Traditionally, CRM systems were designed around sales and service. In the new realities of recurring revenue business models, in which customer value spans beyond a one-time sale, enterprises are now faced with challenges of retention, upsell and optimizing the entire revenue cycle. In this webinar, Guest Speaker Kate Leggett, VP, Principal Analyst from Forrester Research and Guy Nirpaz, Totango Co-Founder & CEO and the author of “Farm Don’t Hunt - The Definitive Guide to Customer Success” discuss: - A reality in which CRM systems need to span beyond sales and service in the subscription economy - The emergence of Customer Success Technology that allows companies to focus on customers - ​Ways to optimize the entire revenue cycle Customer Success, as a model and methodology, represents an opportunity for enterprises to break down the silos of customer data and business processes. Learn how this will lead to operational improvements around customer centricity and growing recurring revenue.

1. Justifying the Investment for
Customer Success Technology
Kate Leggett
Vice President, Principal Analyst
Guy Nirpaz
CEO & Co-founder

2. Justifying the Investment for
Customer Success Technology
Kate Leggett, Vice President, Principal Analyst

3. © 2016 Forrester Research, Inc. Reproduction Prohibited 3
Source: September 12, 2014 “The CIO’s
Blueprint For Strategy In The Age Of The
Customer” Forrester report
Customers Control the Conversation That They
Have with Businesses

4. © 2016 Forrester Research, Inc. Reproduction Prohibited 4
Our World Is Moving To A Subscription
Economy
Credit: www.zuora.com

5. The Subscription
Model has tipped
for most B2B
Software Categories.
And it shows no sign
of slowdown.

6. © 2016 Forrester Research, Inc. Reproduction Prohibited 6
EVERYTHING Is Becoming Part Of The
Subscription Economy

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Because Of This Relationships - And Outcomes
- Are Becoming More Important
Product Focused Relationship Focused

8. Vendors
Manage
Relationships
Vendors
Deliver
Products

9. 9© 2016 Forrester Research, Inc. Reproduction Prohibited
Onboarding
Driving adoption
Recognizing expansion
opportunities
Manage The Customer’s Journey With Your
Product During Their Lifecycle
Converting trials

10. 10© 2016 Forrester Research, Inc. Reproduction Prohibited
Customer success is about
proactively managing customer
relationships to impact churn,
increase existing revenue, and
influence new sales.

11. © 2016 Forrester Research, Inc. Reproduction Prohibited 11
Companies use CRM as a
foundation of customer
engagement
$32B
$24B
2015 2016 2017
63%

12. © 2016 Forrester Research, Inc. Reproduction Prohibited 12
CRM Started Simple
Marketing
Customer
Service
Sales
• Team and territory setup
• Sales processes setup
• Call scripts
• Contact & account mgmt
• Lead management
• Opportunity management
• Deal tracking
• Discounting and approvals
• Forecasting
• Sales performance
management
• Commissions management
• Incentive compensation

13. © 2016 Forrester Research, Inc. Reproduction Prohibited 13
Pre-purchase
sales journey
Post-purchase account
management journey
CRM Is Good For Sales – But Has Limitations
For Ongoing Customer Management

14. How can companies equip their customer-
facing personnel with the right information
about the customer in order to add value
with each interaction?

15. © 2016 Forrester Research, Inc. Reproduction Prohibited 15
Issues With
Data And
Insights
Rise To The
Top

16. Customer
Features
Inactive
users
Provisioned
users
Contract
Terms
Renewal
Realized
economic
value
Audit
records
Feedback
Advocacy
Support
feedback
Customer
feedback
Active
users
Goal
Measures
of success
Alerts
Calls and
tickets
On-
boarding
Customer Success Starts With Having The
Right Data

17. © 2016 Forrester Research, Inc. Reproduction Prohibited 17
And The Right Processes To
Manage Customer Success
DATA
INSIGHTS
WORKFLOWAggregation
Cleansing
Visualization
Segmentation
Personalization
Discovery
Map to customer journey:
Onboarding
Adoption
Retention

18. © 2016 Forrester Research, Inc. Reproduction Prohibited 18
Today’s Expanded
CRM Ecosystem
Needs To Include
Customer Retention
Technology
Marketing
Customer
Retention
Customer
Service
Sales

19. Thank you
forrester.com
Kate Leggett
Vice President, Principal Analyst
kleggett@forrester.com
Twitter: @kateleggett

20. Customer Success
Technology Explained
Guy Nirpaz
Co-founder & CEO of Totango

21. Author of
Farm Don’t Hunt
The Definitive Guide to Customer Success
Guy Nirpaz,
Founder and CEO of Totango

22. 1. Customer Love
2. Customer Satisfaction
3. Customer engagement
4. Customer Retention & Upsell
Customer
Success Is?

