Customer Success: Phase 6 - Value Realization and Business Reviews

Duration Strategy

Phase 6 should be as long as possible; the longer the customer remains, the more benefits they derive and the more likely they are to remain loyal.

Role of the CSM

The Customer Success Manager's role shifts from onboarding to ongoing measurement, reporting, and maintenance after onboarding is largely complete.

Core Objective: Measuring Progress

Measuring and reporting ongoing progress to ensure value realization.

Core Objective: Fulfilled Promises

Ensuring that promises made during pre-sales are fulfilled.

Core Objective: Milestones and KPIs

Verifying that milestones are passed and Key Performance Indicators (KPIs) are achieved.

Core Objective: Outcome Realization

Ensuring the ultimate outcome realization is on track.

Required Qualities for Success

Success requires research and analysis skills, creative problem-solving, and determination to succeed.

Engagement Strategy Review

CSMs must review if customer strategies are up to date since challenges or initiatives may have changed.

Establishing KPIs and Milestones

Identifying how to measure progress; if targets are unknown, they cannot be effectively achieved.

Reporting Value to Decision Makers

Decision-makers must understand that value is being delivered due to the tool; simply having value isn't enough.

Strategic Upsell and Cross-sell

Identifying new challenges that can be solved with additional products, framed as separate discussion points rather than aggressive sales.

Feedback and Advocacy

Obtaining testimonials and case studies, and inviting customers to become advocates.

Key Performance Indicators (KPIs)

Critical indicators of progress toward a result which suggest the likelihood of achieving the goal.

Leading Indicators

Early measurements that indicate the likelihood of achieving the ultimate goal.

Lagging Indicators

Measurements of final outcomes that take a long time to manifest.

Industry Example: Energy Management

Initial measurements focus on energy usage monitoring (leading) before actual energy reduction is measured (lagging).

Industry Example: Sales Systems

Total revenue is a lagging indicator; early indicators include increased meeting volume and upskilled staff.

Microsoft Perspective on Indicators

Satya Nadella emphasizes that revenue is a lagging indicator while usage is a leading indicator.

Visual Reporting

Visual charts are easier for decision-makers to understand compared to raw data tables.

The Jennifer Hurdler Example

A method of setting realistic progress milestones by plotting data points and understanding achievement limitations.

Customer Health Definition

The quality of the relationship between the supplier and client that determines renewal likelihood.

Health Scores

A combination of multiple KPIs that create a single score, often reported via a Red-Amber-Green (RAG) system.

Recommended Metric Count

Most organizations should use between 5 to 7 indicators; high-resource organizations may use 9 to 10.

Objective Performance Indicators

Hard data that cannot be argued with, such as login counts.

Subjective Performance Indicators

Data based on opinion, reflecting CSM perceptions of client satisfaction.

Quantitative Performance Indicators

Numerical values which are easy to compare but may lack context.

Qualitative Performance Indicators

Detailed data explaining the 'why' behind numbers, richer but harder to analyze.

QBR Principle: Begin with the End in Mind

Every meeting must have a clear 'What’s in it for me' (WIIFM) for all attendees.

Four-Way Value Model

Defines outcomes for the client organization, individual client stakeholder, supplier organization, and individual CSM.

What to Avoid in Business Reviews

Business reviews should not include technical troubleshooting, aggressive selling, product training, or financial negotiations.

The Value Chain

CSM Services support Core Services, which support the Customer’s Initiative, leading to Business Growth.

Audience Alignment in QBRs

Senior business leaders focus on strategy, not core service features, influencing the approach during reviews.