Customer Success: How Innovative Companies Are Reducing Churn and Growing Recurring Revenue

Praise for CUSTOMER SUCCESS

"Having been at Salesforce to witness the birth of Customer Success, I′m excited to see a book focused on this subject around which I have so much personal passion. One of the foundations of our success at Salesforce was Customer Success so it′s particularly great to see the history of the discipline, along with a glimpse at the future, documented in this book. I recommend it to every CEO or leader out there who is truly seeking to build a customer success–centric company."
Jim Steele, President and Chief Customer Officer, Insidesales and former President and Chief Customer Officer, Salesforce

"As one of the early investors in the technology of Customer Success, I′m particularly pleased to see the rapidly accelerating growth of the entire industry. The ′subscription tsunami′ as outlined in the book has profoundly disrupted the software world, and forced a focus on customers that did not exist previously. This book will help those who need to understand how this brave new world works, and also people looking for some practical guidance on how to execute successfully in the subscription economy. The team at Gainsight helped pioneer the Customer Success movement and definitely has the chops to put together this hitchhiker′s guide for those traveling the same road."
Roger Lee, General Partner, Battery Ventures

"The world is moving to a Subscription Economy, and this book directly addresses that shift. Smart companies aren′t trying to pitch products to strangers anymore. They′re figuring out how to grow, monetize and build an ongoing, mutually beneficial relationship with a dedicated base of subscribers. Customer success is fundamental to this process, and this book documents three core aspects philosophy, discipline, and organization in a sharp, practical way."
Tien Tzuo, CEO and Founder, Zuora

Gainsight Book Foreword xi

PART I Customer Success: The History, Organization, and Imperative 1

Chapter 1 The Recurring Revenue Tsunami: Why Customer Success Is Suddenly Crucial 3

Chapter 2 The Customer Success Strategy: The New Organization versus the Traditional Business Model 25

Chapter 3 Customer Success for Traditional Nonrecurring Revenue Businesses 45

PART II The Ten Laws of Customer Success 63

Chapter 4 The Practice of Customer Success 65

Chapter 5 Law 1: Sell to the Right Customer 69

Chapter 6 Law 2: The Natural Tendency for Customers and Vendors Is to Drift Apart 79

Chapter 7 Law 3: Customers Expect You to Make ThemWildly Successful 91

Chapter 8 Law 4: Relentlessly Monitor and Manage Customer Health 103

Chapter 9 Law 5: You Can No Longer Build Loyalty through Personal Relationships 113

Chapter 10 Law 6: Product Is Your Only Scalable Differentiator 125

Chapter 11 Law 7: Obsessively Improve Time–to–Value 137

Chapter 12 Law 8: Deeply Understand Your Customer Metrics 147

Chapter 13 Law 9: Drive Customer Success through Hard Metrics 159

Chapter 14 Law 10: It s a Top–Down, Company–Wide Commitment 171

PART III Chief Customer Officer, Technology, and Future 181

Chapter 15 The Rise of the Chief Customer Officer 183

Chapter 16 Customer Success Technology 199

Chapter 17 Where Do We Go from Here? 215

Index 229

NICK MEHTA is CEO of Gainsight, where he brings the right people together and puts them in the best position to win for customers, partners, employees, and their families. He′s a big believer in the Golden Rule, and he uses it to bring more compassion to interactions with others.

DAN STEINMAN is the chief customer officer for Gainsight. He is the author of dozens of relevant blogs, contributed articles, and Customer Success University created by Gainsight and a recognized thought leader in the Customer Success world.

LINCOLN MURPHY is founder of Sixteen Ventures, a consultancy helping companies accelerate growth through Customer Success. He′s a prolific writer and international speaker on Growth and Customer Success.