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Growing your Drupal Business via Strategic Account Management Framework
Piyush Poddar
Hello!
Piyush Poddar
● Director, Professional Services at Axelerant Technologies, Inc.
● Developer, Architect, Manager, Biz Dev & Account exec, Account Manager etc.. - Since 1997.
● Drupaler since 8 yrs
● Live in Jaipur, India
● Twitter.com/piyushpoddar
Why Account Management
● Proactively identify account risk● Reduce customer churn● Increase Customer Lifetime Value.● Generate leads for expansion.
Research shows that 70 percent of buying experiences are based on how the customer feels they are being treated
A Strategic Account Management Framework for Customer Success
Case Study
● Started as a “Small Tier” customer in Dec 2014● Shared Drupal Support of their existing platform
● Dedicated Account Manager, Customer Success Manager & Product Owner.
● From shared support to dedicated.● From minor enhancements to Epics & multiple projects.● Multiple development value streams.● “Strategic Tier’ Customer.● ARR growth 890% compared to first year.● High CHI (8.3) & NPS score.
World Organization of the Scout Movement
Strategic Account Management
Know your customerMore than just projects.
● Customer Facts● Customer Policies● Customer markets & our business● Customer financial performance● Customer Buying Process
Segment your Customer AccountsSelection criteria categories
Customer Outcome based Customer Need based Customer Attribute based
● Hard or quantitative factors
● Outcomes based on business you can do with customers like Purchase, Margin, Contribution, Profit etc.
● Factors that reflect the customer, like Turnover, Growth in their market etc.
● Qualitative but specific & measurable
● Likelihood of your company’s retaining their business
● Factors that reflect your strategy like Global Presence, Dedication to compatible platforms, etc.
● Indicates future relationship with your company
● Softer than other two categories, but assessable
● Factors that dictate how customer might behave in future like decision-making structure, attitude towards relationship, keenness to pay for value etc.
Segment your Customer AccountsSome Popular Criterias
● Contract value● ARR/Revenue potential● Strategic Fit● Brand value● Industry/Vertical
Segment your Customer AccountsScoring based on criteria & strategic weightage
Tier 1 ( Strategic )
Score : 850 - 1000
Tier 2 ( Standard )
Score : 600 - 849
Tier 3 (Small )
Score : 200 - 599
Strategic Account Management Organisational Structure
Strategic Account Management Organisational Structure
Account Management Organisation
● Director of Account Management● Account Manager● Customer Success Manager● Director of Customer Success● Executive Sponsor
○ Typically C-suite or VP
Customer Organisation
● Executive Decision Maker● Adoption Champion : Mid-level Manager ● Others
Account Management Artefacts
Account Risk Register
Strategic Account Plan
Strategic Account Plan enable Account Management & Customer Success Teams to collaboratively develop, track & realize the strategic plan for their customers.
Plan may include joint or internal goals, to help ensure your customers keep growing with your services.
Account Score Card
Scorecards help quantify & easily track the health of customer
● Summarized Health view of engagement● A combination of metrics - both quantitative & qualitative● Signals whether the customer is likely to stay, expand their use, or if they're going to
churn● Includes indicators for
○ Updated risk status across 8 categories○ Customer survey scores ( NPS & CHI )○ Other data points
Customer Lifecycle Stages
New Customer Onboarding Adoption Advocacy
New Customer Onboarding Adoption Advocacy
Customer Lifec ycle Stages
Customer Lifecycle
ACTIVITY : Sales Handoff
New Customer Onboarding Adoption Advocacy
● CRM Updation● Opportunity Evaluation & other contract documents
handed over● Account Manager & Customer Success Manager’s
assigned
ParticipantsSales & Account Management Group
FrequencyOnce
Customer Lifecycle
ACTIVITY : Kickoff Meeting
New Customer Onboarding Adoption Advocacy
● Company Introduction & Partnership overview● Engagement & Communications process● High Level Engagement Schedule● Synopsis of tools & operational dynamics● Engagement Scope & Deliverables● Assumptions & Risks● Account Management & Customer Success Team.● Invoicing & collection schedules / expectations● Seek Business Challenges Index● Success Plan creation initiated with Customer Inputs● Next Steps
Participants ( Company ) Account Manager ( Lead ) , Customer Success Manager, Exec Sponsor, Account Manager/ Customer Success Leader(s)Participants ( Customer ) Product Owner, Executive Sponsor, …
MediumVideo Conferencing
Customer LifecycleSubtitle here
New Customer Onboarding Adoption Advocacy
Customer Lifecycle
ACTIVITY : Technical Onboarding
New Customer Onboarding Adoption Advocacy
Participants ( Company ) Customer Success Manager
● Systems Onboarding● Preparation of Strategic Account Plan ( Account
Engagement or Action Plan ) ○ Goals & Objectives of the customer○ Action plan for achieving each of customer goals.○ To stop reacting, & proactively manage the
customer to keep & grow the relationships & revenues
● CSM sends update to all parties ( Customer product owner, Executive Sponsor & any other involved) involved at the end along with a Welcome Kit
Customer LifecycleSubtitle here
New Customer Onboarding Adoption Advocacy
Customer Lifecycle
ACTIVITY : Regular Account Review ( Internal )
New Customer Onboarding Adoption Advocacy
● Account Scorecard & Customer Adoption Trend● Business Challenges & Risks tracked. ● Strategic Account Plan review● Customer Happiness Index report & NPS report review● Upcoming Renewals/ Upsell opportunities
Participants ( Company ) Account Manager , Customer Success Manager
Medium In Person, Video Conferencing.
