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How Customer Success is Revolutionizing Open Source Companies
Transcript of How Customer Success is Revolutionizing Open Source Companies
Child-like Joy
©2015 Gainsight. All Rights Reserved.
How Customer Success is Revolutionizing Open Source Companies
Child-like Joy
©2015 Gainsight. All Rights Reserved.
How to Win in Open Source with Customer Success Dhaval Moogimane
Partner, Waterstone Management Group
Objectives
•Why Customer Success is important for open source software companies
•How open source software companies can get started and maximize the value of Customer Success
Challenges for open source companies
Competition with Free & Proprietary
A.Convince “free” users to convert to paid open source support
B.Convert proprietary users to premium open source
C.Justify pricing at each renewal
1 Customer Value in Long Tail
A. Manage customers in the long tail via existing resources
B. Identify opportunities for cross-sell and upsell within existing base
3Heavy Reliance on Subscription
A. Deliver fast time to value
B. Focus on renewals
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These 3 factors drive challenges in customer retention, conversion, and upsell / cross-sell for open source companies
Why Customer Success is important for open source
1. Competition with free & proprietary
2. Heavy reliance on subscription
3. Customer value primarily in long tail
Open Source Challenges Customer Success OutcomesRelentless focus on Customer
Success and Experience to Drive ARR
Conversion to paid for premium offerings
Cross-sell
Upsell
Retention
• Improved retention rate attributable to CSM
• Qualified leads passed to sales (license, education, success, services, etc.)
• Direct signing on success, services, or education offerings
• Conversion to paid-for premium offerings
• Increased sales efficiency
• Improved sales retention
• Reduced support org costs
• Reduced CAC
Economic impact of Customer Success for open source
Illustrative CSM org profitability
B C DA
How to get started5 actions that open source companies should take when
establishing Customer Success capability
Make Customer Success an organizational priority
Align organization on CS and formalize review of customer health metrics
Charter a Customer Success team
Establish team to monitor customer usage and health, and drive net renewals
Find the right talent Identify CSMs that can engage with users during key point in lifecycle to gauge usage, assess risk, and prompt adoption
Understand your customer Gather product usage insight via available indicators
Exploit the long tail Invest in technology and design CS model with automation in mind
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Child-like Joy
©2015 Gainsight. All Rights Reserved.
How to Implement Customer Success at anOpen Source Organization
Andy KnospVice President of Services
Gainsight
5 Pillars of Customer Success
Demonstrate the value you deliver to your customers to promote adoption, advocacy,
and growth
DEMONSTRATE Value
5 Pillars of Customer Success
Build a consistent, effective customer journey through one-to-many
strategies and high-impact, timely one-on-one interactions
OPERATIONALIZE Customer Lifecycle
Build a customer-focused organization by improving cross-
functional coordination and measuring impact
ENABLE Cross-functional Visibility
Make it easy to spot and act on opportunities for growth and
candidates for advocacy
DRIVE Expansion & Advocacy
Proactively identify signs of customer risk and collaborate cross-functionally to address
issues
MANAGE Customer Risk
©2015 Gainsight. All Rights Reserved.
Business Challenges
1. We have accounts we can’t touch with manual outreach but need proactive attention
2. We are seeing customer satisfaction issues due to poor hand-offs from sales to CSM
3. We spend too much time preparing for Executive Business Reviews
4. CSMs have too many repetitive interactions with customers
5. It takes customer-facing team members too long to prepare for customer meetings
6. We need to increase the ratio of accounts a CSM can handle to make CSM more cost effective
OPERATIONALIZE Customer Lifecycle
MANAGE Customer Risk
DEMONSTRATEValue
DRIVEExpansion & Advocacy
ENABLECross-Functional
Visibility
5 Pillars of Customer Success
©2015 Gainsight. All Rights Reserved.
Business Challenges
1. We don’t know which accounts are at risk, and which we can impact or de-prioritize
2. We are seeing churn due to low adoption
3. We are seeing churn due to low-value adoption (e.g. not using new or advanced features)
4. We are seeing churn due to functionality gaps in the product
5. We are seeing churn due to product stability or quality issues
6. We are seeing churn due to poor customer satisfaction
7. We are seeing churn due to loss of our key customer champion
8. We are seeing churn due to customer service issues
5 Pillars of Customer SuccessOPERATIONALIZE
Customer LifecycleMANAGE
Customer RiskDEMONSTRATE
ValueDRIVE
Expansion & AdvocacyENABLE
Cross-Functional Visibility
©2015 Gainsight. All Rights Reserved.
