Customer Success

Customer Success Influencers

Not much elaboration needed but a few words just to be clear about what I am saying in this doodle:

  • These three elements of product, service and strategy are the biggest (but not only) influencers on the success enterprise customers have with the use of their technology. For instance I believe the sales process and what is promised has a huge impact too but not for this list.
  • I’m indicating with the size of the circles which ones I believe have the most influence.
  • The pull and push points relate to the nature of the influence on the use and ultimate success of the technology.
  • I think most of the items listed in each area are clear enough but if you are not on the job to be done point I added a link to a good explanation. And on professional services, by these I generally mean paid for services delivered by the vendor or partners and could include things like change management, training, etc.
Future of Work, Sense Making

The changing influence of culture and technology at work and the battle for the mind

I work in a field that frequently deals with changing the culture of work through managed change engagements. They are most often aligned to new technology adoption or digital transformation efforts. In all this work, the typical influencers present themselves: people, technology and process.

I’m exploring the first two in this post and assuming people as being synonymous with culture. Mindset is a relatively new component I also delve into. This is an essay capturing recent observations on the changing influence of all these elements. You may get more questions than answers ;)

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Sense Making

The end of ownership and the rise of usership

Foundations

NOTE: this post is made up of 3 pages so click through the pages at the bottom to get it in full.

To own or to use is not a new concept. I started grappling with this at least 12 years ago when I worked for a technology division at Sony and we developed a mobile music streaming service with Vodafone. That was in the day before iPhone was launched, before Spotify, when the iPod was on the rise. I remember the naysayers at the time saying, no one will pay a subscription fee for a mobile service for music they don’t own. CAN YOU IMAGINE THAT??? Check out the video I recorded of the service back in the day in case you don’t believe me.

Erich Fromm wrote To Have or to Be in 1997 – from the blurb:

To Have Or to Be? is one of the seminal books of the second half of the 20th century. Nothing less than a manifesto for a new social and psychological revolution to save our threatened planet, this book is a summary of the penetrating thought of Eric Fromm. His thesis is that two modes of existence struggle for the spirit of humankind: the having mode, which concentrates on material possessions, power, and aggression, and is the basis of the universal evils of greed, envy, and violence; and the being mode, which is based on love, the pleasure of sharing, and in productive activity. To Have Or to Be? is a brilliant program for socioeconomic change.

How does that resonate for you 22 years later, in this day and age?

Customer Success, Future of Work

Beyond Technology Adoption – Business Scenarios with Microsoft Teams

Microsoft Teams is such an incredible work productivity tool. It doesn’t just bring work from other applications into the conversation but the whole tool itself. That plus the ability it offers to structure activities into logical workflows provides perfect context for bringing business scenarios to life.

Business scenarios are an important mechanism in beyond adoption to drive business value.

Check out a brief intro and demo I’m using with customers into the use of Teams in the context of an example business scenario (marketing), focusing on getting things done and driving value.

Future of Work, Sense Making

Meaning and models as future work motivators

We don’t all have the luxury to question why we are working and to what end.

Many are in dead end, soul sapping or even worse, life endangering jobs.

But the reality is they have no choice. No choice but to toil in whatever adversity they find themselves because there is no alternative

On the other hand, many in the first world are spoilt (and I count myself amongst them). We are lucky to have jobs and vast choices with global employment rates at all time highs.

We have incredible jobs, are highly paid and in fantastic industries.

And yet engagement levels at work are at all time lows.

I ascribe this near universal condition of motivation in first world employment to Maslow’s hierarchy of needs. Once our basic needs are met, we will naturally incline towards the higher levels and that is what my enquiry in this post pertains to.

I believe it is in the higher levels that we are falling short and this is leading to so much dissatisfaction and lack of engagement at work.

Dynamics of meaning

I have explored (and still am) many aspects of motivation and meaning because it is so fundamental to outcomes and success in the work I do with customers.

I have taken Maslow’s theory and applied it to organisations and this seems to have resonated: The Modern Organisation’s Hierarchy of Needs.

I am exploring that further in a very detailed manner in terms of the things that are measured and how this drives behaviour: Leading the right behaviours through metrics and new work models.

I believe at a practical level, with robots and AI taking some of the lower level jobs that we are going to be forced (or have the luxury – depending on how you see it) to the higher levels: The post robotic AI age and the role of creativity and innovation.

