Customer Success Summit 2016 General Session Presented by: Guy Nirpaz, CEO & Founder, Totango

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

2. In case of an
emergency…

3. In case of an
emergency…

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

5. Guest Speakers from these notable companies :
We can see it by any market parameters
including summit interest
2013 2014 2015 2016
100
300
950
1500+

6. Customer Success
is maturing

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

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

9. The model is not
Hunting

10. Customer Success is
Farming!

11. Young Sapling
Needs close care to take root

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

13. And Harvest

14. GrowingNew
z
In Renew/Upsell
Cancelled
SAVING
ACTIVITY

15. GrowingNew
The RECURRING nature of the lifecycle
determines the operatingmodel
z
In Renew/Upsell
Cancelled
SAVING
ACTIVITY

16. 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

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

18. 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

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

20. 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

22. FALLACIES
of CUSTOMER SUCCESS3

23. Customer Success is
NOT Customer Support
X
1

24. Customer Success
is NOT Project ManagementX 2

25. Customer Success is
Not Pipeline Management
X
3

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

27. Portfolio Management is
The Model for Customer
Success Management

28. Customer Portfolio
At Risk
In Harvest
Growing
New

29. 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 Model

30. 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

31. 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
--------------------
ActiveEscalations
METRICS
Time to Value
--------------------
Satisfaction
Results
--------------------
Adoption
--------------------
Utilization
The Portfolio Scorecard

32. FarmDon’t Hunt and Manage your Grove
Summary

33. FarmDon’t Hunt and Manage your Grove
Summary
Run CustomerSuccess like a Business

34. FarmDon’t Hunt and Manage your Grove
Summary
Portfolio Management is the OperatingMode
Run CustomerSuccess like a Business

35. We’ve got a huge future ahead!
Profitable Customer Success Model
THANK YOU! guy@totango.com