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The Anti-Churn Program
© ChurnSquad 2014www.churnsquad.com
Background
Source: Customer Decision Journey (McKinsey)
The Funnel is dead – long
live the Customer Decision
Journey
The subscription
economy is increasing
the future value of
customers Source: Guy Nirpaz, CEO of Totango
© ChurnSquad 2014www.churnsquad.com
Early-growth companies focus on new
customer acquisition, not churn
Source: David Skok “Manage Customer Success to Reduce Churn”
© ChurnSquad 2014www.churnsquad.com
The Path to Negative Churn
Customer
Churn
Revenue
Churn
Revenue
Expansion
Negative
Churn
Do we measure it?
Do we understand it?
All customers are not
equal
− 1.7% monthly
− 2.1% monthly
+ 1.0% monthly
Upsell and cross-sell at
work
Expansion > churn?
You have negative churn
= − 1.1% monthly
at $50M rev- $6.2MAnnual revenue lost:
© ChurnSquad 2014www.churnsquad.com
Why? Customer-facing organizations are
focused on different objectives
Sales
•Early focus on
hunting
•Focus on
farming comes
later
Marketing
•Lead
Generation
•Product
Marketing
•Communication
•Ambassador
Programs
•Customer
Communities
•Customer Com Services
•Service Sales
•Profitable
Project Delivery
•Long-term
customer
success
Support
•Customer
satisfaction
•Efficiency
•Adoption
•Cross-selling
•Upselling
•References
+
-
Focus on New Customer Acquisition Focus on Customer Success
+
-
+
-
+
-
© ChurnSquad 2014www.churnsquad.com
The Solution: Early Focus on Customer
Revenue and Churn
0
20
40
60
80
100
120
140
160
Year 3 Year 4 Year 5 Year 6 Year 7
Annual Recurring Revenue
Without focus on Negative Churn With Focus on Negative Churn
$42M
$20M
$4M
$9M
Assumptions: 100% new customer growth, revenue churn 15% vs -10%
Just like early retirement
savings, the compounded
effect of customer revenue
traction is spectacular
© ChurnSquad 2014www.churnsquad.com
Assess
customer
revenue
process
Create anti-
churn plan
Execute or
coach plan
execution
Deliver or
coach metrics
and analysis
Conduct
reviews and
transfer
knowledge to
in-house team
Our Approach
© ChurnSquad 2014www.churnsquad.com
Anti-Churn Workshop℠
Getting Started
 A strategic exploration of how to measure and
manage the churn rate and maximize revenue
expansion
 How negative churn saps the growth rate
 Why revenue expansion is key to success in
subscription and renewal-dependent environments
 Measuring churn and revenue retention
 Methods to increase customer engagement
 How Marketing and Support can work together to
drive customer success
 1-day engagement (interviews and group session)
 2-page action summary
© ChurnSquad 2014www.churnsquad.com
Anti-Churn Blueprint℠
Assess and Plan
 Comprehensive plan to manage, monitor,
reverse churn rate, and maximize revenue
expansion
 Action plan covers
 Monitoring churn and customer revenue
 Improving customer messaging
 Increasing customer engagement
 Services driving customer success
 Organization and processes
 Can include Support & Services, Marketing
& Sales
 3-7 week engagement
© ChurnSquad 2014www.churnsquad.com
Anti-Churn Cure℠
Execution of the Blueprint
 Implementation service for the blueprint
 Flexible approach
 Full management
 Blended execution
 Flexible scope
 Internal process and organizational changes
 Tracking of customer and revenue churn
 Customer engagement programs
 Ambassador programs to drive word-of-mouth and
success stories
 Upsell and cross sell offers and marketing
 services marketing
 6-12 week engagement
© ChurnSquad 2014www.churnsquad.com
Anti-Churn Metrics℠
Analyze, Understand & Monitor
 Design and implementation of a turnkey
analytics solution to monitor churn, identify
patterns, and perform root cause analysis
 Flexible deployment
 Turnkey with insight delivered monthly or quarterly
 In-house with coaching and training
 Flexible scope
 Data mining
 Integration of heterogeneous data sources
 Statistical analysis
 Cohort analysis
 Data visualization
 6-12 week engagement to set up
© ChurnSquad 2014www.churnsquad.com
Case Studies
 For a medical communication technology client
 Implemented a formal customer success program to maximize adoption,
hence add-on purchases
 For a SaaS vendor
 Turned renewal process into a segmented program focused on relationship
and upsell/conversion and implemented collaboratively with marketing,
customer service and sales
 Defined and implemented churn, conversion and revenue retention and
expansion metrics into weekly and monthly dashboards
 For a large networking vendor
 Trained the customer success managers to develop strategic plans to work
with their accounts
 For a web-based marketing services vendor
 Assessed services portfolio and pricing against customer buying journey and
mapped target markets and channels based on revenue retention and
expansion opportunities
© ChurnSquad 2014www.churnsquad.com
The Path to Anti Churn
Customer
Churn
Revenue
Churn
Revenue
Expansion
Negative
Churn
Do we measure it?
