where is the roi? justifying a renewal or upsell using actual customer usage data

Where is the ROI?

© Panaya | An Infosys Company PANAYA2 © Panaya | An Infosys company PANAYA2 © Panaya | An Infosys company

Where is the ROI? Justifying a Renewal or Upsell Using Actual Customer Usage Data

VP Customer SuccessAriel Utnik

© Panaya | An Infosys Company PANAYA

About Panaya & Me

About Panaya:• Panaya is the market leader in

change analytic and cloud-based software testing, tailored for ERP.

• Acquired by InfoSys for $230MAbout me:• In love with the Customer Success mission,

with special focus on churn reduction and prevention

© Panaya | An Infosys Company PANAYA4

Build more value faster for your company and ours—and we can prove it.

The Mission of a Customer Success Team

PANAYA

“

“Customer success associationhttp://www.customersuccessassociation.com/definition-‐customer-‐success-‐management/


Have you heard from your customers that the tool costs too much vs the value they get?


Are you able to justify renewal price increase or upsell for customers that are “heavily” using your system?


Do you have any idea what is the $ saving your customer gets from your tool?

Are you able to prove it?


So how can we prove it?

Show me the money..


1. Build a post usage ROI tool

2. Validate the tool

3. Update your customer journey to collect relevant data for the post ROI

4. Manage the post usage ROI meeting

The steps for your own post usage ROI


• Start with your pre-sale ROI toolRemember the promise and language…

• Think from the customer ROI meeting backwardWhat points you want to make

What story do you want to tell

• Quantify the saving per activity / eventRefer to activities that customer understand and value

• Use industry standard, cost surveys and past experienceUse reference that customer accepts and trusts

Build a post usage ROI tool


• Build the calculation based on formulas with simple ability to update the parametersParameters may be different for every customer

• Generate the data from your application / totangoIs your customer aware of their level of usage?

• Don’t overshoot, customer should trust this ROI after he understands the detailsData must be trusted

Build a post usage ROI tool


• Start with your organizationCSM, Sales, Product must buy it first

• Industry peer validatione.g. VP Global business application from Ness

• Customers validation“The Fact Sheet with the numbers in front of my eyes are a very good picture”

“This is a proof that indeed we’re having benefits using your tool”

“This is encouraging… This brings us to focus more on testing”

• Is a CFO convinced to buy the product when he gets this data?Numbers must talk

Validate the tool


• Collect the data from day 1Highest customer attention is during the onboarding

• Incorporate those parameters into your customer journey processThere is no “post usage ROI” step in your onboarding

Collect data from customers


• Make it simple, talk in savings ($, Hr, Mo to ROI)Must be based on the customer KPIs

• Define in advance what is the desired outcome of the meeting (renewal? Upsell?)This will dictate your meeting strategy

• Make sure your champion is involved and aligned with the ROI preparationThe best you can ask for is that the champion will present part of it

• A good meeting should be with the executive sponsor and the championDon’t hold the meeting with the wrong audience

Manage the post usage ROI meeting


• Don’t get into the details if not neededLess is more

• Better to use excel format and not fancy presentationsKeep the engineering look and feel

• Before you leave the room confirm your desired outcome A.B.C – Always Be Closing

Manage the post usage ROI meeting


Summary

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PANAYA

Customer Success -‐ build value fast, and prove it!

Prove it in a way the customer can quantify and understand

where is the roi? justifying a renewal or upsell using actual customer usage data

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