I am not alone. The purpose or meaning driven organisation and defining the elements of its success have practically become an industry. Culture as an important contributing factor too.

Whether out of necessity or luxury I believe this to be meaningful work, to get a little meta.

However, as Maslow suggested and I too believe, we will constantly be forced by circumstance (e.g. losing a job) or simply because its healthy, to re-evaluate the lower levels.

As individuals, it might mean our excessive food intake has become a problem that needs addressing. So too organisations might be forced to re-evaluate their business models when the basis for the industry they are in is disrupted.

Dynamics of the business model

I have suggested in my hierarchy of organisational needs that the business model sits at the lowest level. I posit that it is as basic and necessary for business survival to have a good model as it is for individuals to have food, water and shelter.

And the basic business model of many organisations is under pressure to be re-evaluated and transformed like never before.

One such pressure I am currently exploring in a new eBook / trend report is coming from the subscription economy. Software as a Service has influenced enterprise technology and this has led to a broader As a Service trend (that’s a link to all posts with the tag where you can find material I am using in my work).

Business model transformation and innovation has become an industry in its own right too.

I would argue that this sits within a context and hierarchy of its own. The context is probably organisational transformation and what is currently very much in vogue, digital transformation.

It terms of hierarchy, it probably sits at the apex.

I’m doing some work at the moment around these very elements and have two charts that I use to demonstrate these aspects.

By “elements” you can probably see that I don’t mean those of the business model itself (which something like the business model canvas does very well).

In terms of effort and impact, you can see business model innovation is the hardest to do yet has the greatest impact over time and in value terms. Too often I see the focus on lower level transformations because they are easy.

The thing the diagram at right also points to is the limited impact over time that innovations or transformations have, hence the need to constantly be innovating and transforming.

This brings me full circle to the two pinnacles of my modern organisational hierarchy framework: innovation and creativity. The need to constantly innovate and create (or re-create, in a circle of positive creative-destruction) is key in the future of work.

In conclusion

This also brings me to the motivation element in the subject of this post.

One point I make is about the critical role of meaning in our future work roles, as individuals and organisations. About how we must spend time defining what creates meaning and will make a difference and this means going beyond the basics.

The other point is about how we cannot ignore the basics but in the case of organisational business models, how crucial it is to work on reinventing these for greatest impact. But here too, we shouldn’t waste effort on lower level efforts.

I am highly motivated by all this at the moment. In turn I strive to make it key motivator for the efforts of individuals and organisations I work with because I think it will make all the difference.

Customer Success

Role of marketing in customer success

I attended a customer success meetup last Friday which produced some excellent conversation.

I’ve been thinking about the topic of this post for a while so added it to the list of discussion topics in the meetup. From the link above you’ll see it amongst a bunch of Post It notes.

It was bundled alongside sales topics naturally enough and then we expanded on this and the other sales topics.

I’m really interested in this topic because at the moment I’m working on a customer marketing platform that will help me scale my activities with my customers and those of many of my colleagues in the EMEA region. I’ve just launched it so it’s early days. I’ll be sharing more on that as I learn what works and doesn’t.

But back to the meetup. I cannot remember all of the detail we discussed as I didn’t take notes. From memory and with my own thoughts on the subject I captured a doodle which I think distils both the conversation and my thoughts sufficiently. I’m hoping some attendees will chime in with their thoughts/memories here or on LinkedIn where I’ll share this 😁

The doodle should be fairly self explanatory and readable I hope. Here are a few extra notes that struck me as I put that together.

Ownership

On a quick search you’ll find a lot on this topic so it’s worth doing the exercise and I don’t want to broaden this post out too much for now. The one that popped up at the top of the list for me makes some good points: How Customer Success and Marketing Work Together to Build Brand Advocates.

I haven’t distinguished roles in my doodle for who should be responsible for any of the activities, marketing or customer success departments.

I did feel that some of the items listed in the article above where strictly customer success activities that should not fall into marketing, i.e. its pure customer success work, not even customer marketing.

This and more is probably something worth expanding on and there is evidence of it being an issue: Why Customer Success Should Own Customer Marketing.

Interconnection, especially with Sales

This was a big topic of discussion of course as sales was the overarching topic bucket. In particular we discussed what is often a disconnect between what is promised by marketing and/or sales and then has to be delivered by customer success.

I’ve tried to capture the interconnections in my doodle with the lines between activities.