Do we understand it?
All customers are not
equal
Upsell and cross-sell at
work
Expansion > churn?
You have negative churn
− 1.2% monthly
− 1.5% monthly
+ 2.1% monthly
= + 0.6% monthly
at $50M rev+ $3.5MAnnual revenue gain:
© ChurnSquad 2014www.churnsquad.com
This anti-churn self-assessment
quiz will take about 15 minutes
and help you identify areas of
improvements in terms of
measurements, processes and
organizations.
www.churnsquad.com/anti-churn-score-card
Benchmark your Organization!
Request the Guide
© ChurnSquad 2014www.churnsquad.com
About Us
Olivier Delerm
 20-year experience as
Marketing, Product, Sales
& Business Development
executive
 Operational and
Consulting experience
 Founder, A6 Group
 Past Executive at Siebel,
Certain Software,
Airframe
 20+ years’ experience
in post-sales support
 Author of 4 books
about support
management and
support marketing
 Founder, FT Works
 Was VP, Worldwide
Support at Scopus
Francoise Tourniaire
Contact Us
www.churnsquad.com
info@churnsquad.com
+1 415 287 4247

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ChurnSquad services: achieving negative churn via churn reduction, revenue retention and expansion

  • 2. © ChurnSquad 2014www.churnsquad.com Background Source: Customer Decision Journey (McKinsey) The Funnel is dead – long live the Customer Decision Journey The subscription economy is increasing the future value of customers Source: Guy Nirpaz, CEO of Totango
  • 3. © ChurnSquad 2014www.churnsquad.com Early-growth companies focus on new customer acquisition, not churn Source: David Skok “Manage Customer Success to Reduce Churn”
  • 4. © ChurnSquad 2014www.churnsquad.com The Path to Negative Churn Customer Churn Revenue Churn Revenue Expansion Negative Churn Do we measure it? Do we understand it? All customers are not equal − 1.7% monthly − 2.1% monthly + 1.0% monthly Upsell and cross-sell at work Expansion > churn? You have negative churn = − 1.1% monthly at $50M rev- $6.2MAnnual revenue lost:
  • 5. © ChurnSquad 2014www.churnsquad.com Why? Customer-facing organizations are focused on different objectives Sales •Early focus on hunting •Focus on farming comes later Marketing •Lead Generation •Product Marketing •Communication •Ambassador Programs •Customer Communities •Customer Com Services •Service Sales •Profitable Project Delivery •Long-term customer success Support •Customer satisfaction •Efficiency •Adoption •Cross-selling •Upselling •References + - Focus on New Customer Acquisition Focus on Customer Success + - + - + -
  • 6. © ChurnSquad 2014www.churnsquad.com The Solution: Early Focus on Customer Revenue and Churn 0 20 40 60 80 100 120 140 160 Year 3 Year 4 Year 5 Year 6 Year 7 Annual Recurring Revenue Without focus on Negative Churn With Focus on Negative Churn $42M $20M $4M $9M Assumptions: 100% new customer growth, revenue churn 15% vs -10% Just like early retirement savings, the compounded effect of customer revenue traction is spectacular
  • 7. © ChurnSquad 2014www.churnsquad.com Assess customer revenue process Create anti- churn plan Execute or coach plan execution Deliver or coach metrics and analysis Conduct reviews and transfer knowledge to in-house team Our Approach
  • 8. © ChurnSquad 2014www.churnsquad.com Anti-Churn Workshop℠ Getting Started  A strategic exploration of how to measure and manage the churn rate and maximize revenue expansion  How negative churn saps the growth rate  Why revenue expansion is key to success in subscription and renewal-dependent environments  Measuring churn and revenue retention  Methods to increase customer engagement  How Marketing and Support can work together to drive customer success  1-day engagement (interviews and group session)  2-page action summary
