Every customer success team needs a process to escalate customer risks to leadership. The first step in managing risk is to define the types of issues that tend to arise. At Gainsight, we have found 8 key signals to identify that a customer is at risk.
https://lh6.googleusercontent.com/HA0LiEsx2h9BxtahyFLwXgXIOLMwC4rUoYIrN5fIk3IbZgBaOWBblfpKIZsb45Z3ysUy_4CdUihStFYaUUIAFTXaUB6BF8LyRrM_D1CRGd3Ol2_85v4sutkRSqoBrHce6inARUzx
We created CTAs for each of these risk areas, to help the CSM know when s/he should get involved. In most cases, the CTAs are automated according to the definitions above. In others, the CTAs are created manually by the CSM.
For more information on this topic, including details of the “owners” of each risk, click here to view my full blog post.
[i]We’d love to hear from you - what framework do you use to manage customer risks?
Best Practices for Managing Customer Risks
For more information on Gainsight’s Risk Management Framework, you can also watch this recording and post any questions below!
Thank you Allison & Elena for putting
this very important initiative on the forefront. In my experience there is no
single model that works for all entities / organizations / initiatives. With
that being said, I do believe Gainsight has done an excellent job of
establishing the Risk Management Framework (RMF) as a foundry building block.
Risk Mitigation is one of the most important Key Performance Indicators (KPI's)
that businesses measure their success upon. Risk is usually coupled with TCO /
ROI / EVA and Time2Mkt (T2M) and generally looks at the ability for the
business to meet their Strategic Goals & Objectives relational to growing /
scaling the business.
Much of Business Measurement begins with executing / applying measures against
systems. A system (defined by Input(s), Function(s) & Output(s)) is only as
efficient or productive as the underlying processes, procedures, frameworks and
methodologies that enable them. Thus, I believe every organization needs to
think in Systematic terms and in doing so will gravitate to the necessary People, Process & Technology tools to get them from Point A - Point
B and beyond along the continuum.
Additionally, it's imperative for companies to understand that one of those
very important People, Process & Technology Tools is a Maturity Model. A Maturity Model provides
companies a chance to assess their Current State relational to their ability to
execute across a subset of People, Process & Technology domains, Thus, a company that is very immature across
those metrics should take their time in trying to over execute or they'll pay
the price when it comes time to scale. Conversely, the most productive,
operationally efficient and scale ready companies are the ones that have mapped
out their Journey from a defined Current State > Targeted State > Future
State.
Ultimately a Maturity Model comes down to Scale and how do companies get to a
place of Balanced Scale...by throwing People at the problem, or fixing it by
implementing too advance Processes or over spending on Technology in a poor CAPEX or ineffective OPEX
mannerism. The right answer will vary upon the situation, but the optimized
model is a Balanced one.
Additionally, it's important for companies to understand what business model
they are driving. If your company provides its customers with an On-Prem
solution vs. 100% SaaS Solution or a Hybrid Model. The Go2Mkt model will
differ, the Maturity Model used to assess and drive behavior will look
different and the Customer Journey will ultimately feel / be applied
differently. Different isn’t a bad thing, it's just going to be different based
upon the Use Case.
In closing, I don't believe there is a single best model that fits all Use
Cases, however, for companies that are looking to Scale in an efficient /
predictable manner, it would behoove those interested parties to investigate
using the Gainsight RMF and other industry accepted Frameworks &
Methodologies to drive a Balanced model and in doing so will ensure Risk Mitigation is always top of mind.
this very important initiative on the forefront. In my experience there is no
single model that works for all entities / organizations / initiatives. With
that being said, I do believe Gainsight has done an excellent job of
establishing the Risk Management Framework (RMF) as a foundry building block.
Risk Mitigation is one of the most important Key Performance Indicators (KPI's)
that businesses measure their success upon. Risk is usually coupled with TCO /
ROI / EVA and Time2Mkt (T2M) and generally looks at the ability for the
business to meet their Strategic Goals & Objectives relational to growing /
scaling the business.
Much of Business Measurement begins with executing / applying measures against
systems. A system (defined by Input(s), Function(s) & Output(s)) is only as
efficient or productive as the underlying processes, procedures, frameworks and
methodologies that enable them. Thus, I believe every organization needs to
think in Systematic terms and in doing so will gravitate to the necessary People, Process & Technology tools to get them from Point A - Point
B and beyond along the continuum.
Additionally, it's imperative for companies to understand that one of those
very important People, Process & Technology Tools is a Maturity Model. A Maturity Model provides
companies a chance to assess their Current State relational to their ability to
execute across a subset of People, Process & Technology domains, Thus, a company that is very immature across
those metrics should take their time in trying to over execute or they'll pay
the price when it comes time to scale. Conversely, the most productive,
operationally efficient and scale ready companies are the ones that have mapped
out their Journey from a defined Current State > Targeted State > Future
State.
