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Transforming Cisco Through Customer's Lifecycle Journey of Accelerated Value Realization
KEN O’REILLY Director of
Customer Success, Cisco
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LANCOPE – AQUIRED 1/1/16
Customer Profile
Network Security
Provides Network Visibility and Security EfficacySophisticated Product
On Premise/Perpetual Model
Multiple Phase Engagements
No product telemetryRely on Services
Consumption
Customer Base
Fortune 1000Large Enterprise
Government/Public Sector Commercial
There is always a phase II
• Highly technical skill set• Overworked
• High stakes • Extremely high turnover
• +50 products in portfolio• Very difficult to measure
value
The Law of Customer Behavior
The natural tendency of customers left unattended or frustrated is towards non-use
of the product…
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68% OF CUSTOMERS LEAVE BECAUSE THEY THINK YOU DON’T CARE ABOUT THEM.
“—Rockefeller Corporation, 18 Customer Facts Marketers Can’t Ignore
“
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68% OF CUSTOMERS LEAVE BECAUSE THEY THINK YOU DON’T CARE ABOUT THEM.
“—Rockefeller Corporation, 18 Customer Facts Marketers Can’t Ignore
“A 5% increase in customer retention can increase a company’s profitability by 75%.
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68% OF CUSTOMERS LEAVE BECAUSE THEY THINK YOU DON’T CARE ABOUT THEM.
“—Rockefeller Corporation, 18 Customer Facts Marketers Can’t Ignore
“A 5% increase in customer retention can increase a company’s profitability by 75%.
The probability of selling to an existing customer is 60% to 70%. The probability of selling to a new prospect is 5% to 20%.
Forbes, Never Underestimate the Value of Retention
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LAST 20 YEARS OF SECURITY:GOT A PROBLEM? BUY A BOX
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THE SECURITY EFFECTIVENESS GAP
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THE SECURITY EFFECTIVENESS GAP
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THE SECURITY EFFECTIVENESS GAP
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CUSTOMER SUCCESS IS CLOSING THE GAP
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Transitioning to Customer Success
Historically
Customers May or May Not Achieve
Business Outcomes
Transactional Customer
Interactions
Reactive Resource Mobilization when
Customer Has an Issue
Manual, Disjointed or Lack of Data
Land and Renew Focused Selling
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Transitioning to Customer Success
Historically
With Customer Success
Accelerated Speed to Business Outcomes
Customers May or May Not Achieve
Business Outcomes
Transactional Customer
Interactions
Consultative & Collaborative
Customer Interactions
Reactive Resource Mobilization when
Customer Has an Issue
Proactive “Guardrails” with Customer Success to Keep Customers on
Adoption Path
Manual, Disjointed or Lack of Data
Automation & Analytics Focused
Land and Renew Focused Selling
L / A / E / RLifecycle & Outcome
Based Selling
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Customer Success Can Mean…
A Function or Functional
CapabilitiesA Program
e.g., Global Customer Success Team,
Customer Success portion of Engineering,
Ops, Services, etc.
e.g., Cross-Functional Customer Success
Program (CSx) to create functional capabilities
A Mindset
Helping the customer achieve their goals first
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Customer Business
Goals
Customer Success Operating Model
DIGITAL PLATFORM
ENGINEERED OUTCOMES
SELLER OUTCOME
ENABLEMENTLIFECYCLE PROCESS
PARTNER LIFECYCLE
ENABLEMENT
TIERED LIFECYCLE SERVICES
CUSTOMER HAS ABUSINESS GOAL
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Land Adopt Expand Renew
Field Sales**
Renewal Sales**
Marketing
Tech Svc/Adoption**
Education**
Advanced Services**
Ops/Supply Chain
On-boarding**
CuSMs**
Touchpoint back to PM/Eng
Product Mangement and Engineering define outcomes (by product line) that lead to higher adoption, accelerated
value realization, expansion, and renewal
CSx Operations and Data Analytics “Success Science”
** Partners could be engaged (partially or fully) in any of these functions
Integrated Customer Success Model
Engineering BE • Define outcomes
and journeys• Optimize through
success science• Close to CuSM,
Service, Sales touch points
CuSM and Services• Closely integrated
lifecycle• Get customers to
outcomes• Provide company
with Success Science insight
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Customer Lifecycle Model
LAND
ADOPT
EXPAND
RENEW
Owns the Account Optimizes Opportunity
Maximizes UtilizationFrictionless Renewal
Essentials of Customer Success
In a recurring revenue model, the customer lifecycle is continuous
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Roles, Responsibilities, and Success Metrics
Organize for success by defining roles and responsibilities in the customer lifecycle and developing key performance indicators (KPIs) to measure effectiveness with compensation models that produce results.
Customer Lifecycle ModelCustomer lifecycle stage Land Adopt Expand Renew
Primary role Solution enablement
Customer health and value realization Revenue growth Customer
retention
Key responsibilities Deployment and training
Monitor consumption & deliver business outcomes
Monitor consumption and recommend complementary solutions
Create compelling offers for continuedservice based on consumption
Key performance indicators
Customer activation Usage patterns Lead generation Renewal % and
retention rates
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CUSTOMER SUCCESS DIGITAL ECOSYSTEM
Investment in Infrastructure
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CUSTOMER SUCCESS DIGITAL ECOSYSTEM
Investment in Infrastructure
CustomerEngagement
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CUSTOMER SUCCESS DIGITAL ECOSYSTEM
Investment in Infrastructure
CustomerEngagement
LifecycleApproach
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CUSTOMER SUCCESS DIGITAL ECOSYSTEM
Investment in Infrastructure
CustomerEngagement
LifecycleApproach
MeasuringSuccess
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Customers must actively use your services and realize value quickly to create loyalty.
