Developing a World Class Customer Success Organization
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The document outlines key principles for developing a world-class customer success organization, emphasizing that the focus should start with the customer and their desired outcomes. It highlights five common mistakes to avoid, such as implementing a one-size-fits-all strategy and neglecting the evolution of customer needs. Additionally, it provides five steps for building an effective customer success team, including logical customer segmentation and developing a structure for measuring success.
![Starting with [anything other
than the customer]
Mistake #1](https://image.slidesharecdn.com/developingaworldclasscustomersuccessorganization2-160303214429/85/Developing-a-World-Class-Customer-Success-Organization-11-320.jpg)
![Not understanding that
things will change
[and being okay with that]
Mistake #5](https://image.slidesharecdn.com/developingaworldclasscustomersuccessorganization2-160303214429/85/Developing-a-World-Class-Customer-Success-Organization-19-320.jpg)
Developing a World Class Customer Success Organization
- 1. Developing a World Class Customer Success Organization
- 2. Should you Charge for Customer Success? Omid Razavi Lincoln Murphy Customer Success Evangelist Gainsight
- 3. “The purpose of business is to create and keep a customer.”
- 4. Customer Success is when your customers achieve their Desired Outcome through their interactions with your company. Copyright© 2016 Sixteen Ventures. All Rights Reserved.
- 5. Copyright© 2016 Sixteen Ventures. All Rights Reserved.
- 6. Customer Success as a Purpose Desired Outcome Adoption Expansion AdvocacyRetention Copyright© 2016 Sixteen Ventures. All Rights Reserved.
- 7. Customer Success Management is the proactive orchestration of the customer’s journey toward their ever-evolving Desired Outcome. Copyright© 2016 Sixteen Ventures. All Rights Reserved.
- 8. Customer Success Management is Real Customer Relationship Management
- 9. Creating a World Class Customer Success Organization
- 10. 5 HUGE (But Common) Mistakes to avoid
- 11. Starting with [anything other than the customer] Mistake #1
- 12. Mistake #1: Starting with “Anything Other Than the Customer” Don’t start your Customer Success Strategy with: • KPIs • Tactics • Hiring • Tools and Technology
- 14. Mistake #2: Building a “One-size-fits-All” Strategy Creating a one-size-fits-all strategy for customers that require different: • Cadence and Depth of Touch Points • Coverage Levels • Interaction Modalities • Skillsets • Expertise and Vertical Knowledge
- 15. Hiring only “CSMs” Mistake #3
- 16. Mistake #3: Hiring only “CSMs” • Customer Success needs leadership and an equal seat at the table • Don’t hire a “CSM” and hope they can do everything; not fair to anyone • Definition of a CSM (or other practitioner) varies across different segments • A one-size-fits-all definition of a “CSM” that works across different logical customer segments and does EVERYTHING
- 17. Not acting as if… Mistake #4
- 18. Mistake #4: Not acting as if… • Act like you’re an actual org • Even if it’s only you right now • Have a KPI to measure Org Success • Could be a short-term metric • Have a Measure for Individual Success • Develop a Health Score for the Customer
- 19. Not understanding that things will change [and being okay with that] Mistake #5
- 20. Mistake #5: Not understanding that things will change • There is no "set it, and forget it” in Customer Success • Evolution is Inevitable (and a good thing) • Team members evolve • The org evolves • The market evolves • Your product evolves • Your company evolves • Your customers evolve
- 21. 5 Steps to Building a World Class Customer Success Org
- 22. Start with Logical Customer Segmentation Step #1
- 23. Step #1: Start with Logical Customer Segmentation • On a per-product basis • Logical is the key word • It will be unique to your company / situation: • Customer Revenue • Revenue-potential • Use case • Vertical Copyright© 2016 Sixteen Ventures. All Rights Reserved.
- 24. Understand the Desired Outcome for each Segment Step #2
- 25. Step #2: Understand the Desired Outcome for each Segment • Desired Outcome • What they need to achieve? (Required Outcome) • How they need to achieve it? (Appropriate Experience) • Map Success Milestones • Include Success Gaps • Joint Accountabilities • What do they have to do to achieve it? • What do you have to do to ensure they achieve it? Copyright© 2016 Sixteen Ventures. All Rights Reserved.
- 26. Copyright© 2016 Sixteen Ventures. All Rights Reserved. Desired Outcome Mapping
- 27. Mapping Success Milestones Copyright© 2016 Sixteen Ventures. All Rights Reserved.
- 28. Copyright© 2016 Sixteen Ventures. All Rights Reserved. Mapping Success Milestones
- 29. Create a Coverage Model Step #3
- 30. Step 3: Create a Coverage Model •Determine Required Coverage • Humans • Technology • Mix of both • Modalities & frequency
- 31. Time vs. Data-Based Engagement
- 32. Use Technology to Scale
- 33. Identify Required Roles Step #4
- 34. Step #4: Identify Required Roles •Determine Roles you need to fill • CSMs • Ops • Customer Marketing • Advocacy • Expansion • Renewals
- 35. Step #4: Identify Required Roles •Ideal Individual Contributor Characteristics • Executive presentation skills • “people” person • Analytical • Closer • Copywriter
- 36. Develop Measures & Management Structure Step #5
- 37. Step #5: Develop Measures & Management Structure • Leadership • COO / CRO • Chief Customer officer • VP Customer Success • Measurement • Weighting Org vs. Team • NRR + Customer Health? • Compensation Models • Variable vs. Salary • Quota vs. Goals
- 38. Customer Success is when your customers achieve their Desired Outcome through their interactions with your company. Copyright© 2016 Sixteen Ventures. All Rights Reserved.
- 39. “The purpose of business is to create and keep a customer.”
- 40. Lincoln Murphy Customer Success Evangelist Gainsight Questions? @lincolnmurphy lmurphy@gainsight.com