  • 9. © ChurnSquad 2014www.churnsquad.com Anti-Churn Blueprint℠ Assess and Plan  Comprehensive plan to manage, monitor, reverse churn rate, and maximize revenue expansion  Action plan covers  Monitoring churn and customer revenue  Improving customer messaging  Increasing customer engagement  Services driving customer success  Organization and processes  Can include Support & Services, Marketing & Sales  3-7 week engagement
  • 10. © ChurnSquad 2014www.churnsquad.com Anti-Churn Cure℠ Execution of the Blueprint  Implementation service for the blueprint  Flexible approach  Full management  Blended execution  Flexible scope  Internal process and organizational changes  Tracking of customer and revenue churn  Customer engagement programs  Ambassador programs to drive word-of-mouth and success stories  Upsell and cross sell offers and marketing  services marketing  6-12 week engagement
  • 11. © ChurnSquad 2014www.churnsquad.com Anti-Churn Metrics℠ Analyze, Understand & Monitor  Design and implementation of a turnkey analytics solution to monitor churn, identify patterns, and perform root cause analysis  Flexible deployment  Turnkey with insight delivered monthly or quarterly  In-house with coaching and training  Flexible scope  Data mining  Integration of heterogeneous data sources  Statistical analysis  Cohort analysis  Data visualization  6-12 week engagement to set up
  • 12. © ChurnSquad 2014www.churnsquad.com Case Studies  For a medical communication technology client  Implemented a formal customer success program to maximize adoption, hence add-on purchases  For a SaaS vendor  Turned renewal process into a segmented program focused on relationship and upsell/conversion and implemented collaboratively with marketing, customer service and sales  Defined and implemented churn, conversion and revenue retention and expansion metrics into weekly and monthly dashboards  For a large networking vendor  Trained the customer success managers to develop strategic plans to work with their accounts  For a web-based marketing services vendor  Assessed services portfolio and pricing against customer buying journey and mapped target markets and channels based on revenue retention and expansion opportunities
  • 13. © ChurnSquad 2014www.churnsquad.com The Path to Anti Churn Customer Churn Revenue Churn Revenue Expansion Negative Churn Do we measure it? Do we understand it? All customers are not equal Upsell and cross-sell at work Expansion > churn? You have negative churn − 1.2% monthly − 1.5% monthly + 2.1% monthly = + 0.6% monthly at $50M rev+ $3.5MAnnual revenue gain:
  • 14. © ChurnSquad 2014www.churnsquad.com This anti-churn self-assessment quiz will take about 15 minutes and help you identify areas of improvements in terms of measurements, processes and organizations. www.churnsquad.com/anti-churn-score-card Benchmark your Organization! Request the Guide
  • 15. © ChurnSquad 2014www.churnsquad.com About Us Olivier Delerm  20-year experience as Marketing, Product, Sales & Business Development executive  Operational and Consulting experience  Founder, A6 Group  Past Executive at Siebel, Certain Software, Airframe  20+ years’ experience in post-sales support  Author of 4 books about support management and support marketing  Founder, FT Works  Was VP, Worldwide Support at Scopus Francoise Tourniaire

Editor's Notes

  1. Explain Customer Acquisition vs Negative Revenue Churn
  2. Show phased approach, with or without usShow impact on revenue over the next 5 years