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www.tsia.com
Customer Success Maturity Model
Presented by:
Phil Nanus, VP Research, Customer Success, TSIA
www.tsia.com Source: TSIA Services Organization Study
“Customer Success”
is gaining ground
as the term to describe
the com...
www.tsia.com
Common practice for the following service lines to report into a Global
Services or Customer Success executiv...
www.tsia.com
Answering the Key Questions of Customer Success
What
How
When
Why
Who
Customer Success is the intersection be...
www.tsia.com
HOW
WHO
WHY
Customer Success Maturity
CS
Capability
Phase 1
‘Forming’
Phase 2
‘Storming’
Phase 3
‘Norming’
Ph...
www.tsia.com
Contact TSIA to learn more about
Customer Success research and
membership. Let’s talk! >
Phil Nanus
VP Resear...
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Customer Success Maturity Model

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Customer success continues to be an emerging practice as both technology companies and nontraditional industries move to a new subscription revenue model. A maturity model framework helps companies establish their customer success organizations and initiatives, as well as allowing them to see where they stand and how they can improve as they move through the stages of maturity. www.tsia.com.

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Customer Success Maturity Model

  1. 1. www.tsia.com Customer Success Maturity Model Presented by: Phil Nanus, VP Research, Customer Success, TSIA
  2. 2. www.tsia.com Source: TSIA Services Organization Study “Customer Success” is gaining ground as the term to describe the complete global services organization. Customer Success as a Theme
  3. 3. www.tsia.com Common practice for the following service lines to report into a Global Services or Customer Success executive: Customer Success, Consulting Services, Technical Services, and Field Services 3Source: TSIA Services Organization Study SS Support Services PS Professional Services ES Education Services FS Field Services CS Customer Success Customer Success
  4. 4. www.tsia.com Answering the Key Questions of Customer Success What How When Why Who Customer Success is the intersection between the promise of a suppliers' technology and the customers’ desired business outcome. Customer Success is delivered through time, event, and value based interactions between the customer, the supplier, and the suppliers’ technology. Customer Success requires prescriptive customer engagement throughout the lifecycle between the supplier and the customer to ensure the promises of the suppliers’ technology are realized. Customer Success organizations and/or initiatives are focused on effective technology Adoption that leads to increased Renewal Rates and Expansion opportunities. The people that are executing against all of the above are members of Customer Success organizations and are commonly referred to as Customer Success Managers (CSMs).
  5. 5. www.tsia.com HOW WHO WHY Customer Success Maturity CS Capability Phase 1 ‘Forming’ Phase 2 ‘Storming’ Phase 3 ‘Norming’ Phase 4 ‘Performing’ Charter What is Customer Success? Customer Success is thematic. Alignment to one of three core charters; Adoption, Renewal, or Expansion. Multiple Charters that facilitate effective Adoption leading to higher renewal rates and expansion opportunities. Effective Adoption Supplier does not collect any Adoption information. Supplier collects limited information about customer engagement but it is manual. Automated collection of customer interaction with supplier technology, but low adoption. Effective adoption practices including information on Who, Quantity, Stickiness, Data Quality, Efficiency, and Business Outcomes. Prescriptive Engagement Supplier is acting in a legacy model where they sell technology and Customer has responsibility all delivery. Begins to establish Voice of the Customer feedback programs including NPS, Effort Score and CSAT. Begins to establish proactive activities including Customer Journey map, Onboarding program, and QBRs. Documented customer success plans and workflows and playbooks established that align to Value, Event or Time based triggers. Economics/Metrics and Scalable Funding XaaS pivot, and supplier starts to evaluate if Churn is a problem as recurring revenue models become increasingly more important. Funding customer success on a Project basis to improve Customer Experience. Funding from existing Support (COGS) or Sales (S&M) organizations as team is being established. Measuring Renewal, and Churn. Monetizing Customer Success funded out of COS. Customer Success at scale funded out of S&M. Measuring CAC, CRC, CEC and Expansion Rates. Organizational Structures and Capabilities Not documented, beyond marketing customer success stories or references. There may be a CS or CX leader or there may be a matrixed program between other leaders and the rest of the company. CSM or analogous roles exist, but are initially reactive in nature. Limited to no structured work product. More proactive CSM role. Career Path Matrix, CS organization reports directly to CEO or into Customer Growth team. 5 WHAT WHEN
  6. 6. www.tsia.com Contact TSIA to learn more about Customer Success research and membership. Let’s talk! > Phil Nanus VP Research, Customer Success

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