Strategies for Customer Value-Led Growth

I've helped launch hundreds of products. The sweet spot between customer value and business value is my holy grail. Here's what I've learned about finding it👇 1) Obsess over Key Workflows Identify where your product can make the most significant impact for users. Align your business case around these high-potential areas. 2) Pricing and Packaging Base these on customer willingness-to-pay and expansion opportunities. Forget internal cost models. 3) Double Down on Loyalty Focus on product experiences that drive loyalty, retention, and brand affinity. This aligns with recurring business value. 4) Be Ruthless Say no to one-off feature requests and niche use cases. Prioritize based on total addressable value. 5) Structure Teams Organize teams around delivering measurable customer and business outcomes, not outputs. Connect work to metrics. The most successful products find a way to balance user love and commercial return. It's not easy, but when you nail it, magic happens! This delicate balance is a product leader’s toughest, but most rewarding job.

Ideal Customer Profile (ICP) and Ideal Customer Behavior (ICB) : We know how much SaaS companies obsess over ICP (Ideal Customer Profile) in GTM motion (and rightly so). ICP, when built out well has a big correlation (not causation) to probability of a land. But in Customer-Led-Growth world, is that correlation enough for a large expansion ? In my experience with driving NRR, a bigger factor in large expansion of customer base is ICB (Ideal Customer Behavior). ICB is a set of behaviors that most successful customers demonstrate, that leads them to outsized adoption and success. This is not mere correlation, there is an element of causation. ICP is a "Promise" or an "Assumption" that customer with these characteristics are the ideal fit for a software. ICB, on the other hand is "Real", these are the behaviors that the successful customers demonstrate. ICB is a much more accurate predictor of Retention and Expansion. And CS has a huge role to play in codifying and aligning the whole organization to ICB. Here are three immediate things that CS teams can do drive success using ICB - 1. Create a prescriptive "Happy Path" based on ICB - All customers want to know what's their happy path to success with your technology. ICB is the proven way to built it out, as it is based on evidence from current most successful customers. This also significantly increases predictability of success across customer base     2. Align incentives of all teams to ICB - If we know that a certain set of behaviors are predictors of outsized success and expansion, every team should be singing the same tune (not only CS). This includes PS, CS, Partners, Training, Customer Marketing - everyone incentivized to keep the existing customers in the happy path. e.g. If we know, all customers who have a dedicated Enterprise Architect have outsized success, then PS should try to help educate the same, training should create a training for that role, partners should pitch services of an Enterprise Architect     3. Use ICB Analytics for post-sales GTM effort - ICB is an amazing predictor of a large expansion or large risk. Analytics on ICB can help Sales and CS align better on expansion efforts, also it can help create Early Warning System for large churn. e.g. If there are 5 behaviors that represent ICB and all 5 are "Green" for a set of customers, these should be primary focus for expansion conversations. "Who they are" is a great predictor to land, but "How they behave" is the critical driver for expand. In a CLG world, landing isn't enough.

Welcome to the final installment of our series on the US industrial and manufacturing landscape. Throughout this journey, we've explored the dynamic changes reshaping the sector and discussed strategies for excellence. 1. Understand the New Customer Landscape: The industrial and manufacturing sector's customers are evolving. Today's buyers seek not just products, but solutions that align with their specific challenges. Dive deep into your customers' pain points, aspirations, and buying behavior to tailor your offerings. 2. Co-Creation for Value: Involve customers in the innovation process. Co-create solutions that directly address their needs. By including them in the ideation and development phases, you ensure the final product resonates. 3. Seamless User Experience: Design an experience that delights. Whether it's your product's user interface or the ease of doing business with your company, a seamless experience builds loyalty and encourages repeat business. 4. Data-Driven Personalization: Leverage data to personalize interactions. Tailor your offerings and communication based on customer preferences and behaviors. This level of personalization fosters stronger connections. 5. Proactive Problem Solving: Anticipate customer needs and provide solutions before they ask. Be proactive in addressing potential challenges, showcasing your commitment to their success. 6. Value-Driven Communication: Shift from product-centric communication to value-driven conversations. Showcase how your offerings solve problems and contribute to your customers' growth. 7. Collaborative Partnerships: Forge partnerships that extend beyond transactions. Position yourself as a collaborator invested in your customers' long-term success. Jointly tackle challenges and celebrate victories. 8. Feedback as Fuel: Customer feedback is a goldmine of insights. Actively seek feedback and apply it to refine your offerings. Customers appreciate being heard and seeing their input incorporated. 9. Agility in Adapting: Be agile in responding to customer feedback and market shifts. Flexibility in adapting your offerings demonstrates your commitment to meeting evolving needs. 10. Long-Term Relationship Building: Prioritize long-term relationships over short-term gains. By consistently delivering value and demonstrating your dedication, you establish trust that leads to lasting partnerships. In conclusion, the path to growth in the industrial and manufacturing landscape is paved with customer-centric strategies. As you navigate these transformative times, remember that understanding your customers deeply, co-creating value, offering seamless experiences, and embracing data-driven personalization can set you apart in a competitive market. Thank you for joining me on this journey of exploration and insight.

