10 customer success growth hacks to increase ltv
TRANSCRIPT
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
10 Customer
Success Growth
Hacks
Lincoln Murphy
July
2014
2014 Gainsight, Inc. All rights reserved.
Lincoln Murphy - GainsightLincoln Murphy is Gainsight’s Customer Success Evangelist and is responsible for driving Gainsight's thought-leadership in the areas of Customer Success, retention, churn mitigation, and expansion revenue. Lincoln’s passion is creating efficient engines of growth for SaaS (Software-as-a-Service) and Subscription Economy companies.@lincolnmurp
hy
2014 Gainsight, Inc. All rights reserved.
Transactional Economy Subscription Economy
Vendor Success
Customer Success
Vendor Success
Customer Success
The New Chasm
2014 Gainsight, Inc. All rights reserved.
Vendor
Can I get a reference?
Want to buy more?
Ready to renew?
Who are you
again?
Transactional Economy Subscription Economy
Success
Retention
Advocacy
Expansion
Onboarding
Customer
The New Customer Lifecycle
2014 Gainsight, Inc. All rights reserved.
Rethinking the B2B Funnel
M A R K E T I N G
S A L E S
R E T E N T I O N
2014 Gainsight, Inc. All rights reserved.
Rethinking the B2B Funnel
• People at the top of the funnel get the glory and the pay... and we're saying, that needs to change
• But we've said "if your job is in that little part of the existing funnel, you don't really matter. Support, service, even Customer Success; outsource, automate, etc.
• We need a new metaphor; The "Funnel" idea is outdated
• Never liked it anyway; too passive anyway
M A R K E T I N G
S A L E S
R E T E N T I O N
2014 Gainsight, Inc. All rights reserved.
MARKETING
SALES
SUCCESS
The B2B Hourglass
Higher Growth Rate
Higher Multiple
Higher CAC Frontier
2014 Gainsight, Inc. All rights reserved.
M A R K E T I N G
S A L E S
S U C C E SS
The B2B Hourglass
• Simple idea with massive implications• You'll get as much or more growth from the
"bottom of the funnel" as you will the top• Clearly you need to get customers initially -
top of the hourglass - but as you do, more and more of your growth will come from that established customer base
• It you want to be a high-growth company, you can't grow just by acquiring net new customers
2014 Gainsight, Inc. All rights reserved.
Success Maturity Model
Revenue
Succ
ess
Mat
urity
AdoptionRetention
Expansion
Optimization
Transformation
$1 - $5 MM
$5 - $20 MM
$20 - $100 MM
$100 MM - $1 B
$1 B+
2014 Gainsight, Inc. All rights reserved.
… up and to the right
10 CSM Growth Hacks
1. Pitch your CSM Program2. TTFV: Time to First Value3. Success Goals Kick-off Meeting4. Ban the Check-in Call5. Mutually Assured Success6. People-Powered Retention Engine7. Orchestrated Advocacy8. Accelerate Up-Sell Cycle9. Churn Hazard Early Warning System10.Celebrate your Customers’ Success
2014 Gainsight, Inc. All rights reserved.
Pitch your CSM Program
• Promote your Customer Success initiative
• Is it a differentiator?• Pitch that you're going to
help them achieve success, not just functionally use the product
• All customers get a Success review 6-months after implementation (continue the narrative)
• Hack: Success Guarantee
… throw your competitors a curve ball
2014 Gainsight, Inc. All rights reserved.
Time to First Value (TTFV)
• Think of TTFV as a sprint; it’s the start that matters
• When the deal closes, the baton just got passed to the next sprinter
• Keep the same milestone-driven hustle post-sale to get customers to value quickly
• Hack: Identify quickest win and plan to get there
… we need more acronyms
2014 Gainsight, Inc. All rights reserved.
Success Goals Kick-off Meeting
• Know the goal of your customer
• Not the functional "job to be done" but the why
• Ask them "what does massive success mean to you?”
