Do You Need Customer Success? 7 questions to help make your decision.

Knowing where not to spend your time is as important as knowing where you should spend it.  Today’s buyers are more savvy, and demanding than they were just yesterday.  They are also more comfortable doing business with multiple providers versus selecting one preferred provider.  Left unattended, or worse ignored, buyers will seek to fulfill their needs as quickly and easily as possible.  The question for your business is simple:  do my customers know everything I can offer them?  If you’re like most businesses, the answer is simply “no”, our customers don’t know the depth of our capabilities, and this gap creates a significant risk to future revenue.

Customer Success focuses on three primary areas:  increasing customer retention rates, capturing a deeper share of wallet via cross-sell initiatives, and improving Net Promoter Scores.  Happy, more satisfied customers, tend to feel better about committing more of their spendable dollars with a business.  This translates into buying more products, additional services, or extending current terms of their services.  Effective Customer Success models can be measured by evaluating CLTV, or Customer Lifetime Value.  An increase in CLTV may be attributable to the effectiveness of your Customer Success program.

So how do you determine whether or not create and launch a Customer Success program?  Answer these 7 questions:

  1. What is the current retention rate on your existing customers over the past 12 months, and further 3 years?  If retention rates are low, or declining over a period of time, this is an indicator – although lagging – that a focus on Customer Success may be needed.
  2. What is your current Net Promoter Score and how often are you measuring it?  Low NPS scores can be an indicator of your customers willingness to move, or leave your company.  Dissatisfaction, lack of trust, unrealized value, are just a few sentiments that can be traced to low NPS scores.  Bottom line, the lower the score the more at risk your revenue is.
  3. What is the ratio of products per customer?  The retail banking industry has long tracked this ratio yet it hasn’t moved much.  The average bank has 2.3 products per customer.  Wells Fargo for years has been the king of this ratio touting an impressive 3.2 products per customer.  Of course this ratio must be evaluated against the total number of products you can offer to your customers.  The more products, the higher you want your ratio to be.
  4. What is your current account management strategy for engagement and interaction?  How often are you engaging your current customers?  What methods are you using to touch your customers?  Email, phone calls, visits, quarterly business reviews?  Does your customer have an assigned account manager?  Is that account manager’s compensation dependent upon a rise in NPS scores, and/or increase in customer revenue?
  5. How many referenceable customers do you have?  How many customers have agreed to be a reference for your company?  How many are willing to provide a testimonial either video or written?  How many of your customers are willing to engage in issuing a press release publicly demonstrating their chosen alliance with your company?
  6. How much of your current revenue is generated from existing customers versus new logo sales?  The more reliant a business is on existing customer revenue to make its number, the more exposure that business has to any volatility in customer attrition.  Furthermore, if your existing revenue is overweighted with a handful of customers, your revenue risk exposure is even greater.  It’s likely time to look at a Customer Success model.
  7. What is your 3 year history of renewal rates?  Have they increased, decreased, or remained the same?  If renewal rates are flat, or decreasing you likely have a need for Customer Success.

If your company is experiences decreasing retention rates, low NPS scores, and fading revenue from its existing book of customers, it may be time to focus on developing and implementing a Customer Success model.  Remember, your cost of acquisition is already sunk, yet your customer lifetime value can still be influenced.  Focusing on building meaningful relationships with your customers translates into increased revenue, improved brand value, and drives new logo sales by providing a stable of referenceable customers who become brand ambassadors.

If you would like to further explore whether a customer success model is right for your business contact me at josephgderosa@gmail.com.

Sales Enablement: A Sales Leaders Secret Weapon.

SalesEnablement

Every sales leader looks for an edge. They may have a dozen different levers they can pull in their attempt to improve results.  Some may provide a quick result, while others take time to build momentum.  The key is finding the right mix of short and long term actions that enable their team to sell more, in a shorter period of time. Introducing sales enablement can become the sales leaders secret weapon to achieve their goals today, tomorrow, and the next day.

