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Shifting to an Outcome-focused world

Customer Success Summit 2016 General Session
Presented by: Peter Armaly, VP of Research, Customer Success, TSIA

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Shifting to an Outcome-focused world

  1. 1. Shifting  to  an  Outcome-­focused  world Peter  Armaly Vice  President  of  Research,  Customer  Success
  2. 2. What’s  an  Outcome? 2
  3. 3. A  product 3
  4. 4. An  experience 4
  5. 5. A  train…  or…  a  better-­functioning  city 5
  6. 6. Food…  or…  national  security 6
  7. 7. Customers  care  about  having  a   good  experience  with  the  vendor   but  they  care  more  about  achieving   their  expected  Outcomes 7
  8. 8. Share  price  rises,  increase  in  valuation,  program  delivered   on  time,  health  improves,  life  is  more  fun,  etc 8
  9. 9. A  multitude  of  other  business  and  personal  goals 9
  10. 10. Customers  reward  companies   with  loyalty  when  their   Outcomes  are  achieved 10
  11. 11. Otherwise,  they  punish  them 11 TSIA  Technology  and  Services  50  -­ 2016
  12. 12. Market  Forces  in  Play 12 Profitable   Legacy  Model XaaS 2.0 Commoditized   Legacy  Model XaaS 1.0 OEM  Scenarios Demand  for  New  Consumption  Models Profitability  of Core  Offering
  13. 13. State  of  The  Industry 13 10% 10% 60% 20% OEM  Scenarios Demand  for  New  Consumption  Models Profitability  of Core  Offering
  14. 14. Year  over  year  persistently  high  Churn  rates 14
  15. 15. So  why  aren’t  CSMs  spending  more  time  on  driving  Adoption  activities   which,  in  turn,  drive  platform  stickiness  and  higher  rates  of  loyalty? 15
  16. 16. Many  companies  can  monitor  their  customers’  solution   consumption 16
  17. 17. But  only  a  minority  systematically  use  the  data 17
  18. 18. To  move,  you  need  to  figure  out  what  customers   value  and  deliver  that  before  you  can  gain   trust  and  establish  credibility 18
  19. 19. You  need  Customer  Success  to  drive  this   19
  20. 20. Unique  Traits  of  Customer  Success   20 • Close  proximity  to  customers • Responsible  for  driving  adoption  and  ensuring  customers  stay  on  the   platform • Are  proactive  and  curious • Are  process  and  data-­‐driven • Consider  the  customer  holistically • Are  good  herders • Desire  to  help  the  customer  grow  in  capability  and  ability  to   accomplish  more
  21. 21. CSM  Activities 21 Hard  to  reconcile.   Only  25%  of   respondents   employ  predictive   analytics   capabilities   So  few  yet  this  is  a   foundational   element  of   profiling  and  of   Outcome   Engineering  
  22. 22. What  next?   22
  23. 23. The  need  to  focus 23 1.0  Organizational   Strategy  and  Financial   Performance 1.1  Strategy  and  Goals 1.2  Business   Performance   Management 2.0   Opportunity   Management 2.1  Account   Segmentation 2.2  Opportunity   Management:  Renew 2.3  Opportunity   Management:  Expand 3.0   Customer  Success   Delivery 3.1  Customer   Onboarding 3.2  Value  and  Visioning 3.3  Enablement 3.4  Adoption   Monitoring 3.5  Opportunity   Identification 4.0   Success  Operations 4.1  Resource   Management 4.2  Talent   Management 4.3  Customer  Analytics 4.4  Contract  Analytics 4.5  Infrastructure 5.0   Success  Engineering 5.1  Success  Engineering   Function 5.2  Product   Portfolio   Alignment 5.3  Solution   Development 5.4  Intellectual   Asset   Management 5.5  Value  Engineering 5.6  Product   Integration 6.0   Success  Marketing 6.1  Success  Marketing   Function 6.2  Strategic  Pricing 6.3  Services  Rollout 6.4  Customer   Experience
  24. 24. Okay,  so  how  do  we  drive  Outcomes? 24
  25. 25. Value  realization  journey  mapping Listen  to  your  customers Build  profiles  of  customers  based   on  the  now  and  to-­‐be  stages Determine  what’s  systematically  required  to   move  them  to  that  next  stage  
  26. 26. The  Value  Realization  Journey 26 Stage  1 Stage  2 Stage  3 Stage  4 Value  realized  by  the  customer TSIA  – Outcome  Engineering   2015
  27. 27. HOW  is  Outcome   Engineering  Done   at  Scale?     Right  Framework Right  Outcomes Right  Tools Right  Customer
  28. 28. What  is  the  target  outcome? What  capabilities  are  required  to  achieve  the  outcome? What  is  the  financial  impact? What  are  the  KPIs  that  predict  financial  impact  will  occur? What  technology  improves  the  KPIs? What  practices  are  required  to  leverage  the  technology? What  roles  required  to  run  the  technology  and  practices?
  29. 29. Things  to  remember • Outcomes  depend  on  perspective • Pressure  on  to  precisely  understand  the  customer  and  to   deliver  those  outcomes,  at  scale • Customer  Success  is  best  positioned  to  drive  this  but   they  need  to  begin  to  focus   • A  structure  and  methodology  is  required  to  make  it   happen 29
  30. 30. ©  Technology   Services  Industry  Association