how to drive more upsells in 2015 using customer success
DESCRIPTION
Did you know? The fastest growing SaaS companies add 3X more ACV from upsells than companies growing slowly according the 2014 Pacific Crest SaaS Survey. Upsells accelerate growth, expand Customer Lifetime Value (LTV), and make acquisition spend more efficient. But when it comes to upsells, timing is everything. Knowing when to present an offer to a customer is just as important as knowing what offer to present. Join Gainsight Customer Success Evangelist Lincoln Murphy and Steli Efti, Co-Founder and CEO of Close.io, as they dig into the following key questions on using Customer Success to drive expansion with your existing customers: Specifically, we cover: - How can you use Customer Success data to know exactly when to present an upsell offer? - How can you use your Customer Success operations to know the best offer to present? - Who should own the upsell process in your organization? The most successful Enterprise SaaS companies know that growing revenue only through new customer acquisition is the less efficient way to scale. Rather, they understand that growing revenue within your existing customer base - through up-sells, cross-sells, and expanded use - is the most profitable way to scale. In fact, Enterprise SaaS companies that grow revenue - and company valuation - by expanding revenue within their existing customer base also know the key to making this work is to focus on - and operationalize - Customer Success.TRANSCRIPT
November 18, 2014
How to Drive More
Upsells in 2015
Housekeeping
• Q&A panel on your right
• Recording for colleagues who can’t make it
• All attendees will receive slides
• Twitter hashtag #customersuccess
Our Speakers
Lincoln MurphyCustomer Success Evangelist
@LincolnMurphy
Steli EftiCo-Founder & CEO Close.io
@Steli
What We’ll Cover Upsells, Expansion
Revenue, and Negative
Churn
1
2 How Customer Success
Drives Upsells
3 Operationalize the
Upsell Process
4Organizational
Considerations
5 Q&A
Upsell is a Growth Accelerator
• Increased Customer Lifetime Value
(LTV)
• Improved Customer Acquisition Cost
(CAC) Efficiency
• Greater Dollar Revenue Retention
(DRR)
• Reduced Logo Churn
LTV
ACV
DRR
Growth
No Upsells?
Lower DRR /
Higher Churn
Failure to capture latent
expansion revenue
Valuation may suffer due to
unrealized revenue potential
[ ]
Expansion Revenue
$
Expanded Use/Additional
Seats
Add-Ons
One-time Purchases
Additional Services
Complementary Products
Negative Churn
Each year, the typical customer
pays New Relic 14% more than
last year. Negative churn is
incredibly attractive [...] if the
company were to cease spending
money to acquire new customers,
the business would still grow at a
14% CAGR.
“
”Tomasz Tunguz
Redpoint Ventures
http://tomtunguz.com/new-relic-s-1
Upsells
http://www.forentrepreneurs.com/2014-saas-survey-1/
Upsells
http://www.forentrepreneurs.com/2014-saas-survey-1/
CUSTOMER SUCCESS:
Ensuring your customers achieve their
Desired Outcome through the use of
your product.
No Customer Success = No Upsell Opportunities
Operationalize the Upsell Process
1Be clear on
what success
means for your
customer
3Benchmark
where your
customers
start
6Peg upsell
opportunities
to certain
success
milestones
8Present the
offer at the
right time
2Set goals with
your
customers
4Identify
success
milestones
5Design journey
along those
milestones
7Know what
offer to present
for which
milestone
Upsell Hacks
Use self-service as part of
trials & POCs
Mention upsells early in their lifecycle Improve time to first value to upsell faster
Enable self-service activation where possible
Offer concierge onboarding
Mention upsells early in their lifecycle
Improve time to first value to upsell faster
Enable self-service activation where possible
Offer concierge onboarding
Use self-service as part of
trials & POCs
Organizational Considerations
1Who owns
upsell in
your
organization
?
2How do you
compensate
them?
3How is this
handled at
various stages
of CSM org
maturity?
A Gift from Steli
http://www.unscalablestartup.com/ultimate-upselling/
Train a New Team
www.gainsight.com/customer-success-university
http://gainsight.com/pulse
November 18, 2014
Thank you!