• Hack: schedule this meeting with your last customer (and all going forward)
...GOOOAAAAALLLLLL!
2014 Gainsight, Inc. All rights reserved.
Ban the Check-in Call
• “Just calling to check-in" doesn't work anymore
• Customers expect you to know how things are going
• They want you to call with value suggestions
• Check-in call means you don't know what's going on (and usually has selfish motives)
• Hack: Identify a value-added reason to call your top 10 customers today (then do it)
… please leave a message
2014 Gainsight, Inc. All rights reserved.
Mutually-assured Success
• Take goals captured in the kick-off meeting
• Agree on how you'll measure the goals• Have a regular, consistent, and frequent
process to review these• Reinforce the goal and the progress• Hack: "is that still why you bought?" and
"are we delivering what we said we would?"
… win-win
2014 Gainsight, Inc. All rights reserved.
People-powered Retention Engine
• Identify 3 people on their end• Identify 3 people on your end to
reach out to them at least once per month
• If someone leaves, there's relationship redundancy
• Systematize and automate this• Hack: Identify your 3x3: 3
people from your top 10 customers, and 3 from your team; meet
… B2B is still P2P
2014 Gainsight, Inc. All rights reserved.
Orchestrated Advocacy
• Identify your raving fans and become their fan
• Focus on 9s & 10s on NPS• Send them a thank-you gift,
ask them to talk with a prospect, ask to speak at your conference
• Advocacy actually leads to higher satisfaction
• Hack: Identify the "Promoters" on your last NPS and become their fan
…fans beget fans beget fans
2014 Gainsight, Inc. All rights reserved.
Accelerate Upsell Cycle
• When adoption is slow, it hurts up-sell velocity
• When adoption is fast, upsell comes quicker
• Create the same hustle around up-sell as around initial sale
• Hack: Create plan to get 5 newest customers to first upsell point in half the normal time
… license to use
2014 Gainsight, Inc. All rights reserved.
Churn Hazard Early Warning System
• Not just usage; they don't buy to use, they buy to get value
• Look to all the signs of disengagement (unsubscribes, not attending webinars, poor feedback, support issues)
• Hack: Identify 5 non-usage churn threats and build an alert system around that
… C.H.E.W.S
2014 Gainsight, Inc. All rights reserved.
Celebrate your Customers’ Success
• Customer Success Gong is bigger• Ring on Renewals• Ring on other Customer Success milestones
(Funding, New Clients, M&A, Personnel Changes, etc.)
• Hack: Buy a gong!
… their success is your success
2014 Gainsight, Inc. All rights reserved.
10 CSM Growth Hacks
1. Pitch your CSM Program2. TTFV: Time to First Value3. Success Goals Kick-off Meeting4. Ban the Check-in Call5. Mutually Assured Success6. People-Powered Retention Engine7. Orchestrated Advocacy8. Accelerate Up-Sell Cycle9. Churn Hazard Early Warning System10.Celebrate your Customers’ Success
… up and to the right
2014 Gainsight, Inc. All rights reserved.
Matrix Data Architecture
Reduce Churn
“Headwind”
Increase Up-Sell “Tailwind”
Scale Team Efficiently
Source: Measuring the ROI of Customer Success Management Solutions - Mainstay Company
What?
5% points 3% points 25%Why?*
How?
Ag
gre
gate
Gainsight Customer360
An
aly
ze Gainsight4-D Analytics
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tom
ate
Gainsight Predictive Playbooks
Gainsight Drives Growth
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Q&ALincoln Murphy - GainsightLincoln Murphy is Gainsight’s Customer Success Evangelist and is responsible for driving Gainsight's thought-leadership in the areas of Customer Success, retention, churn mitigation, and expansion revenue. Lincoln’s passion is creating efficient engines of growth for SaaS (Software-as-a-Service) and Subscription Economy companies.@lincolnmurp
hy