Ultimately a Maturity Model comes down to Scale and how do companies get to a
place of Balanced Scale...by throwing People at the problem, or fixing it by
implementing too advance Processes or over spending on Technology in a poor CAPEX or ineffective OPEX
mannerism. The right answer will vary upon the situation, but the optimized
model is a Balanced one.
Additionally, it's important for companies to understand what business model
they are driving. If your company provides its customers with an On-Prem
solution vs. 100% SaaS Solution or a Hybrid Model. The Go2Mkt model will
differ, the Maturity Model used to assess and drive behavior will look
different and the Customer Journey will ultimately feel / be applied
differently. Different isn’t a bad thing, it's just going to be different based
upon the Use Case.
In closing, I don't believe there is a single best model that fits all Use
Cases, however, for companies that are looking to Scale in an efficient /
predictable manner, it would behoove those interested parties to investigate
using the Gainsight RMF and other industry accepted Frameworks &
Methodologies to drive a Balanced model and in doing so will ensure Risk Mitigation is always top of mind.
MK,
We are running a contest on best practices and I've granted you 130 points for your reply (30 for the reply + 100 bonus points for thoughtfulness)! You are on right path to win a free CSU pass. Keep it up!
Best,
Elena
We are running a contest on best practices and I've granted you 130 points for your reply (30 for the reply + 100 bonus points for thoughtfulness)! You are on right path to win a free CSU pass. Keep it up!
Best,
Elena
Elena,
Thank you and I could use all of the admin training I can get 🙂 Take care.
Mark
Thank you and I could use all of the admin training I can get 🙂 Take care.
Mark
Allison - Thanks for the information (blog)
We too have way to handle risk. In a nutshell, the CSMs and our "system" help us manage risk.
Highlights:
- the CSMs have the ability to mark any account "at Risk" when they feel its appropriate (subjective). In addition, numerous CS team leaders and the AE are notified immediately when an account is marked "at Risk." In addition, the support team is "visually" aware of the account being "at Risk" of any cases coming into the system for that account. We also auto update chatter on the account when it moves to "at Risk" and the CSM marks the reason(s) for turning the account "at Risk". Once the account is marked "at Risk", then this account is reviewed in their 1-1 meetings with their managers. Within our CRM system, we have some "visual" indications to where its super obvious to any and all CRM system users when an account is "at Risk".
- Secondly, we have our "CSM system" provide health scoring on every account from an objective perspective. We have instituted "Health Reviews" with VP leaders of each department; Prod Mgmt, Support, Regional Sales Team, and Channel Partner Leader(s). In the health review meetings, we use dashboard to highlight the accounts that are "at Risk" subjectively AND objectively due to a health measure for that department - similar to your health risks. For example, we have an objective support measure that has numerous support related factors that make up the objective support measure. During the support health review, we will review those accounts with an objective support measure below xxx value. And we will review any accounts "at Risk" (subjectively) because of a support reason. Between the CSM leader(s) and the Department leaders, actions are assigned and tracked to assist the customers and positively affect the subjective and objective scoring.
Summary: we use our CSMs, our Department leaders, our "CSM system", our CRM system, along with some processes to manage customer risk.
We too have way to handle risk. In a nutshell, the CSMs and our "system" help us manage risk.
Highlights:
- the CSMs have the ability to mark any account "at Risk" when they feel its appropriate (subjective). In addition, numerous CS team leaders and the AE are notified immediately when an account is marked "at Risk." In addition, the support team is "visually" aware of the account being "at Risk" of any cases coming into the system for that account. We also auto update chatter on the account when it moves to "at Risk" and the CSM marks the reason(s) for turning the account "at Risk". Once the account is marked "at Risk", then this account is reviewed in their 1-1 meetings with their managers. Within our CRM system, we have some "visual" indications to where its super obvious to any and all CRM system users when an account is "at Risk".
- Secondly, we have our "CSM system" provide health scoring on every account from an objective perspective. We have instituted "Health Reviews" with VP leaders of each department; Prod Mgmt, Support, Regional Sales Team, and Channel Partner Leader(s). In the health review meetings, we use dashboard to highlight the accounts that are "at Risk" subjectively AND objectively due to a health measure for that department - similar to your health risks. For example, we have an objective support measure that has numerous support related factors that make up the objective support measure. During the support health review, we will review those accounts with an objective support measure below xxx value. And we will review any accounts "at Risk" (subjectively) because of a support reason. Between the CSM leader(s) and the Department leaders, actions are assigned and tracked to assist the customers and positively affect the subjective and objective scoring.
Summary: we use our CSMs, our Department leaders, our "CSM system", our CRM system, along with some processes to manage customer risk.
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