Customer Success Summit 2016 General Session Presented by: Peter Armaly, VP of Research, Customer Success, TSIA

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Shifting to an Outcome-­focused world
Peter Armaly
Vice President of Research, Customer Success

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What’s an Outcome?
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A product
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An experience
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A train… or… a better-­functioning city
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Food… or… national security
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Customers care about having a
good experience with the vendor
but they care more about achieving
their expected Outcomes
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Share price rises, increase in valuation, program delivered
on time, health improves, life is more fun, etc
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A multitude of other business and personal goals
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Customers reward companies
with loyalty when their
Outcomes are achieved
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Otherwise, they punish them
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TSIA Technology and Services 50 -­ 2016

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Market Forces in Play
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Profitable
Legacy Model
XaaS 2.0
Commoditized
Legacy Model
XaaS 1.0
OEM Scenarios
Demand for New Consumption Models
Profitability of
Core Offering

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State of The Industry
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10% 10%
60% 20%
OEM Scenarios
Demand for New Consumption Models
Profitability of
Core Offering

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Year over year persistently high Churn rates
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So why aren’t CSMs spending more time on driving Adoption activities
which, in turn, drive platform stickiness and higher rates of loyalty?
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Many companies can monitor their customers’ solution
consumption
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But only a minority systematically use the data
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To move, you need to figure out what customers
value and deliver that before you can gain
trust and establish credibility
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19. You need Customer Success to drive this
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20. Unique Traits of Customer Success
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• Close
proximity
to
customers
• Responsible
for
driving
adoption
and
ensuring
customers
stay
on
the
platform
• Are
proactive
and
curious
• Are
process
and
data-­‐driven
• Consider
the
customer
holistically
• Are
good
herders
• Desire
to
help
the
customer
grow
in
capability
and
ability
to
accomplish
more

21. CSM
Activities
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Hard
to
reconcile.
Only
25%
of
respondents
employ
predictive
analytics
capabilities
So
few
yet
this
is
a
foundational
element
of
profiling
and
of
Outcome
Engineering

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What next?
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The need to focus
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1.0
Organizational
Strategy
and
Financial
Performance
1.1
Strategy
and
Goals
1.2
Business
Performance
Management
2.0
Opportunity
Management
2.1
Account
Segmentation
2.2
Opportunity
Management:
Renew
2.3
Opportunity
Management:
Expand
3.0
Customer
Success
Delivery
3.1
Customer
Onboarding
3.2
Value
and
Visioning
3.3
Enablement
3.4
Adoption
Monitoring
3.5
Opportunity
Identification
4.0
Success
Operations
4.1
Resource
Management
4.2
Talent
Management
4.3
Customer
Analytics
4.4
Contract
Analytics
4.5
Infrastructure
5.0
Success
Engineering
5.1
Success
Engineering
Function
5.2
Product
Portfolio
Alignment
5.3
Solution
Development
5.4
Intellectual
Asset
Management
5.5
Value
Engineering
5.6
Product
Integration
6.0
Success
Marketing
6.1
Success
Marketing
Function
6.2
Strategic
Pricing
6.3
Services
Rollout
6.4
Customer
Experience

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Okay, so how do we drive Outcomes?
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25. Value
realization
journey
mapping
Listen
to
your
customers
Build
profiles
of
customers
based
on
the
now
and
to-­‐be
stages
Determine
what’s
systematically
required
to
move
them
to
that
next
stage

26. The
Value
Realization
Journey
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Stage
1 Stage
2 Stage
3 Stage
4
Value
realized
by
the
customer
TSIA
– Outcome
Engineering
2015

27. HOW
is
Outcome
Engineering
Done
at
Scale?
Right
Framework
Right
Outcomes
Right
Tools
Right
Customer

28. What
is
the
target
outcome?
What
capabilities
are
required
to
achieve
the
outcome?
What
is
the
financial
impact?
What
are
the
KPIs
that
predict
financial
impact
will
occur?
What
technology
improves
the
KPIs?
What
practices
are
required
to
leverage
the
technology?
What
roles
required
to
run
the
technology
and
practices?

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Things to remember
• Outcomes depend on perspective
• Pressure on to precisely understand the customer and to
deliver those outcomes, at scale
• Customer Success is best positioned to drive this but
they need to begin to focus
• A structure and methodology is required to make it
happen
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