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 Develop a Quarterly Business Review - is from Pulse 2014, the biggest Customer Success industry event ever and included panelists from Gild, Box, Zuora, Workday
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
How to Develop a Quarterly Business Review
1. How to Develop a Quarterly
Business Review
Stephanie Stapleton, Gild Helen Valentine, Workday
April Oman, ZuoraNina Bankar, Box
2. Stephanie Stapleton
Gild is changing the way everyone – from startups to Fortune
1000 organizations – finds and evaluate technical talent. Gild
scours the web for developers, using predictive technology to
automatically evaluate their abilities. That means you not only
find candidates – you know who can get the job done.
Director, Customer Success
3. • Launched June 2012
• The Product: Gild Source
• Our Customers: Talent Acquisition Leaders,
Recruiters, and Developers looking to hire
software engineers
• Currently 250 Customers
• 10 People on our CS Team
• High-Touch Engagement Model
• Everyone gets QBRs!
Gild Snapshot
4. QBRs: Alignment between Buyers and Users
Alignment - Accountability - CS as Trusted Advisor - ROI Conversation
BUYE
R
Customer Success
6. April Oman
VP, Customer Success @ Zuora
Zuora is the global leader in subscription commerce and billing, helping
companies in every industry transition to the Subscription Economy.
Enterprise leaders and high-growth companies alike use Zuora's multi-
tenant cloud platform to launch, scale, and monetise their subscription
services. Zuora's applications work where traditional ERP applications
fail: Subscription pricing, quoting, orders, billing, payments, and
renewals. Built from the ground up by SaaS industry veterans from
salesforce.com, PayPal, and Netsuite, Zuora services innovative
customers like Box, DocuSign, Zendesk, News UK, Dell, Xplornet,
Ustream and Fairfax Media. Learn more www.zuora.com .
7. April Oman
• Background in consulting, customer relationship management, SaaS, customer experience, and Human
Resources
• Joined Zuora Aug 2012
• VP of Customer Success:
• Responsible for Customer Retention, Adoption, Renewals, Identifying Upsells/Expansion
Opportunities, Connecting Customers to Advocacy Initiatives, 9 Keys for Subscription Success & NPS
8. Seven+ Years of Incredible Growth
The Leader in Commerce, Billing and Finance
Solutions for the Subscription Economy
Zuora
founded
Series A; First
product
launched
Series B,
Zuora
featured in
WSJ
Series C; Zuora
announces 1B in
contracted
revenue
Series D,
Trademarks
Subscription
Economy; EMEA
expansion
$20Bn
contracted
invoice volume;
Series E funding;
50th product
release
2013201220112010200920082007
Offices: Foster City, London, Sydney, Beijing, Chicago, Atlanta
$132.5M
Funding
650+
Customers
300+
Employees
95%
Customer Sat
Zuora wins
AlwaysOn
Company of the
Year Award;
expands to Asia
2014
Zuora wins Gold
Stevie Award for
Customer
Service
Excellence
10. Delivering Customer Success is Hard
Define it Organize around it Measure it
There is complexity in how you
In SaaS
You have to worry about the relationship;
how do you ensure renewal, reduce churn & get that upsell?
11. We were
Disconnected from our customers
We needed a blueprint
A unified answer to a simple question:
What do our customers want from us?
12. Our blueprint
• Customers embraced it
• Analysts embraced it
• Zeos embraced it
9 Keys for Subscription Success
14. So, what do CSMs do?
• Structured using 9 Keys for Subscription Success
– Doesn’t have to be all 9 keys at once
• Triggers
– Usage, Renewal Date, Upsell/Expansion Opportunity, Escalation
• Customer Attendees
– Marketing (price), Sales (acquire), Finance (bill, collect, account,
measure), IT (scale); they all care about nurture
• When
– At least 90 days post go-live
Optimization Workshops
15. So, what do CSMs do?
• Preparation
– Review usage, order form terms (are they using what they
bought?), Zuora roadmap, tickets, conversations with the customer
to identify goals & challenges
• Facilitated workshop
– Use a whiteboard!
• Outcomes
– Priorities aligned to business goals
– Relationship based on value
Optimization Workshops (continued)
17. AppendixVision: Enable our customers to achieve success in the subscription economy.
CSM
• Increase product adoption
• Retain every customer
ensuring easy renewal
• High customer satisfaction
• Identify upsell/expansion
opportunities
• Connection to advocacy
activities
• Operationalize the 9 Keys
Customer Success Teams & Priorities
Global Support
• Answer tickets
• Foster relationships through
enhanced customer support
community experience
• Maintain customer success
rating
• Reduce support ticket average
resolution times
• Reduce Prod (incidents)
impact & resolution times
Zuora University
• Create expertise; Increase
Customer, Partner &
Employee understanding of
all Zuora products
18. The 9 Keys for success with recurring revenue
Price to support
business objectives
Enable new customers to
subscribe on any channel
Send accurate, easy to
understand bills
Collect cash fast
through multiple
methods
Give customers control Close books faster while
remaining compliant
Gain visibility into key
subscription metrics
Roll out price changes
and experiment
Scalable, Reliable,
Secure
Appendix
19. Nina Bankar
Box
Box’s mission is to make businesses of all sizes more productive,
competitive, and collaborative by connecting people and their most
important information. Content on Box can be securely shared and
easily accessed on the web, through iOS, Android and Windows Phone
applications, and extended to partner applications, such as Google
Apps, NetSuite and Salesforce. Headquartered in Los Altos, CA, Box is
privately held and backed by several leading venture capital firms and
strategic investors.