Business Challenges
1. We don’t have a consistent way to track customers’ goals throughout their lifecycle
2. We don’t have a scalable way to show customers how they use our product/service
3. We are seeing churn due to customers not seeing ROI or business value
4. We need to give management visibility into CSM efforts and impact
5. We need a way to report on retention, upsell, and churn
6. We need a way to forecast retention, upsell, and churn
5 Pillars of Customer SuccessOPERATIONALIZE
Customer LifecycleMANAGE
Customer RiskDEMONSTRATE
ValueDRIVE
Expansion & AdvocacyENABLE
Cross-Functional Visibility
©2015 Gainsight. All Rights Reserved.
Business Challenges
1. We don’t know which customers to use as references and in marketing activities
2. We have no way to track our sponsors as they go to new companies in a scalable way
3. We don’t know which customers are trending toward needing more capacity
4. It’s too manual for us to spot customer overages
5. We don’t know which customers are good candidates for upsell
6. We don’t know how to turn happy customers into advocates
5 Pillars of Customer SuccessOPERATIONALIZE
Customer LifecycleMANAGE
Customer RiskDEMONSTRATE
ValueDRIVE
Expansion & AdvocacyENABLE
Cross-Functional Visibility
©2015 Gainsight. All Rights Reserved.
1. Our field reps and execs are sometimes blindsided by customer risks
2. Our sales reps and account managers are sometimes blindsided by customer risks during a sales cycle
3. We don’t have a consistent view of customer health across our company
4. We don’t know what’s driving risk and success in our customer base
5. We need a way to track customer relationships across complex customers, multiple products
Business Challenges
5 Pillars of Customer SuccessOPERATIONALIZE
Customer LifecycleMANAGE
Customer RiskDEMONSTRATE
ValueDRIVE
Expansion & AdvocacyENABLE
Cross-Functional Visibility
©2015 Gainsight. All Rights Reserved.
We don’t have a consistent way to track customers’ goals throughout their lifecycleWe don’t have a scalable way to show customers how they use our product/service
We are seeing churn due to customers not seeing ROI or business value
We need to give management visibility into CSM efforts and impact
We need a way to report on retention, upsell, and churn
We need a way to forecast retention, upsell, and churn
We don’t know which accounts are at risk, and which we can impact or de-prioritize`We are seeing churn due to low adoptionWe are seeing churn due to low-value adoption (e.g. not using new or advanced features)We are seeing churn due to functionality gaps in the productWe are seeing churn due to product stability or quality issues
We are seeing churn due to poor customer satisfaction
We are seeing churn due to loss of our key customer champion
We are seeing churn due to customer service issues
Our field reps and execs are sometimes blindsided by customer risks
Our sales reps and account managers are sometimes blindsided by customer risks during a sales cycle
We don’t have a consistent view of customer health across our company
We don’t know what’s driving risk and success in our customer base
We need a way to track customer relationships across complex customers, multiple products
We have accounts we can’t touch with manual outreach that need proactive attentionWe are seeing customer satisfaction issues due to poor hand-offs from sales to CSM
We spend too much time preparing for Executive Business Reviews
CSMs have too many repetitive interactions with customers
It takes customer-facing team members too long to prepare for customer meetings
We need to increase the ratio of accounts a CSM can handle to make CSM more cost effective
We don’t know which customers to use as references and in marketing activitiesWe have no way to track our sponsors as they go to new companies in a scalable wayWe don’t know which customers are trending toward needing more capacity
It’s too manual for us to spot customer overages
We don’t know which customers are good candidates for upsellWe don’t know how to turn happy customers into advocates
Identifying Key Business ChallengesOPERATIONALIZE
Customer LifecycleMANAGE
Customer RiskDRIVE
Expansion & Advocacy
ENABLE Cross-Functional
VisibilityDEMONSTRATE
Value
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©2015 Gainsight. All Rights Reserved.