Customer success fuels your business.
Reduces cost to serve
Increases revenue/
wallet share
Improves customer retention
Promotes sticky
features
Identifies expand
opportunities
Initial Sale5-35% of revenue
Post Sale70-90% of revenue
Totango, Customer Success: Putting the Pieces Together
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Data-driven Success Sciences
Timing• Last email
send date
Company-level data• Install base
Size• Services
purchased• Contract status• Renewal date• Segment
Contact-level data• Email status• Job ranking
Digital behavior• Target contact
known• Pain point
known
Consumption behavior• Portal
registration• Reports run
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Outcome Value Chain
Vendor
Platform People Portfolio Finance
AdvocacyConsumptionCapabilities
Customer
The digital ecosystem works with other business groups to deliver value chain
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Customer Success Lifecycle Programs
All of these programs provide a customized experience for each customer by helping them:
1. Accelerate product value 2. Ensure long term product success3. Build a strong relationship with Cisco
Universal Customer ProgramLifecycle Manager
1:40 LCM to Customer ratio
Strategic Account ProgramCustomer Success Manager1:6 CSM to Customer ratio
Digital Engagement Program
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Universal Lifecycle Model for Net New Customers
Welcome Call
90 DayProgress
Call
Launch discovery process with Sales
Follow up on call action items
Deliver additional Initiative Mapping content
Send follow up email with Initiative Mapping
content
Conduct Welcome Call
Promote Expert Series and training
Talk about AS/TR/IM
Internal Processes
Sync BP/AS/TR
Initiative Mapping exercise
Pull report cards
Follow up actions fromreport card analysis
Verify Community Registration
Download software license
Sync w/ internal teams
Follow up on content/events provided in previous 90 days – did you find it helpful?
Recap email with IM Content if available
Pull Report Card
Prep for call based on report card analysis
Check in before progress call
Follow up on call action items
Pull report cards
Follow up actions from report card analysis
CustomerIdentified
Customer Interactions
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ü On current releaseü Consumes product training and
professional servicesü Takes eLearning modulesü Reviews uses case documentsü Attends expert series webinar and
reviewed othersü Engages in the onboarding and
customer success maturity model program
Profile of a Successful Customer
☐ Participates in Stealthwatch early release program
☐ Attends regional user group meetings
☐ Stays current on product roadmap☐ Takes part in Stealthwatch health
checks☐ Uses specific integrations (e.g. host
group automation, SIEM integration)
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Link between Service Consumption and Product Success/Satisfaction
0
5
10
15
20
25
30
0 2 4 6 8 10 12
Cus
tom
er E
ngag
emen
t
NPS Score
Customer Engagement vs. NPS ScoreCustomers that consume more services rank Stealthwatch higher
Assets Most Consumed
Training > 1000 users
Webinars > 750 users
Use Cases > 800 downloads
Professional Services > 500 customers
Onboarding > 100 customers in 2016 “
80% of customer data will be wasted due to immature enterprise data “value chains,” as poor data practices remain one of the biggest hurdles to marketing success.
—IDC, CMO Customer Experience Predictions for 2014“
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Customer Success Security Scorecard 1456
Customers Worldwide
86%
5% 9%
Unassigned
HighTouch
Virtual
% of Customers covered per RTM
Health Score Metrics
Customers covered by CS
236
Usage Measurements
Adoption Barrier Frequency Renewal Rate Illustrative
+138 +6
0%
50%
100%
Aug'16 Sept '16
>8
6>8
4>6
2>4
0>2
0% 5% 10% 15% 20% 25% 30%
ReportingServiceTraining
EnhancementsResources
Sales Metric Contribution
Deployment Ratio 30%
Feature Adoption 20%
Usage Measurement 30%
Value Index 20%
Total 100%
>8
6>8
4>6
2>4
>2
70%
40%
3% 4%
74%
43%
23%
52%
A B C D
Q1 '16
Q2 '16
98%
35%
9% 10%
99%
39%
9% 13%
A B C D
Q1 '16
Q2 '16
Health Score Distribution Trend
Feature % of Deployment
3% 12%
74% 104% 115%
136%
0 30 60 90 120 180
%Current Impact
65% 70% 75% 80% 85% 90%
Q1 Q2 Q3Product 1 Product 2
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Loyal and Dedicated Customers
“Support and resources have been especially invaluable when building a baseline and strengthening our initial Stealthwatch configuration.”
— Jason Edelstein, Engineer, The University of Chicago
True Partnership with Customer Success“We have recurring calls with the Customer Success team to go over ongoing issues, new challenges, or just to bounce ideas off of. It’s a partnership where we work together to improve the product.”
— Engineer, Global 500 Financial Services Company
96% of surveyed customers have realized faster time to value from working with Cisco's Customer Success organization.
92% of surveyed customers are likely, very likely or extremely likely to re-engage with Cisco's Customer Success organization for Learning & Development/Training.
Customer Retention+90
%
Net Promoter Score (NPS)75
Revenue Expansion+40%