kicking ass with customer success; the ultimate growth hack for startups

KICKING ASS WITH CUSTOMER SUCCESS

Lincoln Murphy, Founder, Sixteen Ventures

The Ultimate Growth Hack for Startups

Presented at:

Lincoln Murphy@lincolnmurphy

For a Deep-Dive on Customer Success

http://sixteenventures.com/case2015

“The purpose of business is to create and keep a

customer.”

Startups are a BusinessThe Product / Market Fit Fallacy

You’ve got 99 Problems…but Product / Market Fit isn’t One

Startups need Churn to Learn?No. This is a dangerous lie.

Customer Churn Kills!• Company Value• Total Addressable Market• Employee (and Founder) Morale• Time!

Customer Success is Hot• Now part of the SaaS Business Model• Driver of Customer Lifetime Value (LTV)

• Customer Stays Longer• Customer Pays you More• Customer Brings in Other Customers

Customer Success is not Required•You will not FAIL without it•But you will not THRIVE

Without Customer Successyou will end-up…

AVERAGE!!!!!

AVERAGESUCKS!

What is Customer Success?

Customer Success is not

Customer Support

Customer Success is when your customers achieve their Desired

Outcome through their interactions with your

Customer Success Management is proactively managing the process of your

customers achieving their Desired Outcome

When to do Customer Success?

Before you Launch (or Now)…whichever is sooner

Customer Development Process• Identify their Desired Outcome

• Required Outcome• Appropriate Experience

• Build your MVP around that• Give them what they need, not what they want

Why is Customer Success the Ultimate

Growth Hack?

David SkokMatrix Partners

http://www.forentrepreneurs.com/why-churn-is-critical-in-saas/

Customer Success Drives First-order Growth

Source: http://www.saastr.com/its-not-just-cltv-its-your-trgcltv-that-matters-total-all-in-revenue-generated-by-your-customer/

Customer Success Drives Second-order Growth

Dollar Net Renewal Rate60% 70% 80% 90% 100% 110% 120%

Source: Altimeter and FactSet 10/2014

10x 7X

Customer Success Drives Third-order Value

All of this is too important to be left to chance.

Customer Success is Transformational1. Acquire the Best Customers2. Engage & Deliver Value Quickly3. Expand Their Investment4. Mobilize your Advocates5. Retain & Renew Customers

1. ACQUIRE THE RIGHT CUSTOMERS

ReadyWillingAbleAcquisition EfficiencySuccess PotentialExpansion PotentialAdvocacy Potential

Ideal Customer Profile

Ideal Customer ProfileReadyWillingAbleAcquisition EfficiencySuccess PotentialExpansion PotentialAdvocacy Potential

Success Potential• Only Acquire Customers with Success Potential

• Technical Fit• Functional Fit• Experience Fit• Support Fit

Use Customer Success to influence your

Marketing and Sales

“Enter the conversation already taking place in your customer’s mind.” – Robert Collier

“Enter the conversation already taking place in your customer’s mind.” – Robert Collier, c1937

Customer Success = Their Desired Outcome

The topic of the conversation in their

Customer Success = Their Desired Outcome

2. ENGAGE & DELIVER VALUE QUICKLY

The initial sale is critical, but it’s just the tip of the iceberg

Success Milestones are the steps required

for a customer to achieve their Desired

3. EXPAND THEIR INVESTMENT

“Customers that take an upsell offer stay longer”

- McKinsey & Company

Customer Lifetime Value is the Key Metric

4. MOBILIZE YOUR ADVOCATES

“Customers that come in through advocacy stay

longer and buy more.”- McKinsey & Company

“Customers that advocate for you become stronger customers themselves.”

- Influitive

5. RETAIN & RENEW CUSTOMERS

When Customer Success is operationalized around Desired

Outcome-based Success Milestones, renewals become a non-issue…

renewals just happen.

WHAT ABOUT CHURN?

customer.”

Lincoln Murphy@lincolnmurphy

kicking ass with customer success; the ultimate growth hack for startups

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