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Customer Success Maturity Model

Presented by: Phil Nanus, VP Research, Customer Success, TSIA

www.tsia.com Source: TSIA Services Organization Study

“Customer Success” is gaining ground as the term to describe the complete global services organization.

Customer Success as a Theme

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Common practice for the following service lines to report into a Global Services or Customer Success executive: Customer Success,

Consulting Services, Technical Services, and Field Services

3Source: TSIA Services Organization Study

SSSupport Services

PSProfessional

Services

ESEducation Services

FSField

Services

CSCustomer Success

CustomerSuccess

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Answering the Key Questions of Customer Success

What

How

When

Why

Who

Customer Success is the intersection between the promise of a suppliers' technology and the customers’ desired business outcome.

Customer Success is delivered through time, event, and value based interactions between the customer, the supplier, and the suppliers’ technology.

Customer Success requires prescriptive customer engagement throughout the lifecycle between the supplier and the customer to ensure the promises of the suppliers’ technology are realized.

Customer Success organizations and/or initiatives are focused on effective technology Adoption that leads to increased Renewal Rates and Expansion opportunities.

The people that are executing against all of the above are members of Customer Success organizations and are commonly referred to as Customer Success Managers (CSMs).

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HOW

WHO

WHY

Customer Success MaturityCS

CapabilityPhase 1

‘Forming’Phase 2

‘Storming’Phase 3

‘Norming’Phase 4

‘Performing’

Charter What is Customer Success?

Customer Success is thematic.

Alignment to one of three core charters; Adoption, Renewal, or Expansion.

Multiple Charters that facilitate effective Adoption leading to higher renewal rates and expansion opportunities.

Effective Adoption Supplier does not collect any Adoption information.

Supplier collects limited information about customer engagement but it is manual.

Automated collection of customer interaction with supplier technology, but low adoption.

Effective adoption practices including information on Who, Quantity, Stickiness, Data Quality, Efficiency, and Business Outcomes.

Prescriptive Engagement

Supplier is acting in a legacy model where they sell technology and Customer has responsibility all delivery.

Begins to establish Voice of the Customer feedback programs including NPS, Effort Score and CSAT.

Begins to establish proactive activities including Customer Journey map, Onboarding program, and QBRs.

Documented customer success plans and workflows and playbooks established that align to Value, Event or Time based triggers.

Economics/Metrics and Scalable Funding

XaaS pivot, and supplier starts to evaluate if Churn is a problem as recurring revenue models become increasingly more important.

Funding customer success on a Project basis to improve Customer Experience.

Funding from existing Support (COGS) or Sales (S&M) organizations as team is being established. Measuring Renewal, and Churn.

Monetizing Customer Success funded out of COS. Customer Success at scale funded out of S&M. Measuring CAC, CRC, CEC and Expansion Rates.

Organizational Structures and Capabilities

Not documented, beyond marketing customer success stories or references.

There may be a CS or CX leader or there may be a matrixed program between other leaders and the rest of the company.

CSM or analogous roles exist, but are initially reactive in nature. Limited to no structured work product.

More proactive CSM role. Career Path Matrix, CS organization reports directly to CEO or into Customer Growth team.

WHAT

WHEN

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Contact TSIA to learn more about Customer Success research and membership. Let’s talk! >

Phil NanusVP Research, Customer Success