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A systematic approach to reducing churn Slide 1 A systematic approach to reducing churn Slide 2 A systematic approach to reducing churn Slide 3 A systematic approach to reducing churn Slide 4 A systematic approach to reducing churn Slide 5 A systematic approach to reducing churn Slide 6 A systematic approach to reducing churn Slide 7 A systematic approach to reducing churn Slide 8 A systematic approach to reducing churn Slide 9 A systematic approach to reducing churn Slide 10 A systematic approach to reducing churn Slide 11 A systematic approach to reducing churn Slide 12 A systematic approach to reducing churn Slide 13 A systematic approach to reducing churn Slide 14 A systematic approach to reducing churn Slide 15 A systematic approach to reducing churn Slide 16 A systematic approach to reducing churn Slide 17 A systematic approach to reducing churn Slide 18 A systematic approach to reducing churn Slide 19 A systematic approach to reducing churn Slide 20 A systematic approach to reducing churn Slide 21 A systematic approach to reducing churn Slide 22 A systematic approach to reducing churn Slide 23 A systematic approach to reducing churn Slide 24 A systematic approach to reducing churn Slide 25 A systematic approach to reducing churn Slide 26 A systematic approach to reducing churn Slide 27 A systematic approach to reducing churn Slide 28 A systematic approach to reducing churn Slide 29 A systematic approach to reducing churn Slide 30 A systematic approach to reducing churn Slide 31 A systematic approach to reducing churn Slide 32 A systematic approach to reducing churn Slide 33
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A systematic approach to reducing churn

Understanding the core drivers of churn and how to reduce them will lead to a dramatic improvement in your business, resulting in happier customers, higher morale, and greater results.

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A systematic approach to reducing churn