Sr. Manager, Customer Success
21. Why QBRs?
• Business objectives and use cases
• Goals and success metrics
• Data and more data
• Integrations
• Next Steps
22. Helen Valentine
Workday, Inc. (“Workday”) is a leading provider of enterprise cloud-based
applications for human capital management (HCM), payroll, financial
management, time tracking, procurement, and employee expense
management. Our applications are designed for global enterprises to
manage complex and dynamic operating environments. We provide our
customers highly adaptable, accessible, and reliable applications to
manage critical business functions that enable them to optimize their
financial and human capital resources.
Director, Customer Success
Operations, Workday
Quick snapshot of Gild’s history:-2 year old company. -Who are our buyers and users. -Product is Saas Model, Subscription based per seat or team per year-Customer Success’ structure & our high-tough model-Lead into everyone Getting QBRs and our main focus as a new company to drive alignment between buyers & users and the ROI conversation.
Early on, we realized QBRs were important for a number of reasons. One, was that we needed to get our buyers and our users on the same page. Buyers had grand visions the users weren’t exposed to. What we cover: Feedback/NPS, Usage, Engagement Level of Customers, Suggestions for Success, Executive Relationships, Product Roadmap. The entire QBR is framed as a conversation to get the buyers and users aligned.Customer Success enables this conversation. Drive alignment on vision & goals through education of the user and buyer. Joint Accountability: Hold the users accountable for using the tool. Hold the buyers accountable for enabling users’ success. CS gets positioned as the Trusted Advisor because we are in the middle of important visionary conversations and we are the subject expert on the field. Help coach and drive the conversation.Alignment leads to a clear ROI conversation.
ROI:The ROI conversation has 2 main outcomes.It is necessary for the Customer’s Success. It can greatly impact your value prop and company strategy. Customer Relationship-Need to have measurable goals, realistic, time driven. If you don’t have ROI conversations, you get a lot of people that love your customer service but aren’t going to renew because they can’t proved the product worked. We made that mistake a few times in the beginning before our QBR process. Because we weren’t having the specific QBR conversation, we weren’t having specific ROI conversations. A customer would tell us how much they liked us and our new product, but they hadn’t been keeping track of getting hires with it or expanding their pipeline. When the renewal came around, they told us they hadn’t been measuring, so they couldn’t renew and didn’t have proof of ROI. -Coaching Customers – At a young stage with a startup product, the QBR is a good time to reaffirm your value prop and get the customer reexcited about the potential and vision-Learning from Customers – New products have ROI you’ve never even thought of! Let your customers educate you. Learning from customers can have a huge impact on Company Strategy, especially at a small stage. -We had positioned ourselves as a discovery tool for recruiters to find developers. Our customers confirmed that was part of ROI, but they also said a huge part was developers leveraging the system to get info before interviews to engage people for their team. We sold Value Prop A, then they got A, B & C, so we changed our Company strategy to reflect those new value props. -Alignment with Customer & Gild. Alignment with users and value prop. If they aren’t doing customer success, then they will be missing the mark. -Using QBRs to discuss ROI will help your value prop and drive sales.
These are the essentials that drive success in the Subscription Economy.Pricing and packaging is a lever that businesses use in the subscription economy to drive growth. So it’s essential that you have a system that allows you to price and package to support your business objectives.In the subscription economy, we find that it’s essential to make it easy to sign on new customers rapidly, across any channel. Online self service, through a sales rep, or even via partnersOnce you’ve signed up customers, an essential to ensuring sure you keep customers happy, and keep churn low is to ensure that you are sending accurate and easy to understand bills to those customers in a timely fashionIn the subscription economy you are collecting cash more often, and through many payment methods. So it’s essential to maximize your cash collections across your customer base without increasing the efforts and costs associated with collecting that cashOften, one of the major reasons why customers churn is that they feel they are not in control of their subscriptions. In the subscription economy, since customers are constantly using your service, it’s essential that they feel that they are in control. They should be able to change their subscriptions as their needs evolve without experiencing billing disruptions, or receiving confusing bills as a result of changes. In the subscription economy, as your business grows your finance team is inherently dealing with many more transactions than in a traditional product business. A single order can spawn 12 invoices, those invoices can then spawn even more payments, and yet more revenue recognition events. As a result, it is essential that your finance team is able to properly close the books every month, and so it in a compliant and auditable fashion.Since your growth model and your operating plan is now based on forward looking metrics like ARR growth, MRR growth, customer lifetime value, it is essential that you gain visibility into these key forward looking subscription metrics so you can make timely business decisions.Once you have visibility into these metrics, then it is essential to compare how you are tracking against your company’s original growth objectives. Often businesses find that when they analyze this data, they see opportunities to achieve more growth, or reduce churn by trying new pricing strategies and iterating on their pricing models. So it becomes essential to be able to quickly roll out new price changes.And finally, it is essential that you feel confident that the system that is the heart of your subscription revenue is scalable, secure, and enterprise grade.