The simple objective of sales enablement in any business is to maximize each interaction a sales person has with every prospect with the goal of winning the business. Said differently, it’s all about improving my team’s win ratios.  The major components of sales enablement include:

  1. Recruiting and On-Boarding
  2. Sales Training
  3. Team Development
  4. Conduit between Sales and Marketing

As a sales leader who has championed the introduction of sales enablement in a number of different companies I have experienced the following results:

  1. Improvements in selecting the right candidates – up to a 90% success rate in the first year.
  2. Significant decrease in ramp time – from 9 – 12 month ramp, down to 90 – 120 days fully producing sales representatives.
  3. More effective sales presentations leading to better outcomes – introducing sales training that focuses on providing a balance between knowledge and the application of that knowledge has created a 15 – 30% increase in close rates.
  4. A strong brand ambassador for the company – a better trained sales representative is more likely to project a sense of strength and confidence that likewise fosters confidence with the buyer.
  5. Great collaboration within the Sales team.  Sharing best practices that can be collected and put into a sales playbook creates energy, excitement, confidence and momentum for any sales team.
  6. Great collaboration between the Sales and Marketing teams. When Sales knows what Marketing is doing, and Marketing understands the outcomes of those efforts from a Sales viewpoint, alignment is created between the two.  Collaboration tears down walls and fosters a culture of learning, or testing.  When Marketing and Sales work together the business wins more than the revenue they created collectively.

I would love any stories you have on your sales enablement successes.  I’d also be interested to hear from the skeptics as well. There is a growing body of work on sales enablement that I’d be happy to share with those who are interested.

Becoming a Brand Master: Lessons Learned From Taylor Swift & Jony Ive

Taylor Swift

Taylor Swift gets branding. In fact, I’d put her up against most of today’s “branding experts” as being a true master brand manager.  Swift is an artist but also a great businesswoman.  She has a clear vision of what the Taylor Swift brand delivers.

Jonathan (Jony) Ive, the world renowned industrial designer at Apple who is largely credited with the iPod’s sleek design and UI is also a master brander.  He has a deep understanding of what buyers need, and want, and focuses his efforts, and those of his team, to deliver products that meet those needs.

JonyIve

While Swift and Ive may have taken different paths to be becoming brand experts, both share some common characteristics that all marketers can learn from if they desire to become master branders.

  1.  Establish clear goals for your brand.  Is your goal to appeal to the mass market or to a niche? No brand can be everything to every one.  Taylor Swift may be a great musician and artist but there’s still those who prefer heavy metal to her country-pop. Ive’s iPhone may have an awesome design but there are millions of buyers who prefer the Android operating system over iOS. Pick your lane and nail it.
  2. Focused intensity.  Once you’ve identified your goals and they are in clear sight, go after them with focused intensity.  Having focus is wonderful, but having intensity with focus will drive you to reach your goal quicker.
  3. Always be kind, even when acting otherwise would be completely acceptable.  Every brand is susceptible to negative comments.  Can anyone say Kanye? Buyers are always watching your behavior. Be honest, be transparent, and take the high road. It doesn’t mean rolling over or not defending untruths, but do it with a smile.
  4. Be a perfectionist.  Branding is an art, and we all know art is not perfect, otherwise it wouldn’t be art. But being a perfectionist relative to executing your branding strategy is something that sets brand masters apart from those that tinker in branding.
  5. Stay above the fray, operate with a touch of paranoia.  Looking over your shoulder isn’t always a bad thing.  Two things I learned growing up that that help with this concept are; nothing good happens after dark, and what would your grandparents think?  Your brand is your own and you can do with it as you please.  Just make sure you’ve thought through the implications of acting or speaking a certain way and then accept the outcomes. If someone in your company does something that has a negative impact on the brand it’s up to you, the brand master, to take action and deliver consequences.

These may appear to be small things.  Maybe even trivial things.  And while much of what we experience in life would suggest we NOT sweat the small stuff, when it comes to our brand, nothing is too small an item to not sweat.