CCSM- 101

M A STERING CUSTOM ER
SUCCESS KEY CONCEPTS
Workb ook
LEA RNING
GOA LS
Sum m a rize the m a c ro

1 m a rket c ha ng es tha t
d rove the evolution of the
Custom er Suc c ess role.

Id entify the five ha llm a rks

2 c ritic a l to a
c om p rehensive Custom er
Suc c ess stra teg y.

Artic ula te why Custom er

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Suc c ess should b e
c onsid ered a c ore
c om p a ny op era ting
p hilosop hy.

Dem onstra te a n

4 und ersta nd ing of c om m on

Custom er Suc c ess
term inolog y.

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TA BLE OF
CONTENTS
TOPIC PAGE
HOW DID IT ALL START? 4

THE AGE OF SUBSCRIBERS 5

THE SUBSCRIPTION ECONOMY 6

CHURN 7

5 HALLMARKS OF CUSTOMER SUCCESS 8

MAKING SUCCESS HAPPEN 9

KEY CONCEPTS & TERMINOLOGY 10

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 HOW DID
IT A LL STA RT?
Th e Big Ch a n g e: From Prod u c t t o Serv ic e
THE PRODUCT ERA THE SERVICE ERA
- Dem a nd exc eed s Sup p ly - Sup p ly exc eed s Dem a nd
- Foc us on the sup p ly c ha in - Foc us on the c ustom er
- Six sig m a - User exp erienc e d esig n
- Internet c ha ng es everything - Cloud + Mob ile c ha ng es everything
- System s of Rec ord - System s of Eng a g em ent
- SAP, Ora c le, Cisc o, Mic rosoft, - Sa lesforc e, Am a zon, Ap p le,
Intel Mic rosoft
- B2B ena b les B2C - B2C ena b les B2B
- Custom er Sup p ort - Custom er Suc c ess

Sh ift t o a s- a - serv ic e m od el a ffec t in g ev ery en t erp rise

Cred it: Geoffry Moore

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 THE A GE OF
THE SUBSCRIBER
Tod a y, everything from soc ks to c a rs to softwa re is a va ila b le
a s a servic e. New a nd existing c om p a nies a re a d op ting
sub sc rip tion- b a sed revenue m od els in resp onse to c ha ng ing
c ustom er exp ec ta tions.

We're no long er in The Ag e of the Custom er. We ha ve entered

the next a g e - The Ag e of the Sub sc rib er - a nd the d efining
them e of the new a g e is und ersta nd ing b usiness outc om es
a nd d elivering rec urring va lue.

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 THE SUBSCRIPTION
ECONOM Y
Th e Fin a n c ia l Risk Ha s Sh ift ed

Credit: Totango

Sim p le Sa a S Ec on om ic s Exa m p le

Let's a ssum e it c osts $18 to a c q uire a new c ustom er

( CAC - Cost of Ac q uisition) . And you m a ke $1 in revenue/ m onth
from tha t c ustom er. You won?t rec oup CAC ( b rea k- even) until
m onth 18.
So if tha t c ustom er lea ves a fter 12 m onths, you would inc ur a
d irec t fina nc ia l loss of $6.
In a d d ition, you would ha ve a n unha p p y ex- c ustom er telling
others a b out their exp erienc e - whic h would , in turn, d rive future
CAC hig her, p erp etua ting the p rob lem .
This is not susta ina b le.

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 CHURN
In the sp ring of 2005, Ma rc Benioff, CEO of
Sa lesforc e, wa s on top of the world . Sa lesforc e
wa s on a roll.
After a whirlwind , five- yea r run up to a suc c essful
IPO the future looked b rig ht.
Sa lesforc e ha d nea rly 20,000 c ustom ers. The
rec ent num b ers showed a n 88% inc rea se in
b ooking s. They were on a tra jec tory for hyp er
g rowth. Thing s were g ood .
They ha d a g rea t p rod uc t. The p rob lem wa s tha t it wa s rela tively
exp ensive a nd still viewed a s a nic e- to- ha ve b y c ustom ers.
Da vid Dem p sey wa s in c ha rg e of renewa ls in Sa lesforc e's Europ ea n
b usiness. Wha t Dem p sey sha red in his p resenta tion to the lea d ership
tea m , on tha t fa teful d a y, wa s tha t Sa lesforc e wa s losing c ustom ers
a t a ra te of 8% - p er m onth!
The ra te of new c ustom er a c q uisition ha d b een m a sking a
fund a m enta l wea kness in the Sa lesforc e b usiness m od el - over the
c ourse of a yea r, nea rly every c ustom er wa s lea ving .
Sa lesforc e's b usiness resp onse to this situa tion wa s to la y the
found a tions for wha t b ec a m e known a s Custom er Suc c ess.

Ch u rn d est roy s su b sc rip t ion b u sin esses.

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 5 HA LLM A RKS OF
CUSTOM ER SUCCESS
Desc rib e why ea c h of the ha llm a rks a re im p orta nt.
1. Foc u s on c u st om er en g a g em en t .

2. Crea t e org a n iza t ion a lig n m en t t o d eliv er c u st om er

ou t c om es.

3. Dev elop a c om m on la n g u a g e.

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 5 HA LLM A RKS OF
CUSTOM ER SUCCESS
4 . Lea rn from c h u rn .

5. Crea t e a n ea rly w a rn in g sy st em .

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 M A KING
SUCCESS HA PPEN
"Su c c ess is n ev er ow n ed , it is
ren t ed , a n d t h e ren t is d u e
ev ery d a y ."
- Rory Va d en, Author of New York Tim es
Best Seller, Ta ke the Sta irs

1. Custom ers a re now b uying outc om es.

2. Custom er Suc c ess is help ing your c ustom ers to a c hieve their
d efinition of suc c ess throug h the use of your p rod uc t or servic e.
3. Custom er Suc c ess = Outc om es + Exp erienc e.
4. It?s a tea m effort.
5. Suc c ess m ust b e p a rt of the Org a niza tiona l DNA.

1 Set t h e rig h t
exp ec t a t ion s 2 Deliv er
v a lu e 3 Dem on st ra t e
v a lu e

Su c c essfu l c u st om ers w ill:

- Sta y with you for long er.
- Sp end m ore m oney with you over tim e.
- Tell others a b o ut you.

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 KEY
CONCEPTS
In your own word s, d esc rib e ea c h key c onc ep t.
Id ea l Cu st om er Profile

Cu st om er Jou rn ey

Su c c ess Pla n

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 KEY
CONCEPTS
En g a g em en t Mod el

Exec u t iv e Bu sin ess Rev iew

Pla y s a n d Pla y b ook s

Risk Ma n a g em en t

Voic e of t h e Cu st om er

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