This is also something I’ve experienced being a problem and I’m sure there is a lot about this out there which I’m not even going to look for at this stage.

Suffice it to say that the hand-off between the different activities and roles needs to be seamless for the customer experience to be optimal. This was clearly expressed in the conversation.

Anything to add?

Customer Success

Update on As a Service trends

In my new eBook / trend report I will cover the As a Service trend (see point 9 here for more on that) and the role customer success plays in it. This post and others that follow will document examples of where I see companies exhibiting behaviours of this trend.

I first wrote about them in these two separate blog posts below:

I’ll also capture screenshots and include commentary in a daneldoodle as I have done below – click on each to enlarge.

Future of Work, Sense Making

Leading the right behaviours through metrics and new work models

Metrics drive behaviour. Organisations also know that they can better manage, what they can measure.

So if you want to change behaviours, look at the metrics you are using and how they are driving behaviours.

You also need to look at the models and frameworks in which the metrics are contextualised and which drive them.

The foundation

A while back I felt that an overarching model or framework for the modern organisation did not exist considering the many accelerating changes we face.

An holistic one that encompassed business needs as well as that of the individual and collection of individuals that go to make a business work.

One that was current and kept up with the times.

Abraham Maslow defined a model for the individual that started at a basic level and went through increasing levels of motivation through to actualisation.

It has been broadly adopted in many fields, including business and has survived the times. It focuses on the individual. I wondered if a similar model could apply to organisations and the Modern Organisations Hierarchy of Needs was born.

The application of an existing and accepted framework/model to a new field is nothing new and works if the respective fields have similarities and largely they do.

The new framework/model has been well received and even replicated since which is validation to some degree.

What is missing?

For one, the quantifiable, measurable determinants that would validate the levels and allow it be applied in a real world context.

Further external validation of the model itself is needed too.

I teamed up with Natalia Dobias (a colleague at Microsoft and a change management consultant) and we set about exploring the options.

One task has been to look at whether we could make the current model measurable and the reason for this post.

There are other factors we are going to look at to validate and indeed improve the model if we can.

In this post I wanted to work openly to capture and progress my thoughts on measurement of business performance in the context of the existing model. A classic sensemaking piece.

My theory is that if there are valid metrics being used out there for the many different levels and aspects of the current model, that is a form of validation.

What do good measures in the current model look like

On the basis of some simple Google searches I found a few good posts in each category and chose the ones that ranked at the top and I thought did the best job of covering the category. The exercise was simply to see if the category was covered and how well, as a proxy for its importance.

  1. Business metrics. Loads of results for this category as you would expect. Here is a great post that captures a wide array of business metrics. The author has done a good job of collating a range of metrics covering financial, human resource, marketing, sales and SaaS metrics. So many of these sub categories fit into mine below, naturally.
  2. Technology and Space metrics. This is also a broad area so some elaboration. This post covers the technology side on the pure IT function metrics but that is just one area. How technology helps achieve specific business outcomes requires delving into each business category the technology supports in helping to achieve those outcomes. That’s another area, for example, CRM tools are clearly designed to focus on driving revenue metrics for sales teams. Then, as with Microsoft where I currently work and perhaps uniquely, there is technology to help track personal and organisational productivity through use of technology. On space metrics, there is lots on the facilities management front, this post for example. What I was keen to find out was the impact of physical space on employees and any metrics that were used to judge that. Do a Google search on the keywords in italics and you will find much on the subject. I’ve kept these two areas together because technology is increasingly intertwined with the physical, think IoT, digital twins, etc.
  3. Culture metrics. Lots of results on querying this category. Some great pointers in this post and I thought worth mentioning because of its well rounded and holistic views on how culture impacts other areas, eg, innovation, collaboration, etc.
  4. Performance and learning metrics. My first port of call is metrics that HR departments will use to manage employee performance – great post here on that and many more besides. Similarly on the learning and development side which is a pretty robust field of study with a good post on that here.
  5. Creativity and innovation metrics. As I was hoping and expecting, tons of results on the innovation side and not just focused on R&D activities, the traditional domain for innovation performance measurement. This article captures some really good alternative metric categories for innovation. Creativity is a little more nebulous but is often tied into innovation. This discussion thread and in the last comment a whole bunch of excellent onward links, identifies the challenges and opportunities for measuring these two inter-related areas.

