secrets of customer onboarding

© Copyright 2010. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

L E A D E R S H I P P R O B L E M SO L V I N G V A L U E C R E A T I O N

The Secrets to Customer Onboarding SuccessHow to Turn New Clients into Business Partners

January 21, 2014

The Secrets to Customer Onboarding Success – January 21, 2014

Confidential. For discussion purposes only.


Is Client Loyalty an Oxymoron?

Establishing Long-Term Partnerships with the Right Service Provider is Key• About 50% of clients were “indifferent” when asked to rate their loyalty to their service provider• It is easier for a client to work with a “known-quantity” rather than hiring someone new

Client Loyalty is Created through a Healthy Balance of Trust and Authenticity• Companies do not create value unilaterally• Why do customers choose you instead of your competition?• Different customers have different needs

In a study by analysts at Ross McManus, 1,200 senior executives gave their service provider a C+ grade for client satisfaction. Top dissatisfaction driver: Understanding the client’s business

Understanding and addressing these needs is an imperative

Flawless Results is Also a Key Driver• Companies hire service providers for one key reason: Results!• The prerequisite for long-term client relationships is the consistent delivery of benefits and value throughout the duration of the

client or customer engagement

Another Key to Earning Client Trust is Acting in their Best Interest• Do your homework on your client’s business• Present solutions to your client’s most pressing problems• Are you confident that your idea or solution exceeds the “value-to-fee” ratio for your client?

2

Client Acquisition and Loyalty is tougher to come by than ever before.

While fierce competition and bargain hungry clients may be a driver, the truth is the client or professional services business is a relational one founded upon truth and authenticity




Three Truths and a Lie

Truth # 1 – You Can Only Sell to Someone Who Can Buy• Don’t spend your time on resources who do not have the authority to buy• The process for purchasing decisions need to be sniffed out

Truth #2 – A Prospect Must Recognize They Have a Need Before They Purchase• No sale is ever possible unless the person who has the authority to make a purchase recognize the need themselves

Truth # 3 – Your Buyer or “Coach” Must Have a Vision on How to Solve the Problem• The buyer must see how the current situation can be improved

The Lie – Sales is a Numbers Game• It is far more productive to sell to prospects who meet the established pipeline or key account planning criteria

3

Client Acquisition and Loyalty is tougher to come by than ever before.




Key Account Planning

Key Account Planning – What is it?

A process and a document to:

1. Educate the team

2. Help direct and anchor business development and account planning activities

3. Provide a central location to capture intelligence about your customers or clients

Tiering Your Account Plans Is a Way to Get Focused

4

Understanding the customer or client’s business are essential for creating loyal clientele. Therefore. the first step in successful customer onboarding is Key Account Planning. The process must become a part of a companies operating practice and business.

Tier One (Key Account) Tier 2 (Mezzanine) Tier 3 (On-Deck)

• Strong relationship with key buyer or multiple key buyers

• Strategic account with significant chance of generating work

• Periodic meetings with group as necessary

• Assistance with creating structured way to follow-up on action items

• Forum to brainstorm and identify areas of opportunity to share with

• Relationship with key buyer or one degree from key buyer (Using LinkedIn as Business Intelligence source)

• Periodic meetings with group as necessary

• Action items and action item owners documented

• Key Account Plan (Lite)• Constant monitoring of company• Assistance with creating structured

way to follow-up on action items

• On-deck relationship with someone one to two degrees from buyer (Using LinkedIn as Business Intelligence)

• Looking to build key relationships• Constant monitoring of company




Key Account Planning

5

Understanding the customer or client’s business are essential for creating loyal clientele. Therefore. the first step in successful customer onboarding is Key Account Planning. The process must become a part of a companies operating practice and business.

Key Account Plan Elements

• Your Direct Experience– Direct experience, knowledge of

the company or vertical

• Overview– Snapshot of team– Goals– Corporate strategy– Business challenges– Internal SWOT analysis– Opportunity pipeline

• Management Overview– Management overview;

organizational charts

• News and Happenings– Events– M&A activity– Competitors

Why Is This Important?

• Your Direct Experience– Highlight strengths and experience in the marketplace

including community involvement

• Overview– Provides a general overview of the company and their

strategy– Lists the Key Account or Deal team– Understanding their challenges is key to developing your

value proposition. Knowing your strengths, weaknesses, opportunities and threats is key to tailoring your strategy.