FrequencyTier 1 / Strategic : WeeklyTier 2 / Standard : Fortnightly Tier 3 / Small : Monthly
Customer Lifecycle
ACTIVITY : Check In with Customer
New Customer Onboarding Adoption Advocacy
● Strategic Account Plan review● Review Account Scorecard & other Updates● Business Challenges & Risks tracked. ● Customer Happiness Index report & NPS report
reviews● Upcoming Renewals/ Upsell opportunities
Participants ( Company ) Account Manager, Customer Success Manager
Participants ( Customer ) Adoption Champion
FrequencyTier 1 / Strategic : WeeklyTier 2 / Standard : Fortnightly Tier 3 / Small : Monthly
Customer Lifecycle
ACTIVITY : Executive Business Review
New Customer Onboarding Adoption Advocacy
● Introductions & Company Updates ( Recap since last EBR, Company Growth, Thought Leadership, Events evangelised, Featured Posts, Community Contributions, )
● Executive Summary ○ Strategic Account Plan Highlights○ Health & Adaption Highlights○ Score Card○ Looking Forward
● Strategic Account Plan Details○ Plan Objectives○ Timelines & Status of each objective & tasks
● Continued ...
Customer Lifecycle
ACTIVITY : Executive Business Review
New Customer Onboarding Adoption Advocacy
...continued● Health & Adoption
○ Account Scorecard & Customer Adoption Trend● Next Steps
Process● T - 30 : Schedule Review Meeting● T - 0 : Conduct 30-45 minutes EBR meeting● T + 2: Send Thank You Email & Action Plan (post disc.
with task owners) ● T + 2 : Assign actionable tasks or activities to internal
team members, & monitor via Account Review weekly & Customer Success Review monthly
Participants ( Company ) Account Manager (Lead), Customer Success Manager, Exec Sponsor, Account Manager or Customer Success Leader(s)Participants ( Customer ) Adoption Champion, Executive Sponsor
FrequencyTier 1 / Strategic : Quarterly Tier 2 / Standard : Semi Annually Tier 3 / Small : Annually
Customer Lifecycle
ACTIVITY : Executive Check-in
New Customer Onboarding Adoption Advocacy
● Our President/Directors/VP’s & other senior leaders from across departments are assigned as Executive Sponsors to strategic accounts.
● Objectives○ To uncover latent challenges in our strategic
accounts○ To maintain Exec level Repo with Customer
Executive Decision-Maker via frequent check ins○ To allow cross departmental visibility & oversight
on core customer success health
Participants ( Company ) President/ Directors / VPsParticipants ( Customer ) Executive Decision Maker
Medium In person, phone call
FrequencyTier 1 / Strategic : MonthlyTier 2 / Standard : QuarterlyOn Demand by A/M or CSM.
Customer Lifecycle
ACTIVITY : Customer Exec Sponsor Tracking & New Sponsor Buy-in
New Customer Onboarding Adoption Advocacy
Participants ( Company ) Exec Sponsor, Director of Account Management, Account Manager & Customer Success Manager
Participants ( Customer ) Customer Exec, Adoption Champion
● To uncover latent challenges in our strategic accounts● To maintain Exec level Repo with Customer Executive
Decision-Maker via frequent check ins● To allow cross departmental visibility & oversight on
core customer success health.
● Track Sponsors via check-in calls, monitor social (LinkedIn, Twitter, & other channels) for signals.