Other factors and new work models

In early discussions, Natalia and I have identified a bunch of opportunities for improvements and further work to develop a more robust model. I’ll share those here as we progress.

Metrics are just one aspect but you have to start somewhere and this is as good a place as any. This post does work that I never did on the model too, so is also a good start.

Metrics have shortcomings when they are purely business focused as I have been in this post. Without a sense check on ethical, social, humanitarian and other grounds, you could be blinded. By any measure (pun intended) there are some classic mistakes of this having gone wrong.

So the one thing that I think is missing from the model so far is the social impact of an organisation’s activities. Also the collective effort of the organisation – the network or community which was a problem identified in criticism of Maslow’s original Hierarchy of Needs – see underlined part that comes from Wikipedia. An organisation is after all a collection of individuals striving to achieve a singular purpose.

Natalia and I have our work cut out. This is a beast of an exercise but imagine having a “theory of everything” for the modern organisation. I’m looking forward to the journey in any event.

If you have any thoughts, research or experience to share, please hit us up in a comment below.

Customer Success, Sense Making

What good data looks like

This last week I attended a meetup and workshop in London organised by Customer Success Network, a European based not-for-profit community for customer success managers. It had the same title as this post.

An excellent session which started off with a few minutes of talking by Dan Steinman, GM Gainsight EMEA. I then facilitated one of the breakout workshop sessions on how good data should be used in QBR’s (Quarterly or Executive Business Reviews as they are commonly known). Here are some brief notes.

Getting started

Dan started off talking about we all have some “good enough” data, which should be good enough for starters. In other words, don’t get hung up with not having a perfect set of usage data or reporting setup. You can easily get started with things that don’t require usage data but can tell you a lot about your customer and how to manage them. Things like:

  • How long have they been a customer?
  • How many renewals have they done?
  • What is their ARR now vs originally?
  • Are they paid up on their bills?
  • # of Support cases open?
  • Survey results?

In terms of the elusive product usage data though, you HAVE to get it at some point. Some ways mentioned: Segment.io, MixPanel, Google Analytics, Aptrinsic. I’ve used MixPanel which was okay but had great experience with Looker too and in my current work I use PowerBI where we actually focus on enabling the customer to have the same views and insights as the customer success manager.

On the last point above, this is holy grail territory in my view because then you and the customer can have truly meaningful conversations since there is a plain and evident, single source of truth you can discuss strategies around.

Back to product usage data. Your product/engineering team should want it as badly as you do. Start with the bare minimum – logins, pageviews, reports run, etc. Don’t accept no for an answer.

Muck in even if it means having to learn a new tool. I remember spending an enormous amount of time learning first MixPanel and then Looker in my last role. All the product team had done was create the connections with the usage data and the reporting tool but how to make sense of it was left up to your own devices. But oh how rewarding when it works and you start making sense of the data and having the right conversations with the customer.

And its not just your product/engineering team who should want it as badly as you do. Marketing and sales teams have spent decades and millions perfecting understanding of prospects. Once they understand that customers are the new growth engine, they’ll be on board to help you create and share access to the same level of understanding on customers.

Different use cases for data

The workshop breakouts were pretty much focused on different use cases for data. I facilitated the one on QBR’s. The activity was focused on mapping as-is and to-be QBR data definitions. First we defined traditional definitions. Next we challenged these. How else could we focus on predictive or future-focused growth measures? What were they?

The output was a view of mapped current and future-focused CS measures, and why you’d use them. Here is the groups output after I took the raw material, cleaned it up, tweaked it and added a little of my own spin.

QBR To-Be – Traditional Approach
QBR To-Be – Future Approach

 The other breakout sessions all explored different aspects/use cases of data usage like:

  • You work in a small start-up where customer success is just evolving. You want to able to demonstrate the role of the team to show the impact you are making internally.
  • Your company has been expanding rapidly, the growth of MRR is now driven by expansions and upselling, which is owned by the Customer Success team. You’ve been asked by your CEO to demonstrate CS’s impact across the business to prepare for another round of funding.
  • Customer Success teams are increasingly expected to become more financially driven. This exercise was intended to demonstrate their role in contributing to the growth of the company.
  • Drawing out a success plan which would help the most immature customer success team understand:
    • What value looks like and where CSM’s can get data from (even if they don’t “have any” today)
    • How to track customer health through the life cycle with what they have

NOTE: There is an evolving document capturing the output of all the sessions.