• Management Overview– Have to know the key players and relationships

• News and Happenings– Stay abreast on current affairs – demonstrate your

knowledge and competency of your customer or clients issues




The Path to ProfitTM

Market Leadership• Achieve a leadership position in the minds of your existing and targeted customers/clients

Sales Mastery• Execute a winning sales strategy for each opportunity you choose to pursue

Flawless Service Delivery• Deliver stunning value to your customers or clients by managing projects, engagement or service precisely

Operations Excellence• Manage all aspects of the business with the same rigor as you apply to your customer or client work

Performance Management• Keep a clear view of the overall performance of your business and the profit or loyalty performance of each customer or client

relationship

Renewal and Reinvention• Stay energized, grow and prosper

6

Michael McLaughlin, founder of MindShare Consulting recommends six organizational competencies that should be developed for every services organization.




An Approach for Customer Onboarding

7

Step 1: Proposal Phase

Step 2: Customer Onboarding

Step 3: Client Relationship Management

Conflict Checks

Opportunity Management

Pre-Project Team BriefingTe

chn

olo

gy

En

able

men

t

Project Team Briefing

Customer or Client Briefing

Schedule Kick-off MeetingR

eso

urc

e C

on

sid

erat

ion

s Consultative and Collaborative

Problem Management

Ongoing Team Communication

Mea

sure

men

t

The objective of the approach below is to provide a recommended framework for services companies looking to improve their customer onboarding process.




Step 1 – Proposal Phase

8



Conflict Checks


chn

olo

gy

En

able

men

t

Successful customer onboarding begins during the sales process.

Key Terms

An internal inquiry to surface the potential for a conflict of interest that may be created by a service line initiating a project at a new client where another service line is already engaged

When to Complete a Conflict Check

A Conflict Check should occur when an opportunity is identified and at the point when the client has an expectation that a services provider could be engaged to assist them. This should occur BEFORE a proposal is submitted.

Conflict Checks Should Be Completed in the Following Situations

1. New Client2. New Project/Existing Client3. New Information/Existing Client





9



Conflict Check


chn

olo

gy

En

able

men

t


Must Live and Die in Salesforce Automation and Financials (Resource Planning)

Regardless of the system, e.g. Salesforce.com, Microsoft Dynamics CRM, Netsuite or even good ole Excel, a process for capturing and tracking opportunities, account management and proposals should be established.

Example: A small but growing professional services firm focused on CRM and Marketing Automation services established a trigger within their salesforce automation system that alerts all Resource Managers when an opportunity reaches 50% probability of close/won.

The event allows for the Resource Managers to assign available resources to deliver the work in their ERP system.





10



Conflict Check


chn

olo

gy

En

able

men

t


Pre-Project Team Briefing

• Typically, things go wrong with clients when a services organization is a “sales machine” but their client delivery is disjointed at best

• When it appears likely a Statement of Work (SOW) is going to be signed, it is important to walk the Delivery Team through the SOW.

• Reviewing the scope of the project: activities, deliverables and milestones is an important way to “ground” the team on expectations – both internal and client

Norming Storming

Performing Forming

I believe adaptive leadership among all members of the Delivery Team is equally important for Successful Customer Onboarding

Understanding Team Dynamics

3 2

14




Step 2 – Customer Onboarding

11





eso

urc

e C

on

sid

erat

ion

s

DimensionsSolution Architect or Engagement Leader

Customer Success Manager

Role Summary

• Understand clients processes and use cases. Work with sales team and other customer staff to develop implementation plans

• Requires deep understanding of specific operations, processes or systems. Accountable to build great client working relationships

Role Description

• Monitor and review project progress

• Onboarding of new customers

• Keep Resource Managers informed of post-sales progress

• Assist in selling to prospective new customers

• Assist Customer Success Managers with project delivery

• Consult with new and existing customers

• Become a recognized industry expert and resource

• Develop custom deliverables

Resource Considerations

Resource Considerations for Customer Onboarding Success.





12





eso

urc

e C

on

sid

erat

ion

s


Once the SOW is signed or the sale is closed, it is imperative to have a formal kickoff meeting with the Delivery Team. Additional participants could include Solution Architects and Customer Success Managers to ensure consistency in communications and expectations.


Equally important is reviewing the SOW with the customer or client prior to having the first kick-off meeting. Using this time to establish a rapport and walking through the SOW sets the tone for the rest of the engagement. Miss this step or not executing this step well will lead to disastrous results.

Communication – internal and external – is another key for success.





