Practical CSM Framework: Phases 1 and 2

Introduction to Frameworks in Customer Success

• The concept of using a framework is anchored in a famous quote by Sir Isaac Newton: "If I have seen further than others, it is by standing on the shoulders of giants."

• The primary purpose of a framework is to reuse the hard work, trial and error, and established best practices of others rather than reinventing the wheel.

• Benefits of using a framework include:

  • Increased efficiency and productivity.

  • Provision of a pre-created, step-by-step process.

  • Ensuring key tasks are not forgotten.

  • Standardizing quality and order across a team.

  • Establishing documented assets and resources.

• The 80/20 Rule (Pareto Principle) in Frameworks:

  • $80\%$ of customer success management is similar across all companies and can be handled by a standardized framework.

  • $20\%$ is unique to the specific company, strategy, customer base, and product suite.

  • A framework allows CSMs to quickly address the $80\%$ so they can focus their time on the specialized $20\%$.

Overview of the Practical CSM Framework

• This framework is specific to the post-sales portion of the customer journey.

• Origins: Published in the book Practical Customer Success Management with a forward by Gene Bliss, a well-known Chief Customer Officer (CCO).

• Structure: The framework divides the journey into three major stages and seven distinct phases.

• Three Major Stages:

  • Initial: Focusing on initialization and readiness for both the CSM and the customer.

  • User Readiness: The most effort-intensive stage involving onboarding and adoption.

  • Ongoing: The longest stage, focused on maximizing long-term value and renewals.

• The Seven Phases:

  1. Phase 1: Preparation (Initial Stage).

  2. Phase 2: Commitment (Initial Stage).

  3. Phase 3: Onboarding (User Readiness Stage).

  4. Phase 4: Adoption Planning (User Readiness Stage).

  5. Phase 5: Adoption Implementation (User Readiness Stage).

  6. Phase 6: Value Realization (Ongoing Stage).

  7. Phase 7: Engagement Evaluation (Ongoing Stage/Transversal).

• Central Repository: The framework utilizes a central repository for data and information, ensuring proper access levels for all stakeholders.

Phase 1: Preparation

• This phase consists of activities performed by the CSM prior to meeting the customer stakeholders.

• Goal: To "hit the ground running," build immediate trust, and minimize assumptions or mistakes in early meetings.

• Core Research Categories:

  • The Initiative: Understanding the customer's problem, required vs. desired outcomes, major milestones, and business functions impacted.

  • The Solution: Understanding the bill of materials (BOM), solution components, implementation status, and promised outcomes/expectations.

  • The Business: Researching corporate mission, market position, value proposition (VP), and strategic objectives ($e.g.$, growth vs. consolidation).

  • The Stakeholders: Identifying decision-makers, reporting lines, personal KPIs, and preferred communication styles.

  • The Engagement: Reviewing contract details, sales history, previous pilots/trials, and current relationship sentiment.

• Research Sources (Priority Order):

  1. Internal Colleagues: Account managers, solution architects, and service managers.

  2. Internal Systems: CRM, sales software, and customer success management tools.

  3. The Internet: Company website and public corporate documentation.

  4. The Customer: Contacted last to fill remaining gaps and validate findings.

• Information States:

  • Accurate enough (within acceptable margins of error).

  • Not accurate enough (requires action).

  • Missing (requires discovery).

  • Unknown (requires validation).

• Outputs of Phase 1:

  • Documented research in the central repository.

  • Identified information gaps.

  • Initial Success Plan/Engagement Strategy including a high-level roadmap and proposed meeting cadence.

Phase 2: Commitment

• This phase focuses on meeting the customer and formalizing the CSM role and the engagement plan.

• Key Objectives:

  • Relationship building and building credibility/rapport.

  • Evangelizing the proactive, consultative nature of the CSM role to avoid being seen as reactive technical support.

  • Gaining alignment on outcomes and expectations.

  • Obtaining formal commitment to the success plan.

• The Senior Project Lead (SPL): The primary contact responsible for the initiative on the customer side.

• The Success Contract:

  • A formalization of the CSM-customer relationship.

  • Documents the work to be done, expected results, and the roadmap.

  • Encourages customer "buy-in" and ownership of the plan.

  • Can be a physical signature or a formal email acceptance.

• Stakeholder Management and Relationship Strategies:

  • Emotional Intelligence (EQ): CSMs should focus on self-awareness, social awareness, relationship management, and self-management.

  • Personas: Use personas for common roles ($e.g.$, CTO vs. Marketing Head) if specific personalities are not yet known.

  • Management Matrices: Use tools like the Stakeholder Management Matrix and the RACI Matrix (Responsible, Accountable, Consulted, Informed).

Questions & Discussion

• Question from Liz: Do you have recommendations or a checklist on what the internal handoff looks like?

  • Response: The speaker provides a specific tool for this (an Excel-based research checklist) as part of the certified training or the published book. This tool keeps track of customers, solutions, initiatives, and stakeholders.

• Question from Jerome: What will be the success proposal?

  • Response: This was addressed in Phase 2 as the Success Contract or Engagement Strategy. It is a proactive proposal from the CSM to the customer outlining how they will work together, the roadmap, and the specific activities required for value generation.

• Observation from Anna: Anna noted that the priority is understanding what we are trying to achieve and how the solution helps the customer.

  • Response: Correct. This forms the basis of the customer success plan.

• Interaction with Cassandra: Cassandra noted difficulty seeing specific spreadsheet examples.

  • Response: The speaker clarified that detailed tools and spreadsheets are provided in the paid certified training courses or via the book. However, the conceptual framework (Preparation and Commitment) remains the core of the discussion.

Final Checklist for Phase Completion

• By the end of Phase 1 and 2, a CSM should have:

  • Conducted research and filled most information gaps.

  • Formulated and presented an initial engagement strategy.

  • Met with the SPL and other key stakeholders.

  • Obtained commitment to a Success Contract.

  • Agreed upon a communication cadence and next steps.