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Customer Success Maturity Model How to build & scale customer success
| Date post: | 26-Jan-2017 |
| Category: |
Technology |
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Customer Success Maturity ModelHow to build & scale customer success
Vice President, Strategic Accounts
Founder/CEO
Vice President, Global Enterprise Account
Success is the new sales.
Customer Success Funnel
Pre-Sales
referrals
renewals, up-sell& cross-sell
initial salesnew logos $$ $
Post-Sales
The Case for Customer Success
MRR
$10m$9m$8m$7m$6m$5m$4m$3m$2m$1m$0m
1 5 10 15 20 25 30 35 40 45 50 55 60 65 70
MONTHS
5% Churn
2.5% Churn
0% Churn
-2.5% Churn
Customer Success Maturity Model
People Culture Process Journey Metrics Technology Segmentation
Start Up
Emerging
Enterprise
Scaling
How do I build, scale, & optimize a high-impact team & a culture of customer success?
People
Customer Success Maturity Model
CSM leader, CSM team 1-15, dedicated support
VP of Customer Success, CSM managers, CSM team 15-75
Chief Customer Officer, CSM team 75+, CS operations teams
Founder, round robin tag-teaming, support rep
People Culture Process Journey Metrics Technology Segmentation
Start Up
Emerging
Enterprise
Scaling
Volume of Clients
High $
Low $
Annual Contract Value
Low # High #
More
Product Complexity
Less
Rule of Thumb
Each CSM should manage ~$2 million in ARRCSM managing > 50 clients needs automation
How Do I Scale CSMs?
PeopleCSM Compensation
Base Only
Base
Base
Bonus
Variable
MODEL 1
MODEL 2
MODEL 3
PeopleCompensating CSMs & Sales
Growth75%
Retention75%
Growth25%
Retention 25%
Sales CSM
Base40%
Variable60%
Base75%
Variable: 25%
Variable Variable
Culture
Customer Success Maturity Model
Customer Success team created but success culture somewhat siloed
Customer-first mentality, celebration of wins, x-functional collaboration
United as a company around customer-centric KPIs and experience
Product/market fit, customer acquisition, “scrappy” success culture
People Culture Process Journey Metrics Technology Segmentation
Start Up
Emerging
Enterprise
Scaling
Customer success is not a department, it’s a company culture.
CustomerSuccessCulture
CX Initiatives
Cross-FunctionalAlignment
Customer Acquisition
VP on Exec Team
Board-Level Focus
Basic CS MetricsShared
Culture
Customer Success Culture Maturity
Product/Market Fit
Empowered
Process
Customer Success Maturity Model
Basic onboarding, implementation, support & metrics
Formalized repeatable processes across the customer journey
Specialized teams and processes focused on customer experience
Ad-hoc & reactive
People Culture Process Journey Metrics Technology Segmentation
Start Up
Emerging
Enterprise
Scaling
Process Maturity Journey Process
Reactive
Processes mature, expand and evolve
ProactiveRepetitive
Collaborative
Predictive
Transformative
Journey
Customer Success Maturity Model
Onboarding, implementation & renewal journeys defined
Proactive journey defined & executed across lifecycle
Comprehensive customer experience tracked & optimized
Limited, siloed & fragmented journey
People Culture Process Journey Metrics Technology Segmentation
Start Up
Emerging
Enterprise
Scaling
First visitor brand
impressionOnboard &
DeployValue
Realization RenewalEngaging & Evaluation
Adopt & GrowBuying
Marketing
Sales
Product
Support
Success
Customer
Implementation
JourneyCustomer Success Journey Map
Focus on the customer’s perspective first & then optimize the experience across the company
Someone always owns the moment.
-DISNEY PRINCIPLE
Metrics
Customer Success Maturity Model
Standard SaaS metrics around usage, retention & growth
Predictable modeling and forecasting
Advanced insights & predictive analytics
Focused on sales MRR, customer count & basic health
People Culture Process Journey Metrics Technology Segmentation
Start Up
Emerging
Enterprise
Scaling
Core Success Metrics
MRR/ARR, GROSS CHURN, NEGATIVE CHURN,
CRR, DRR, CMRR, LTV,# OF CUSTOMERS
Engagement Metrics
PRODUCT ENGAGEMENTCUSTOMER ENGAGEMENT
TEAM ENGAGEMENT
Success Analyses
CHURN ANALYSISDOWN-SELL ANALYSIS
COHORT ANALYSISEXPANSION ANALYSIS
Subjective Metrics
RED, YELLOW, GREENREASON CODES
Customer Success Metric Matrix Metrics
Technology
Customer Success Maturity Model
Disparate & siloed systems, cobbled & manual insights
Customer success management solution
Advanced automations, integrations, workflows, & analytics
Email, calendar & spreadsheets
People Culture Process Journey Metrics Technology Segmentation
Start Up
Emerging
Enterprise
Scaling
TechnologyCobbled-together approach to retention
TechnologyCustomer Success Technology Stack
Sales CRM
Subjective Insights
Marketing Automation
Product Usage
Customer Support
Subscription Billing
Task Management
CX/VOC
CUSTOMER SUCCESS
PLATFORM
Segmentation
Customer Success Maturity Model
Basic segmentation, prioritization & processes
Segmentation by size & territory; specialized teams & strategies
Global segmentation by size, geo & verticals; advanced specialization
No segmentation; prioritization on few key accounts & squeaky wheels
People Culture Process Journey Metrics Technology Segmentation
Start Up
Emerging
Enterprise
Scaling
SegmentationProgression
NONE
SMALL
SMB
BIG
CENTRAL
MM
EAST
ENT STR
WEST
AMER APACEMEA
RETAIL TECHENT
JAPAN
HOSP FIN SERVMEDIA
Segmentation
Segm
entat
ion M
aturity
Success is the new sales.
