Customer Success is maturing. Customers are like trees in recurring revenue business. The Customer Success function should run as a business, and the operating model is of customer portfolio management to drive customer success

1. Mastering the Business of Customer
Success
Guy Nirpaz
Co-founder & CEO of Totango

2. Customer Success
is growing fast! 100
80
60
40
20
0
2012 2013 2014 2015
Source: Google Trends

3. Customer
Success is
maturing

4. We’ve learned a lot
and we’re here to share

5. Practical Handbook for
Customer Success
Leaders
Available on Amazon / iBook and
for Customer Success Summit 16 attendees
http://www.farmdonthunt.com

6. The model is not
Hunting

7. Customer Success is
Farming!

8. Young Sapling
Needs close care to take
root

9. Growing Tree
Constant nurturing & care
is needed to ensure a
successful harvest
season

10. And Harvest

11. GrowingNew
z
In Renew/Upsell
Cancelled
SAVING
ACTIVITY

12. GrowingNew
The RECURRING nature of the
lifecycle determines the operating
model
z
In Renew/Upsell
Cancelled
SAVING
ACTIVITY

13. Customer Value
over
Customer Management
Source: The Customer Success Manifesto
New
ON BOARDING
ACTIVITY
Growing
NURTURING
ACTIVITY
In Renew/Upsell
HARVESTING
ACTIVITY
Cancelled
SAVING
ACTIVITY
DRIVERS OUTCOMES

14. Customer Success is a business
and It’s NOT Customer
Love
X

15. Customer Lifetime Value Calculation
+$10,000 / year
+$7,000 / year
-$1,500 / year
$5,500 / year
-$3,000 / year
Annual
Contract
Value
Cost to
Deliver
Service
Gross
Margin
Customer
Retention
Cost
Annual
Profit

16. Lifetime Profit
YEAR 1
(4.5K)
NET PROFIT
YEAR 2
$1.0K
NET PROFIT

17. Lifetime Profit
20%
CHURN
14%
CHURN
10%
CHURN
5 YEAR LIFETIME
$28.5K
LIFETIME
NET PROFIT
$45.0K
LIFETIME
NET PROFIT
$17.5K
LIFETIME
NET PROFIT
7 YEAR LIFETIME
10 YEAR LIFETIME

19. FALLACIES
of CUSTOMER SUCCESS3

20. Customer Success is
NOT Customer Support
X
1

21. Customer Success
is NOT Project Managemen
X 2

22. Customer Success is
Not Pipeline Management
X
3

23. The Challenges: Prioritization and Focus
1. Which customers need your attention…and why?
2. Where to invest your limited resources for best outcomes?

24. Portfolio Management
is The Model for
Customer Success
Management

25. Customer Portfolio
At Risk
In Harvest
Growing
New

26. Drivers
Results
Risks
ONBOARDING
QBR /
NURTURING
USAGE BASED
CAMPAIGNS
SAVING
PROGRAMS
ESCALATION
Drivers
PERIODIC EVENT-BASED
SUCCESS PROGRAMS & PLAYS
At Risk
In Harvest
Growing
New
The Engagement

27. Drivers
Results
Risks
ONBOARDING
PROGRAMS
ESCALATION/
SAVING PLAYS
Drivers
RETENTION
PROGRAMS
PERIODIC EVENT-BASED
SUCCESS PROGRAMS & PLAYS
At Risk
In Harvest
Growing
New
Engagement Model of
Young Customer
Success Organization

28. Drivers
Results
Risks
ONBOARDING
PROGRAMS
ONBOARDING
PLAYS
ON-GOING
NURTURING
USAGE BASED
CAMPAIGNS
SAVING
PROGRAMS
ESCALATION/
SAVING PLAYS
PLAYS
Drivers
RETENTION
PROGRAMS
PERIODIC EVENT-BASED
SUCCESS PROGRAMS & PLAYS
At Risk
In Harvest
Growing
New
Churn
--------------------
Retention
--------------------
Upsell
Save Rate
--------------------
Active Escalations
METRICS
Time to Value
--------------------
Satisfaction
Results
--------------------
Adoption
--------------------
Utilization
The Portfolio

29. Farm Don’t Hunt and Manage your Grove
Summary

30. Farm Don’t Hunt and Manage your Grove
Summary
Run Customer Success like a Business

31. Farm Don’t Hunt and Manage your Grove
Summary
Portfolio Management is the Operating Mode
Run Customer Success like a Business

32. We’ve got a huge future ahead!
Profitable Customer Success Model
THANK YOU!