data do you need?
39
Customer
Goal
Inactive
users
Provisioned
users
Contract
Terms
Renewal
Realized
economic
value
Audit
records
Feedback
Advocacy
Support
feedback
Customer
feedback
Active
users
Measures
of success
Features
Alerts
Calls and
tickets
Onboard
ing

40. © 2012 Forrester Research, Inc. Reproduction Prohibited
What do you do with data?
Integration Validation Visualization
Analytics Exploration
Workflow
Data
Insights
Action

41. © 2012 Forrester Research, Inc. Reproduction Prohibited
The Advanced Playbook
LOB
Data
Enterprise
Insights
Outside-in
Action
• Customer360
• Alerts
• Surveys
• Automated Email
• Health Scorecards
• Playbooks
• Workflow
• Embedded Apps
• External Sponsor Alerts
• Automated Customer
Presentations
• Mobile
• Data Science

42. © 2012 Forrester Research, Inc. Reproduction Prohibited
ENGAGEMENT
STRATEGY
ENGAGEMENT
PROCESSES
ENGAGERS
ENGAGEMENT
LEVERS
Customer success management takes coordinated
effort across four dimensions

43. Thank you
Kate Leggett
Principal Analyst
kleggett@forrester.com
@kateleggett
Thank you

44. Download Your Free Copy Now