Customer Success E-Book

Nick Mehta

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 386

Veröffentlichungsjahr: 2016

Beschreibung

Your business success is now forever linked to the success of your customers Customer Success is the groundbreaking guide to the exciting new model of customer management. Business relationships are fundamentally changing. In the world B.C. (Before Cloud), companies could focus totally on sales and marketing because customers were often 'stuck' after purchasing. Therefore, all of the 'post-sale' experience was a cost center in most companies. In the world A.B. (After Benioff), with granular per-year, per-month or per-use pricing models, cloud deployments and many competitive options, customers now have the power. As such, B2B vendors must deliver success for their clients to achieve success for their own businesses. Customer success teams are being created in companies to quarterback the customer lifecycle and drive adoption, renewals, up-sell and advocacy. The Customer Success philosophy is invading the boardroom and impacting the way CEOs think about their business. Today, Customer Success is the hottest B2B movement since the advent of the subscription business model, and this book is the one-of-a-kind guide that shows you how to make it work in your company. From the initial planning stages through execution, you'll have expert guidance to help you: * Understand the context that led to the start of the Customer Success movement * Build a Customer Success strategy proven by the most competitive companies in the world * Implement an action plan for structuring the Customer Success organization, tiering your customers, and developing the right cross-functional playbooks Customers want products that help them achieve their own business outcomes. By enabling your customers to realize value in your products, you're protecting recurring revenue and creating a customer for life. Customer Success shows you how to kick start your customer-centric revolution, and make it stick for the long term.

Leseprobe

Table of Contents

Endorsements

Title Page

Copyright

Gainsight Book Foreword

Part I: Customer Success: The History, Organization, and Imperative

Chapter 1: The Recurring Revenue Tsunami: Why Customer Success Is Suddenly Crucial

In the Beginning

Attitudinal versus Behavioral Loyalty

The Birth of Software as a Service

Chapter 2: The Customer Success Strategy: The New Organization versus the Traditional Business Model

Why Does Customer Success Matter?

What Customer Success Is

Not

Customer Success Is NOT Customer Support

What Customer Success Is

Customer Success's Cross-Functional Impact

Chapter 3: Customer Success for Traditional Nonrecurring Revenue Businesses

Are Subscriptions Only for Software and Magazines?

Delivering Customer Success

Part II: The Ten Laws of Customer Success

Chapter 4: The Practice of Customer Success

Chapter 5: Law 1: Sell to the Right Customer

How Do You Define the Right Customer?

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 6: Law 2: The Natural Tendency for Customers and Vendors Is to Drift Apart

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 7: Law 3: Customers Expect You to Make Them Wildly Successful

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 8: Law 4: Relentlessly Monitor and Manage Customer Health

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 9: Law 5: You Can No Longer Build Loyalty through Personal Relationships

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 10: Law 6: Product Is Your Only Scalable Differentiator

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 11: Law 7: Obsessively Improve Time-to-Value

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 12: Law 8: Deeply Understand Your Customer Metrics

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 13: Law 9: Drive Customer Success through Hard Metrics

Additional Commentary

High Touch

Low Touch

Tech Touch

Chapter 14: Law 10: It's a Top-Down, Company-Wide Commitment

Additional Commentary

High Touch, Low Touch, and Tech Touch

Part III: Chief Customer Officer, Technology, and Future

Chapter 15: The Rise of the Chief Customer Officer

The

Before Cloud

Chief Customer Officer

The New Chief Customer Officer

Chapter 16: Customer Success Technology

A Plethora of Customer Information

Optimize Customer Success Management Time

Increase the Intelligence of Every Customer Touch

Drive Scalability

Improve Collaboration, Communication, and Visibility

Better Team Management

Chapter 17: Where Do We Go from Here?

The Customer Economy

Ideal

Customer Success Today

Starbucks and Customer Success

Index

End User License Agreement

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Guide

Table of Contents

Begin Reading

List of Illustrations

Chapter 1: The Recurring Revenue Tsunami: Why Customer Success Is Suddenly Crucial

Figure 1.1 No Software Logo

Chapter 2: The Customer Success Strategy: The New Organization versus the Traditional Business Model

Figure 2.1 High-Level Organizational Chart

Figure 2.2 Expanded High-Level Organizational Chart

Figure 2.3 Organizing around Customer Success as a Philosophy

Figure 2.4 Installed Base versus New Customer Bookings

Chapter 3: Customer Success for Traditional Nonrecurring Revenue Businesses

Figure 3.1 Hierarchy of Customer Value

Chapter 7: Law 3: Customers Expect You to Make Them Wildly Successful

Figure 7.1 Delayed Value Scenario

Figure 7.2 Improved Value Scenario

Chapter 10: Law 6: Product Is Your Only Scalable Differentiator

Figure 10.1 Driving Community, Engagement, and Feedback Loops

Figure 10.2 You Can't Manage What You Don't Measure

Figure 10.3 Why Product Advisory Councils

Figure 10.4 Business Value

Figure 10.5 Customer Success Framework

Chapter 11: Law 7: Obsessively Improve Time-to-Value

Figure 11.1 Time-to-Value Process

Figure 11.2 Iterative Implementation Example

Chapter 12: Law 8: Deeply Understand Your Customer Metrics

Figure 12.1 Defining CMRR

Figure 12.2 Operation-Level Dashboard

Figure 12.3 Executive Metrics Dashboard

Chapter 15: The Rise of the Chief Customer Officer

Figure 15.1 The Old Post-Sales Organization

Figure 15.2 The New Post-Sales Organization

Figure 15.3 Quota Comparison—Sales versus CCO (Moderate to High-Growth Recurring Revenue Business)

Figure 15.4 The Future Chief Customer Officer Organization?

