saastock 2016 keynote: win by design, not by chance: customer success as a growth engine by lincoln...
TRANSCRIPT
Win by Design, Not by Chance
Hello, my name is Lincoln Murphy I’m excited to be presenting to
@LincolnMurphy
Stay longer
Buy More
Expand Internally
Advocate Externally @lincolnmurphy
Grow BECAUSE of your effort, not IN SPITE of it
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
EXPANSION comes from the Customer’s
SUCCESS
Customer SUCCESS-
driven Growth
As customers SUCCEED and
EVOLVE…
…their relationship�with us should �
EVOLVE and GROW
Customer Success is NOT…• Just a Department• Customer Support• Account
Management• Happiness or
Delight
• Churn Mitigation• Saving Customers• “Checking in" with
customers• Customer hand
holding
Customer Success is a GROWTH
ENGINE
Customer Success Management is the Orchestration, Operationalization, Instrumentation, and Intervention designed to ensure customers achieve their ever-evolving Desired Outcome.
“
”- Lincoln Murphy @lincolnmurphy
Customer SuccessManagement
@lincolnmurphy
Your Success is meeting your REVENUE FORECAST
Their SUCCESS is achieving their
Desired Outcome
Our success is DIRECTLY tied to
their success
Customer Success Directly Impacts Company
VALUATION
Revenue x Multiplier = Value Company Va luat ion
Revenue x Multiplier = Value o There’s
more!
Company Va luat ion
Revenue x Multiplier = Value o Customer Lifetime Value (LTV)o Customer Acquisition Cost (CAC)o Net Revenue Retention (NRR)o Total Addressable Marketo Talent Acquisition
o There’s more!
@lincolnmurphy
Company Va luat ion
Year 1 Year 2 Year 3 Year 4 Year 5
80%
20%
Customer Lifetime Value
@lincolnmurphy
Year 1 Year 2 Year 3 Year 4 Year 5
> 95%
< 5%
Customer Lifetime Value
@lincolnmurphy
Customer Lifetime Value
Year 1 Year 2 Year 3 Year 4 Year 5
> 98%
< 2%Year 6
@lincolnmurphy
Resource Allocation
Year 1 Year 2 Year 3 Year 4 Year 5
> 98%
< 2%Year 6
@lincolnmurphy
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Interactions Start�
EARLY
“The seeds !of churn are !planted early” !– Lincoln Murphy!@lincolnmurphy!
Avoid�BAD FIT
Customers
Acquire customers with
Success POTENTIAL
Technical Fit
FunctionalFit
CompetenceFit
ExperienceFit
CulturalFit
@lincolnmurphy
Why Do You�
EXIST?
POWERis the capacity to alter the state of
others
You EXIST to alter the state of your customers
You can’t�TAKEpower
Power is GIVEN
Power requires TRUST
Newton’s 3rd Law
“What go around come around, kid.” – Cypress Hill
Make your CUSTOMERS
powerful!
They’ll make YOU�
powerful!
How will they make YOU powerful?
Stay longer
Buy More
Expand Internally
Advocate Externally @lincolnmurphy
How do you make your customers POWERFUL?
By making them SUCCESSFUL
RequiredOutcome
AppropriateExperience
Desired Outcome
What your customer needs to achieve
How they need to achieve it@lincolnmurphy
CustomerCharacteris9cs
Method
Customer(segment)
Desired Outcome
@lincolnmurphy
RequiredOutcome
AppropriateExperience
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Needstowork,no9metoeat
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Assignedsea9ng,WiFi,Foodservice,legroom
BusinessTraveler
Savemoney,enjoy
des9na9on
AirTravel
Desired Outcome – Air Travel
@lincolnmurphy
PointAèBSafely&Quickly
Cheapfares,snacks&drinks
FamilyGoingonVaca9on
@lincolnmurphy
Churn is the SYMPTOM of an Underlying Disease
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Without Customer Success• Stagnating Customers• Customer Churn• Revenue Churn• Reputation Suffers• TAM shrinks
• Sales Friction Increases• Sales Cycles Extend• CAC Increases• Talent Acquisition
Suffers• Company Value Drops
@lincolnmurphy
With Customer Success• Expanding Customers• Net Revenue Retention• Great Reputation• TAM Increases• Sales Friction
Decreases
• Sales Cycles Shorten• CAC Efficiency• Talent Acquisition
Improves• Company Value
INCREASES
@lincolnmurphy
Desired Outcome Customer Success is when customers achieve their
interactions through with your companytheir
“”- Lincoln Murphy
@lincolnmurphy
Customer. SUCCESS.
When your CUSTOMERS
Succeed...
YOU Succeed!
Thank You!@lincolnmurphy�[email protected]
Awesome! Thanks for your attention.Learn more about me at http://sixteenventures.com
And contact me via [email protected]
@LincolnMurphy
Win by Design, Not by Chance