how to create a customer success charter
TRANSCRIPT
How to create a customer success charterAccelerate customer success and recurring revenue growth with a clear mission, goals and execution roadmap
June 2015Michele BallingerProduct MarketingServiceSource
Initial Sale Retention
+ Renewal
Upsell + Cross-Sell
Onboarding + Adoption
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Revenue Lifecycle Management
Drive business transformation with this five-step diagnostic approach to recurring revenue growth:1. Define a revenue lifecycle and
customer success charter
2. Conduct a revenue lifecycle assessment
3. Benchmark to the RLM Maturity Model
4. Identify gaps aligned to strategy and goals
5. Develop an action plan and prioritize
Retaining and growing revenue from existing customers
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Customer Success Charter Guide and Workbook
Complete workbook to help you create a compelling revenue lifecycle management business case.
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Failing to plan is planning to fail …
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“How do we accelerate time-to-first-value and deliver on our brand promise?”
“How do we organize around our customer and maximize retention?”
“How do we optimize business processes to lower the cost to serve, retain and expand customers?”
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Market experts report that product investments are being redirected to customer experience innovations.
“How do we design agile processes that are ultra responsive to customer needs?”
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Customer
A holistic, customer-centric approach accelerates success
ProductManagement
CustomerMarketing
CustomerSuccess
Account Management
CustomerSupport
Your customer success charter should not solely focus on your customer success team!
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Customer success is a result. Your customer success charter defines the path to achieve that result …
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Customer success charter blueprint
8
➤ Charter statement
➤ Mission and vision
➤ Objectives, goals and success measures
➤ Executive leader, team composition, roles and responsibilities
➤ Charter roadmap
➤ Risk analysis and assessment
➤ Communication plan
Writing a charter statement
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An introduction to the charter that provides context for all stakeholders, including:
– Why a RLM initiative is needed– Problem(s) that will be solved– Alignment to business strategy– Expected business impact– Cost not to solve
What is the charter statement?
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Key questions to answer• What questions are being asked by executive leadership?• What are current results or metrics?– Churn, retention, attrition rates– Cost of customer acquisition, retention, expansion– Renewal, cross-sell, upsell revenue
• What are the most significant problems?• What business goals are being impacted due to the
current state of business?• What is the expected business impact?• What is the cost of not implementing the charter?
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Example charter statement
A Revenue Lifecycle Management transformation initiative is being formed to organize our business around the customer to maximize customer lifetime value and grow recurring
revenue. The historic approach has undermined the company’s ability to cost-effectively deliver on our brand promise to our customers. This is resulting in high customer churn (over 15%), low
renewal yield due to heavy discounting, CAC over 6k, CRC over 3k, and a CEC of 3k per upsell and 1k per cross-sell. Execution of a new customer success charter will result in significant
operational efficiencies that will lower our cost to serve by 20% and increase recurring revenue by 15%. This initiative will help us achieve our 2016 revenue goals, as well as improve the roll-out of new mobile services to our customers. If we do not move forward with this initiative, then
we will continue to lose $500,000 a year due to inefficient processes, customer churn and missed revenue opportunities.
Defining your customer success mission and vision
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What are the mission and vision statements?These statements will be used across the company to communicate what you are going to achieve. • Vision statement– Outlines the desired future state – Inspirational “north star”
• Mission statement – Succinct overview of the charter, defining:• What it does• Who it does it for• How it does what it does
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Key questions to answer• For writing a vision statement (craft a future state):– What will communicate an image of the future that will
make people feel connected to the transformation?– What exciting possibilities will the charter unlock for
the company? For individuals?– Is the vision statement easy for people to repeat?
• For writing a mission statement:– What teams will be impacted by the charter?– What do people need to know to understand how their
job contributes to achieving the vision?– Can the mission be articulated by all employees?
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Example mission and vision statement
Failing to plan is planning to fail…
VisionWe lead the global educational services industry through innovation, expertise and by providing a seamless
customer experience that delivers measureable business results and exceeds the expectations of our customers.
MissionWe deliver high-quality educational content that provides measurable business results to colleges and
universities world-wide. We orchestrate customer success across all teams to provide a seamless customer experience that results in long-term and profitable customer relationships.
Setting goals, objectives and success measures
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Interested in learning more about the final steps?
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