List of Tables

Chapter 1: The Recurring Revenue Tsunami: Why Customer Success Is Suddenly Crucial

Table 1.1 Consuming Music Before and After the Cloud

Table 1.2 Consuming Software Before and After the Cloud

Endorsements

Jim Steele

Having been at Salesforce to witness the birth of Customer Success, I'm excited to see a book focused on this subject around which I have so much personal passion. One of the foundations of our success at Salesforce was Customer Success so it's particularly great to see the history of the discipline, along with a glimpse at the future, documented in this book. I recommend it to every CEO or leader out there who is truly seeking to build a customer success-centric company.

—Jim Steele, President & Chief Customer Officer, Insidesales and former President & Chief Customer Officer, Salesforce (12 1/2 years)

Roger Lee

As one of the early investors in the technology of Customer Success, I'm particularly pleased to see the rapidly accelerating growth of the entire industry. The “subscription tsunami” as outlined in the book has profoundly disrupted the software world, and forced a focus on customers that did not exist previously. This book will help those who need to understand how this brave new world works, and also people looking for some practical guidance on how to execute successfully in the subscription economy. The team at Gainsight helped pioneer the Customer Success movement and definitely has the chops put together this hitchhiker's guide for those traveling the same road.

—Roger Lee, General Partner, Battery Ventures

Tien Tzuo(CEO, Zuora)

The world is moving to a Subscription Economy, and this book directly addresses that shift. Smart companies aren't trying to pitch products to strangers anymore. They're figuring out how to grow, monetize and build an ongoing, mutually beneficial relationship with a dedicated base of subscribers. Customer Success is fundamental to this process, and this book documents three core aspects—philosophy, discipline, and organization—in a sharp, practical way.

—Tien Tzuo, CEO and Founder, Zuora

Byron Deeter

At Bessemer Venture Partners, we've invested in over 100 cloud companies and have been fortunate to work with industry leaders including LinkedIn, Twilio, Pinterest, Yelp, Shopify, and Box. One recurring theme for every successful subscription-based company I've seen is a relentless focus on Customer Success. Not lip service, but true focus and passion. That's one reason I'm thrilled to finally see a book on the subject which explains not only why this is important but includes practical guidance on how to do it. I'm also really excited that it goes beyond the cloud to explore why Customer Success is critical to traditional companies and B2C companies, too. The folks at Gainsight really nailed it, and I strongly recommend this book for any executive running a high-performance organization. Understanding Customer Success leads to company success.

—Byron Deeter, Partner, Bessemer Venture Partners

Mary Trick

At Infor, the majority of our business is enterprise software so I was particularly pleased to find that this book does not align Customer Success only with cloud companies or only with edge applications, but explains why it's so critical to all software businesses. The customer economy that we're living in demands a new focus on customers no matter what kind of business you are in, and the team at Gainsight understands this well. Dan's book pulls together significant insights that will benefit all of us.

—Mary Trick, Chief Customer Officer, Infor

Mary Poppen

Customer Success is now a common business term, but this wasn't so just a few years ago. The evolution has been dramatic over the past 10 years. I've experienced this exciting evolution firsthand from what was initially a smaller SaaS company (SuccessFactors) to what it has grown to become within a large, enterprise software company (SAP). Customer Success grows in importance every day as companies recognize that the foundation of continued success and growth is built upon a satisfied and renewing customer base. While the evolution continues, the core themes that make it important have remained the same and Dan, Nick, and Lincoln captured those elements perfectly in this book. I was especially pleased to see that it went beyond a philosophical conversation about Customer Success to delve into the nitty-gritty of the practical, day-to-day driving principles every CEO and leader needs to understand. Those of us driving the importance and evolution of Customer Success will benefit personally if all of our executives and board members understand and support it, too.

—Mary Poppen, Chief Customer Officer, SAP SuccessFactors

Clara Shih

Every business in the world needs to be thinking about Customer Success. No surprise it has help set companies like Salesforce apart, as I saw it play out firsthand. At Hearsay, our first hire was in Customer Success. It is the investment that keeps on giving. Congratulations to Nick and team for putting their stamp on the industry and creating this extremely valuable guide that will transform your organization.

—Clara Shih, Founder and CEO, Hearsay Social

CUSTOMER SUCCESS

How Innovative Companies Are Reducing Churn and Growing Recurring Revenue

Nick Mehta, Dan Steinman,and Lincoln Murphy

This book is printed on acid-free paper.

Copyright © 2016 by Gainsight. All rights reserved

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 50-8400, fax [phone], or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for damages arising herefrom.

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Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data:

Names: Mehta, Nick, 1977- author. | Steinman, Dan, 1958- author.

Title: Customer success : how innovative companies are reducing churn and growing recurring revenue / Nick Mehta, Dan Steinman.

Description: Hoboken : Wiley, 2016. | Includes index.

Identifiers: LCCN 2015040939 (print) | LCCN 2015051466 (ebook) | ISBN 9781119167969 (hardback : alk. paper) | ISBN 9781119168294 (pdf) | ISBN 9781119168300 (epub)

Subjects: LCSH: Customer relations. | Customer services. | Success in business. | BISAC: BUSINESS & ECONOMICS / Customer Relations.

Classification: LCC HF5415.5 .M4344 2016 (print) | LCC HF5415.5 (ebook) | DDC 658.8/12—dc23

LC record available at http://lccn.loc.gov/2015040939

Cover image: Tom Merton/Getty Images, Inc.

Cover design: Wiley

Gainsight Book Foreword

The term Customer Success has become a buzzword in today's business world. Customers all expect it, and vendors all aim to deliver it. But who decides when it's been achieved? If you are truly a customer-centric company, the answer to that—and all other questions—should come easily: The customer ultimately decides.