We don’t have a consistent way to track customers’ goals throughout their lifecycleWe don’t have a scalable way to show customers how they use our product/service
We are seeing churn due to customers not seeing ROI or business value
We need to give management visibility into CSM efforts and impact
We need a way to report on retention, upsell, and churn
We need a way to forecast retention, upsell, and churn
We don’t know which accounts are at risk, and which we can impact or de-prioritize`We are seeing churn due to low adoptionWe are seeing churn due to low-value adoption (e.g. not using new or advanced features)We are seeing churn due to functionality gaps in the productWe are seeing churn due to product stability or quality issues
We are seeing churn due to poor customer satisfaction
We are seeing churn due to loss of our key customer champion
We are seeing churn due to customer service issues
Our field reps and execs are sometimes blindsided by customer risks
Our sales reps and account managers are sometimes blindsided by customer risks during a sales cycle
We don’t have a consistent view of customer health across our company
We don’t know what’s driving risk and success in our customer base
We need a way to track customer relationships across complex customers, multiple products
We have accounts we can’t touch with manual outreach but need proactive attentionWe are seeing customer satisfaction issues due to poor hand-offs from sales to CSM
We spend too much time preparing for Executive Business Reviews
CSMs have too many repetitive interactions with customers
It takes customer-facing team members too long to prepare for customer meetings
We need to increase the ratio of accounts a CSM can handle to make CSM more cost effective
We don’t know which customers to use as references and in marketing activities
We have no way to track our sponsors as they go to new companies in a scalable way
We don’t know which customers are trending toward needing more capacity
It’s too manual for us to spot customer overages
We don’t know how to turn happy customers into advocates
Identifying Key Business ChallengesOPERATIONALIZE
Customer LifecycleMANAGE
Customer RiskDRIVE
Expansion & Advocacy
ENABLE Cross-functional
VisibilityDEMONSTRATE
Value
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A B C D E
©2015 Gainsight. All Rights Reserved.
GAINSIGHT APPROACH TO IMPLEMENTATION
High velocity onboarding focused on enabling your team to take full ownership of Gainsight
Structured& Prescriptive Enabling your team Based on learning from
150+ implementations
©2015 Gainsight. All Rights Reserved.
GAINSIGHT SUCCESS EXPRESS IMPLEMENTATION
Success Express WorkshopSteps 1-6 in 3.5 days
Customers & Sponsor Tracking1
Lifecycle Cockpit2Configuration Only – Usage and Scorecard3
Start CoPilot
Lifecycle Reporting
4
5
NPS Surveys
Customer 360 + Engagement Data
Health Scorecard
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7
8
Engagement Analytics
Expand CoPilot
Triggered Engagement Rules
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10
11
5 weeks for steps after Workshop
PRE
WOR
K
Engagement DataIntegrate your other key data points, e.g. Product Usage
~ 14 days
Rol
lout
1
Rol
lout
2
Operationalize Customer Lifecycle Enable Cross-functional Visibility
Demonstrate Value
Drive Expansion and AdvocacyManage Customer Risk
©2015 Gainsight. All Rights Reserved.
GAINSIGHT COMMUNITY RESOURCES
ArticlesGainsight Go contains numerous constantly-
updated articles that can help answer any questions you have about Gainsight’s
features
VideosYou can also watch many step-by-step videos that
guide you through complex Gainsight features and can help you train your team
Best PracticesGainsight Go is filled with
best practices we’ve developed over the years
so you can make sure you’re getting the most out
of Gainsight
Gainsight Go
Advice from the GroupGet advice and input from
the community on Gainsight as well as
customer success in your org
AnnouncementsStay up-to date with GS
announcements on products, training webinars
and more
IdeasContribute ideas to improve
Gainsight and see what others have contributed
Community
Express Office HoursOnce a week Gainsight will hold ‘open’ office hours for Express Customers to ask
question or seek help
General WebinarsGainsight does frequent
webinars on different success processes as well
as product training available to all customers
Training Webinars
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©2015 Gainsight. All Rights Reserved.
How Implements Customer Success Jennifer Dearman
Director of Strategic Customer Engagement
#1
90%MORE THAN
FORTUNE
500of the
use
PRODUCTS & SOLUTIONS. *
REDHAT
* Red Hat client data, 2014
85WORLDWIDE
OFFICES
35COUNTRIES
SOLUTIONSAWARD-WINNING
500S&P
COMPANY
RHTNYSE:
~7,500EMPLOYEES
OPENSOURCELEADER
The world's leading developer and supplier of open source software for enterprise IT
Open Source to the Enterprise
REDHAT JBOSSMIDDLEWARE
REDHATSTORAGE
REDHATENTERPRISE LINUX
REDHAT ENTERPRISE LINUXOPENSTACK PLATFORM
REDHATENTERPRISEVIRTUALIZATION
REDHATSATELLITE
REDHATCLOUDFORMS
1M+projects*
* www.blackducksoftware.com/oss-logistics/choose
REDHAT ENTERPRISE LINUXATOMIC HOSTREDHAT MOBILE
Red Hat Subscription Model
MULTI-LINGUAL
24 HOURS / 7 DAYS A WEEK
UNLIMITED INCIDENTS
MULTI-CHANNEL
MULTI-VENDOR CASE OWNERSHIP
CUSTOMER PORTAL & FORUMS
KNOWLEDGEBASEHARDWARE CERTIFICATION
SOFTWARECERTIFICATION
TRAINING CURRICULA (OPTIONAL)
STABILITY WITH A PRODUCT LIFE CYCLEOF UP TO 10 YEARS
SOFTWARE ASSURANCE
SECURITY RESPONSETEAM
UPDATES
PATCHES
UPGRADES
CLOUD PROVIDERCERTIFICATION
COMMITMENTS
ACCESS LABS
EXPERTISE
ONGOING DELIVERY
TECHNICAL SUPPORT
AWARD-WINNING SUPPORT
YEARS AWARDED:
20112012
20132014
2015
It’s a disciplined approach of having:
The right customer engagement strategy
Eas
e of
acq
uisi
tion
& e
xit
Subscription economy
http://blogs.forrester.com/kate_leggett/14-05-15-what_is_customer_success_management_and_why_is_it_importanthttps://hbr.org/resources/pdfs/tools/SAS_Report_April2014_webview.pdf
Empowering customer success managers with customer, financial, feedback and other data so that they can have the right conversations with their customers”
5500
Customers must realize the
economic value of their investments
“For companies providing products and services via
subscription, actively managing customer relationships to ensure
their satisfaction and ongoing patronage becomes a critical step
in preserving their revenue stream.”