● Invite new sponsor for Introduction & Overview Call○ Introduction & Partnership overview○ Strategy Alignment Overview
Customer Lifecycle
ACTIVITY : Skip level meetings with team ( Internal)
New Customer Onboarding Adoption Advocacy
Participants ( Company ) Company Director of Account Management, each account or group team members other than their managers
FrequencyMonthly
Focus on opening & sustaining lines of communication
● How are things?● Any challenges?● Scope of improvements?● What do we want to change?
Customer Lifecycle
ACTIVITY : Internal Risk Meetings
New Customer Onboarding Adoption Advocacy
Participants ( Company ) Director of Account Management , Account Managers, All 8 Risk owner Execs
FrequencyWeekly
Review of 8 Risk Categories across the company with focus on High Risk Items
Account Managers ensure that the Risk Owners understand the use cases behind relevant risks & have an action or timeline plan to resolve these
Action points are inputs to the Strategic Account Plan
Customer Lifecycle
ACTIVITY : Customer Surveys - NET PROMOTER SCORE
New Customer Onboarding Adoption Advocacy
Customer Lifecycle
ACTIVITY : Customer Surveys - NET PROMOTER SCORE
New Customer Onboarding Adoption Advocacy
Customer Lifecycle
ACTIVITY : Customer Surveys - NET PROMOTER SCORE
New Customer Onboarding Adoption Advocacy
Customer Lifecycle
ACTIVITY : Customer Surveys - NET PROMOTER SCORE
New Customer Onboarding Adoption Advocacy
0 - 6 are Promoters : loyal customers & a great source of referrals7 - 8 are Passive : satisfied with the service but are susceptible to competitors9 - 10 are Detractors : unhappy customers & can damage your brand
A score of greater than 50 is excellent, although it’s possible to have a negative score as well
Customer Lifecycle
ACTIVITY : Customer Happiness Surveys
New Customer Onboarding Adoption Advocacy
Surveying customers for their happiness at critical points during the customer lifecycle is a great way to collect & quantify customer loyalty metrics
CHI = Satisfaction Score (1-10) + [Loyalty (Percentile within Organization)/10] + Propensity to Recommend/NPS
Customer LifecycleSubtitle here
New Customer Onboarding Adoption Advocacy
Customer Lifecycle New Customer Onboarding Adoption Advocacy
All Adoption Activities plus● Renewal / Negotiation meetings● Referal programs ( incentivized)● Invite Customer to Key events
Account Management Metrics
”If you can’t MEASURE it, you can’t manage it”
- Peter Drucker
Account Management Metrices
● Leading Indicators of Renewals○ Renewals Eligible This Quarter○ Net # of clients moved into Green or Lime○ Net Promoter Score○ CSAT (Customer Satisfaction Survey)○ Renewals Eligible this Quarter
● Leading Indicators of Expansion○ Customer Lifetime Value○ CSM qualified Upsell Opportunities by
Customer Tier○ Account Management qualified upsell
Opportunities by Customer Tier○ Upsells Eligible This Quarter
● Leading indicators of New Business○ # of Sales References○ # of Case Studies○ # of Prospect Meetings that the CSM
joined & after which the prospect signed a deal with us
○ # of Opportunities generated through Referrals
● Retention○ Customer Churn Rate ○ Gross Renewal Rate
● Cost Metric: ○ Cost per $ of renewal; cost per $ of upsell
Account Management Metrices
● Life Time Value (LTV) = “(Average Value of a Sale) X (Number of Repeat Transactions) X (Average Retention Time in Months or Years)”
● Customer Acquisition Cost ( CAC )
● Customer Churn
● Customer Service Satisfaction Rating ( CSAT )
● Net Promoter Score (NPS)
Most Important Metrices
Account Management MetricesVisual Representation
Account Management MetricesVisual Representation
NPS vs. Revenue ( ARR )
$950k $895k $102k
$1,700k $1,410k $149k
$1,240k $1,800k $267k
Detractors
Passives
Promoters
Met
ric
Service A
Service B
Service C
Recommended Readings & Credits
● Customer Success: By Nick Mehta, Dan Steinman & Lincoln Murphy● Key Account Management: The Definitive Guide by Malcolm McDonald & Diana
Woodburn● The Challenger Sale: How to Take Control of the Customer Conversation by
Matthew Dixon & Brent Adamson● Gainsight.com● helpscout.net/blog● Zendesk.com
Questions?
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