13





eso

urc

e C

on

sid

erat

ion

s

First Kick-Off Meeting

All eyes are on your company or firm the moment you step in the door. Whether you have a small, medium or large delivery team, nailing the first kickoff meeting is mission critical.

Preparation and presentation are the keys (all are not applicable :1. Prepare an interview guide2. Develop an issue list and hypothesis trees3. Deconstruction of client’s income statement and

other financial data4. Begin storyboarding final deliverable

Create the right tone in your first kickoff meeting and you will build trust and confidence that will accelerate progress.




Step 3 – Client Relationship Management

14


Consultative and Collaborative

Problem Management


Mea

sure

men

t

What Gets Measured, Gets Done.

Net Promoter Score (NPS) Portfolio or Account Growth

Client Loyalty Measurement Considerations

What: Developed by SatMetrix, Bain & Company and Fred Reicheld, Net Promoter is both a loyalty metric and a discipline for using customer feedback to fuel profitable growth for your business.

How: One Services company created an object in Salesforce.com which pushes client survey questions (6) to clients and the results are fed back into Salesforce.com so everyone can see and manage their client’s perception of loyalty and satisfaction.

What: There are two common measures of growth. Year-on-year percentage growth uses the prior year as a base for expressing percentage change from one year to the next. Compound Annual Growth Rate (CAGR) is a generally accepted metric for average growth rates.

How: A major software provider specializing in supply chain, sourcing and procurement technology implemented portfolio or account growth in their newly organized Customer Management organization to get laser focused on client delivery.

Value ($,#,%)t – Value ($,#,%) t-1Value ($,#,%)t-1




Step 3 – Client Relationship Management

15


Consultative and Collaborative

Problem Management


Mea

sure

men

t

What Gets Measured, Gets Done.

In The Experience Economy, Joseph Pine and James Gilmore advises executives to battle the onslaught of commoditized goods and services by managing the customer’s or client’s total experience: “Businesses that relegate themselves to the diminishing world of goods and services will be rendered irrelevant. To avoid this fate, you must learn to stage a rich compelling experience.”

No two customer or client experiences are the same. Shake loose your customer’s or client’s best ideas and tailor your delivery to fit their specific and unique challenges. In other words, attempt to create memorable, emotional, and positive encounters for the customers or clients you serve.




Customer Onboarding and Social Media Marketing

16

Additional Tips to Keep in Mind

• Listening is foundational for social media marketing. Understand what customers are saying about your brand, products, services and experiences will help you focus your social media marketing efforts.

• Facebook and Twitter are often knee-jerk reactions. Mere presence it not enough; without a sound strategy, these efforts will fail.

• Content is critical and has to be relevant to the client base.

• Resources have to be dedicated to the effort in order to make it successful. Once you’ve entered this arena, the content has to be dynamic and timely.

• Social Media efforts need to be tightly integrated into the overall marketing campaign, it is not a stand alone strategy.

• Understanding your clients or prospects is key to any social media strategy. Knowing where they are congregating on the Web is critical to your social media marketing targeting strategy.

Authenticity and

Transparency

Return On Investment

Brand Identity

Value to Audience

Compliance with

Regulations

Corporate Policies and Procedures

Sound Social Media

Strategy

.Having a Facebook Fan Page does not equate to a social media strategy just as implementing Salesforce.com does not equate to having a salesforce automation strategy.




The Path to ProfitTM

Market Leadership• Achieve a leadership position in the minds of your existing and targeted customers/clients

Sales Mastery• Execute a winning sales strategy for each opportunity you choose to pursue

Flawless Service Delivery• Deliver stunning value to your customers or clients by managing projects, engagement or service precisely

Operations Excellence• Manage all aspects of the business with the same rigor as you apply to your customer or client work

Performance Management• Keep a clear view of the overall performance of your business and the profit or loyalty performance of each customer or client

relationship

Renewal and Reinvention• Stay energized, grow and prosper

17

Michael McLaughlin, founder of MindShare Consulting recommends six organizational competencies that should be developed for every services organization.




Let’s Keep In Touch

18

Art HallDirectorAlvarez & Marsal Business ConsultingMonarch Tower3424 Peachtree Road Suite 1500Atlanta, Georgia 30326Phone: (404) 759-9158Email: [email protected]: @Art_Hall4LinkedIn Profile: Click Here

mailto:[email protected]

http://www.linkedin.com/profile/edit?trk=hb_tab_pro_top

secrets of customer onboarding

Business

mindshare

targeted customersclientssales

companies

social media

creating loyal

ongoing team

service preciselyoperations

social media