Defining and following standardized engagement processes & experience design
Hiring the right profile and operationally managing the team
Open jobs for
Customer Success Managers
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2
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4
“Customer success management is not about technology, or about account management.”
ROI of active relationship management
Churn Retention, Adoption, Growth
Customers Have Choices
Our Journey to Customer Success
• Case management
• Break fix support
• Technical Account Managers
• Support Relationship Managers
• Voice of Customer
• Value of subscription
• Customer success tied to business outcomes and value
• Scalable engagement
• Focus on customer journey
• Continuous and prescriptive engagement
REACTIVE PROACTIVE ENGAGEMENT+
Designed to accelerate the path to achieving
targeted business outcomes by maximizing the
value of your Red Hat subscription.
Through continuous engagement and timely
delivery of tailored resources, content, and tools,
Red Hat Customer Success elevates our
partnership to help you achieve your business
goals.
Customer Success
Onboarding your team to help them realize the
most value of your technology investments
CUSTOMER
Supporting product adoption by
providing timely & relevant resources and tools
Serving as a named resource and advocate
within Red Hat
Driving desired business outcomes through
continuous engagement
Customer Success Goals
Proactively engage 100% of customers with continuous
and relevant content
Increase product adoption and deliver
greater business value
Predict and protect subscription renewals and drive growth and advocacy
Success planning
Quarterly business reviews
Customer Dashboard
DECISION MAKER
Product Roadmap Session(s)
Health monitoring & monthly Touchpoints
Targeted Nurture Campaigns for adoption
KEY INFLUENCER END USER
Product Getting Started (Portal)
Targeted Nurture Campaigns around product/feature adoption & best practices (labs, portal content, security, etc)
Understanding CustomersDEMONSTRATING VALUE DELIVERING VALUE
Aligning IT initiatives with business goals
Doing more with less
Ensuring solutions operate to compliance standards and are interoperable
Key
C
halle
nges
Enga
gem
ent
Tact
ics
Implementing practical solutions that solve seriousbusiness problems
Improving efficiency, flexibility, and scalability
Avoiding redundancies
Rapidly deploying new technologies with existingexperience
Completing tasks not enabled by the current UI
Spending less time automating tasks and more timepreventing disruption
Facing a recurring problem that could be fixed with analternative, unapproved solution
Customer Success Approach
RHT CSM
RHT Digital
Premium+
Premium
StandardMarketing Managers
CUSTOMER BASE ENGAGEMENT
1:Many CSM to account ratio
1:Few CSM to account ratio
AUTO
MAT
ED
PER
SON
ALIZ
ED
EXPE
RIE
NC
E
RHT Digital
RHTSales
Enga
gem
ent D
esig
n &
Cam
paig
n M
arke
ting
RHT TAM
RHTSales
RHT CSM RHT Digital
Transform customer
success processes
Predict and track
customer health
Touch customers at scale
Why Gainsight?
New Resources Customer Success Roles Playbooks & Scalable Engagement Customer Lifecycle
Management tool
HIGH TOUCH
STANDARD TOUCH
TECH TOUCH
Customer Summary
Summary of customer health across critical metrics with the ability to view over time to see exactly why overall scores changed
Snapshot of Customer Portfolio Health
View customer portfolios to look for trends in health attributes
Executive Reporting
Executive dashboards to track productivity of customer success managers by engagement models
Child-like Joy
Jennifer DearmanDirector of Strategic Customer [email protected]
Dhaval MoogimanePartnerWaterstone Management [email protected]
Andrew KnospVice President of [email protected]
Questions?