Case Study: Transforming Customer Success
Background:
A leading revenue management software company, was in the middle of transforming it’s business from a On Premise software company to a SaaS company. In January 2020, a new Vice President of Customer Success was brought in to build and lead a Global Customer Success function with the overall responsibility of revenue growth, retention, and driving long-term renewals.
Challenges:
Upon joining, the new VP of Customer Success faced several challenges, including a negative Net Promoter Score (NPS) of -16, low customer satisfaction levels, and a lack of structured customer engagement processes. The company was struggling to retain customers and drive revenue growth from its existing customer base.
Solution:
The VP of Customer Success implemented a series of initiatives to transform the customer success function at the company. This included redesigning the customer engagement experience, mapping out a specific customer journey throughout the customer lifecycle, and implementing NPS and Customer Satisfaction (CSAT) processes to gather feedback and improve the overall customer experience.
Results:
- NPS improved from -16 to +39 during the tenure of the VP of Customer Success.
- Maintained a 95%+ gross retention rate and 120%+ net retention rate since the establishment of the Customer Success function.
-Company revenue grew from $161m to $264m during tenure with the company.
- Established an Executive Sponsor Program to deepen relationships with key enterprise customers.
- Built and led a Global Customer Success team, hiring and onboarding 20 individual contributors and three sales leaders within the first six months.
- Established a regular customer cadence of Strategic Business Reviews to ensure alignment between customers and the account teams.
Conclusion:
Through strategic initiatives and a customer-centric approach, the VP of Customer Success at the company was able to successfully transform the customer success function, drive revenue growth, improve customer satisfaction levels, and retain key customers while transitioning from an On-Premise software company to a SaaS company. This ultimately positioned the company for a successful sale to a leading private equity firm and set a strong foundation for future growth and success.
Case Study: Building Customer Success from the ground up
Challenge:
A leading cloud-based ERP platform for discrete manufacturers, was experiencing rapid growth but was facing challenges in customer retention and revenue growth. The company needed to establish a robust Customer Success function to drive long-term renewals, increase customer satisfaction, and ultimately grow revenue.
Solution:
In September 2014, the company hired a seasoned executive, with a proven track record in customer success, to lead the transformation of their Global Customer Success function. The Vice President of Global Customer Success was tasked with building and leading a team focused on revenue growth, retention, and customer experience.
The VP of Global Customer Success implemented various initiatives to drive revenue growth, including selling to new customer divisions, cross-selling/up-selling additional products and services, and implementing a Tier Engagement Model to support diverse customer needs. They also led efforts to redesign the customer experience, mapping a specific customer journey throughout the customer lifecycle to identify insights and enhance overall customer experience.
Results:
- Revenue growth increased from $68m to $152m during the VP's tenure.
- Gross retention rates improved from 89% to 95% since the establishment of the Customer Success function.
- Net Promoter Score (NPS) increased from -11 to +28.
- Implemented a Customer Health Review Team to monitor key customer health trends and deliver corrective action.
- Developed customer community programs to increase customer satisfaction, and user adoption, and build long-term relationships.
- Active participant and leader within the Executive Advisory Board.
Conclusion:
Overall, the transformation of the Customer Success function led to significant improvements in revenue growth, customer retention, and satisfaction. The VP of Global Customer Success played a key role in driving these results and establishing the company as a customer-centric organization focused on delivering value to its customers.
Transforming Account Management into Customer Success
Background:
A leading human capital management solutions provider, offering a comprehensive suite of software and services to help organizations manage their workforce effectively. In December 2012, the company hired a new Vice President of Global Customer Success to transform its Account Management function into a modern Customer Success team.
Challenges:
Upon joining the company, the new VP of Global Customer Success faced several challenges. The Account Management team, consisting of 70 Account Managers, was primarily focused on managing customer accounts and renewals, with limited emphasis on driving customer success and value realization. Additionally, customer retention rates were at 85%, below the industry benchmark of 90% or higher.
Actions Taken:
The VP of Global Customer Success took several strategic actions to address these challenges and transform the Account Management function into a Customer Success team. This included:
-Building a New Management Team: The VP hired experienced customer success leaders to build a strong management team focused on driving customer success and value realization.
-Restructuring the Account Management Team: The VP restructured the team of 70 Account Managers to align with customer success best practices, including implementing a tiered account management model based on customer size and complexity.
-Implementing Customer-Oriented Programs: The VP implemented various customer-oriented programs, including customer community programs throughout North America, to increase customer satisfaction and build long-term relationships.
Results:
The efforts of the VP of Global Customer Success resulted in significant improvements in customer success and retention rates. The key results achieved include:
-Increased Renewal Rates: Overall renewal rates improved from 85% to 96%, exceeding the industry benchmark of 90% or higher.
-Revenue Growth: The implementation of cross-selling strategies and additional products and services led to a revenue increase of over $30 million from existing customers.
-Customer Satisfaction: The implementation of customer community programs and other customer-oriented initiatives resulted in improved customer satisfaction and long-term relationships with customers.
Conclusion:
Overall, the transformation of the Account Management function into a modern Customer Success team under the leadership of the VP of Global Customer Success drove customer success, revenue growth, and increased customer satisfaction ultimately leading to a successful exit.