23. Why new technology?

24. 1 - The Customer Base Constantly Changes
2 - Grovevs. Wild Forest

25. Constant Stream of Customer Data that makes meaning over time
Stream of indicators Customer Health

26. We need a constant monitoring technology to be proactive
Relational Database
/ Record Keeping
Passive
Sensors/Monitoring
Proactive
Messaging System
Reactive
Sales CRM Service CRM Totango

27. SUBSCRIBE
RENEW - $
UPGRADE - $$$
Funnel Management
Turn prospects into subscribers
Customer Success Management
Retain and grow subscribers
Active
Subscriber Cancelled –
000$
CANCELProspect
Rec. Revenue businesses are dependent on customer retention and upsell

28. Customer Success: Proactively Impact Customer Lifetime Value
Onboarding
Nurturing
Renewal
Expansion

29. Customer
Success is
farming

30. GrowingNew
The RECURRING nature of the lifecycle
determines the operating model
z
In Renew/Upsell
Cancelled
SAVING
ACTIVITY

31. GrowingNew
Nurture is what we do most of the time
z
In Renew/Upsell
30
days
30
days
305 days

32. Customer Value
over
Customer Management
Source: The Customer Success Manifesto
New
ON BOARDING
ACTIVITY
Growing
NURTURING
ACTIVITY
In Renew/Upsell
HARVESTING
ACTIVITY
Cancelled
SAVING
ACTIVITY
DRIVERS OUTCOMES

33. As your customer base grows,
scaling Customer Success becomes
complex and unpredictable

34. Drivers
Results
Risks
ONBOARDING
PROGRAMS
ONBOARDING
PLAYS
ON-GOING
NURTURING
USAGE BASED
CAMPAIGNS
SAVING
PROGRAMS
ESCALATION/
SAVING PLAYS
PLAYS
Drivers
RETENTION
PROGRAMS
RECURRING EVENT-BASED
SUCCESS PROGRAMS& PLAYS
At Risk
In Harvest
Growing
New
Churn
--------------------
Retention
--------------------
Upsell
Save Rate
--------------------
ActiveEscalations
METRICS
Time to Value
--------------------
Satisfaction
Results
--------------------
Adoption
--------------------
Utilization
The Portfolio Scorecard

35. © 2016 Forrester Research, Inc. Reproduction Prohibited 35
And The Right Processes To Manage Customer Success
DATA
INSIGHTS
WORKFLOWAggregation
Cleansing
Visualization
Segmentation
Personalization
Discovery
Map to the customer journey:
Onboarding
Adoption
Retention

36. Putting it Together – Integrate into the CRM Eco-System

37. Think Fitbit connected to every user and customer
Alert for customers that
need attention
EARLY WARNING
SYSTEM
PROCESS & WORKFLOW CAMPAIGNS ANALYTICS
Drive user and account
behavior, adoption and
upsell
Analytics to predict
churn and upsell
Planning, execution, and
tracking of the key
business processes
PROACTIVE USER & CUSTOMER MONITORING
Monitor in real-time the keymetricsof adoption, value delivered,
utilization, operational incidents…
Engagement
Sensors

38. Simple, Smart, and Effective
Customer Success Technology
Team Performance
Campaigns
Retention Center
Account Scorecard
Mobile Portfolio Manager

39. Thank you!

40. Questions?
Kate Leggett
Vice President, Principal Analyst
kleggett@forrester.com
Twitter: @kateleggett
Guy Nirpaz
CEO & Co-founder
gnirpaz@totango.com
Twitter: @guynirpaz