  1. 1. A Systematic Approach to Reducing Churn ‘ Anticipate Churn. Reduce Churn. Reignite Growth. D A V I D S T E I NC O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  2. 2. Leaders Fund is a B2B focused VC firm We are currently investing $100M into Series A/B SaaS companies C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  3. 3. David Stein Co-Founder & Managing Partner @ d s t e i n Co-Founder of Leaders Fund 1 2 3 Co-Founder of Workbrain, bought by Infor Scaled to $100M+ in annual revenue in 6 years Co-Founder of Rypple, bought by Salesforce Created category of enterprise social performance $100M fund co-founded w/ Steve Debacco & Gideon Hayden Experience C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  4. 4. REDUCING CHURN A SYSTEMA TIC A PPROA CH C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  5. 5. Core Team Product GA $$$ Raised Customer Acquisition Brand Recognition Your SaaS business is growing fast ü ü ü ü C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  6. 6. C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C . But momentum is slowing Growth Time
  7. 7. C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C . Warning signs foreshadow increased churn Selling Effort Onboarding Effort Product Usage User Growth
  8. 8. Increased churn can lead to a death spiral. . . Business Impact Customer Impact Company Impact Bookings Net MRR LTV:CAC Usage Monthly Users ROI Employee Turnover Economies of Scale Morale C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C . LEADS TO RESULTING IN
  9. 9. Now what? C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  10. 10. How do you sustain growth and avoid dramatic churn? MRR Time Delighted customers Low Churn ? Unhappy customers High Churn C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  11. 11. Focus on and address likely causes: SALES Setting unrealistic expectations. Solution not linked to key buyer priorities ROI is not clear. Too much effort to operate; limited integrations Onboarding and customer success program are too lightweight PRODUCT DESIGN CUSTOMER SUCCESS C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  12. 12. SALES SALES PRODUCTDESIGN CUSTOMER SUCCESS C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  13. 13. Solve a customer problem that matters Clear description of expected impact and ROI 1 2 3 Solution value is high relative to all options Set proper expectations of effort to launch and run C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  14. 14. Best in category Key Solution for Buyer Ease of Use Utility Systems used by your customers YOUR SOLUTION =C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  15. 15. Effort Value 2) Clearly explain operating effort vs. value delivered Perception Time C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  16. 16. Actual Results Expected Results 3) Set realistic expectations on impact and ROI Expectation Gap Perception C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C . Time
  17. 17. PRODUCT DESIGN SALES PRODUCTDESIGN CUSTOMER SUCCESS C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  18. 18. C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C . 3. PLATFORM + DATA Seamless integration with core systems 1. USABILITY Quick to setup and operate, fits existing work flows; no friction 2. INTEGRATIONS Path to System of Record; More usage = more value 5. REPEAT VISITS Product keeps users coming back 4. ANALYTICS Showcase ROI to multiple users Design for customer delight C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  19. 19. EASY INITIAL SETUP INDUSTRY STANDARD UI/UX MINIMAL TRAINING REQUIRED FAST PERFORMANCE Complicated setup causes customers to churn early in adoptionprocess Avoid changing industry standards that customers are used to Intuitiveproduct allowsfor quick adoption/scale throughout organization Slow user experience affects utilityof product 1) Usability drives stickiness and user delight C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  20. 20. C O P Y R I G H T © 2 0 1 7 L E A D E R S F U N D , I N C . Your Solution Avoid: Duplicate entries Additional time/effort Synchronization problems 2) Don’t be an island, integrate with core systems Provide: Rich API Headless operation 1 + 1 = 3 C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  21. 21. C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C . 3) Become a core System of Record (SOR) What is a SOR? Core system for a business function How being a SOR reduces churn? Data tie-in Difficult to transfer data to new solution Business Critical Key place where work gets executed Platform potential Becomes a hub where other systems connect
  22. 22. Example - Zaius (B2C Marketing Platform) 4) Showcase impact on business, for multiple roles C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  23. 23. PRODUCT STICKINESS 5) Design supports continuous usage Users quickly complete core tasks that drive their jobs 1 3 4 User notifications and updates drive engagement Users easily achieve their goals with minimum steps 2 Users can access from device of their choice C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  24. 24. CUSTOMER SUCCESS PRODUCT PRODUCTDESIGN CUSTOMER SUCCESS C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  25. 25. Customer Success Asking for a renewal once a year = Customer Success is an ongoing area of focus C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  26. 26. 2. COMMUNICATIONS1. ONBOARDING 3. ENSURE SUCCESS4. EXPAND VALUE Establish a Customer Success playbook. . . C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  27. 27. Users can be activated quickly User training is minimal Complete integrations within 30 days Initial value is realized within 30 days 1) Gain momentum with rapid onboarding C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  28. 28. How many clients can a customer success manager manage? How often does customer success check up on customer? Which communication method is used? Is customer aware of the value that customer success can provide? 2) Build communication plan with continuous checkpoints C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  29. 29. § Integration suggestions § Proactive issue notification § Usage suggestions § Product training PROVIDE VALUE § Usability issues § Feature requests § Integration issues § Price concerns LEARN 3) Lead your customer to success, solve their big problem C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  30. 30. New capabilities enhance current solution Lead to deeper engagement/usage Value delivered > effort to use 4) Increase value through an expanded offering C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  31. 31. SALES PRODUCT DESIGN CUSTOMER SUCCESS In summary, focusing on these key areas. . . C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  32. 32. Leads to customer delight and accelerated growth Business Impact Customer Impact Company Impact Bookings Net MRR LTV:CAC Usage Monthly Users ROI Employee Turnover Economies of Scale Morale C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  33. 33. Thank you C O P Y R I G H T © 2 0 1 8 L E A D E R S F U N D , I N C .
  • MaheBayireddi

    Dec. 30, 2020
  • MuniBoga

    Feb. 9, 2018
  • RobertLewis132

    Feb. 7, 2018
  • JohnYates25

    Feb. 7, 2018

Understanding the core drivers of churn and how to reduce them will lead to a dramatic improvement in your business, resulting in happier customers, higher morale, and greater results.

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