Looking for growth in your market? Start by redefining the core market you are targeting. The key is to shift your perspective from a product-centric to a customer-centric view, using the Jobs-to-be-Done Theory. Instead of defining your market by product categories or verticals, define your market as a group of people trying to get a job done. By focusing on the entire job-to-be-done, rather than just the part your product currently addresses, you can uncover opportunities to get more of the job done and grow within your core market. Ask yourself, "What is the entire job our customers are trying to get done?" Then, explore how you can expand your product by addressing more of the job. This approach allows you to pursue natural growth in a market where you already have an established presence without the added risk of investing in a completely new space. Don't let a narrow definition of your market limit your potential. Embrace a Jobs-to-be-Done approach and unlock the growth that lies within your core.

Are you generating enough value for users net of the value to your company? Business value can only be created when you create so much value for users, that you can “tax” that value and take some for yourself as a business. If you don’t create any value for your users, then you can’t create value for your business. Ed Biden explains how to solve this in this week's guest post: Whilst there are many ways to understand what your users will value, two techniques in particular are incredibly valuable, especially if you’re working on a tight timeframe: 1. Jobs To Be Done 2. Customer Journey Mapping 𝟭. 𝗝𝗼𝗯𝘀 𝗧𝗼 𝗕𝗲 𝗗𝗼𝗻𝗲 (𝗝𝗧𝗕𝗗) “People don’t simply buy products or services, they ‘hire’ them to make progress in specific circumstances.”  – Clayton Christensen The core JTBD concept is that rather than buying a product for its features, customers “hire” a product to get a job done for them … and will ”fire” it for a better solution just as quickly. In practice, JTBD provides a series of lenses for understanding what your customers want, what progress looks like, and what they’ll pay for. This is a powerful way of understanding your users, because their needs are stable and it forces you to think from a user-centric point of view. This allows you to think about more radical solutions, and really focus on where you’re creating value. To use Jobs To Be Done to understand your customers, think through five key steps: 1. Use case – what is the outcome that people want? 2. Alternatives – what solutions are people using now? 3. Progress – where are people blocked? What does a better solution look like? 4. Value Proposition – why would they use your product over the alternatives? 5. Price – what would a customer pay for progress against this problem? 𝟮. 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗝𝗼𝘂𝗿𝗻𝗲𝘆 𝗠𝗮𝗽𝗽𝗶𝗻𝗴 Customer journey mapping is an effective way to visualize your customer’s experience as they try to reach one of their goals. In basic terms, a customer journey map breaks the user journey down into steps, and then for each step describes what touchpoints the customer has with your product, and how this makes them feel. The touch points are any interaction that the customer has with your company as they go through this flow: • Website and app screens • Notifications and emails • Customer service calls • Account management / sales touch points • Physically interacting with goods (e.g. Amazon), services (e.g. Airbnb) or hardware (e.g. Lime) Users’ feelings can be visualized by noting down: • What they like or feel good about at this step • What they dislike, find frustrating or confusing at this step • How they feel overall By mapping the customer’s subjective experience to the nuts and bolts of what’s going on, and then laying this out in a visual way, you can easily see where you can have the most impact, and align stakeholders on the critical problems to solve.

I believe businesses exists long term to deliver customer value. Not to build a perfect process or a clean CRM. While those does help, Let's focus on the things that really matters- deliver value to your customers. And if you never measure it, you never know if you improved. The easiest step is to try Theysaid CPV, adding a CPV question besides your normal NPS or CSAT question. As a mad woman who is obsessed with customer value, sharing my understanding of 5 levels of measuring customer value. Level 1 : Usage metrics. ✅ Product usage ✅ Time in App ✅ Seats bought vs Used level 2: Standard customer metrics ✅ Time to value ✅ Health Scores ✅ Ticket Resolution ✅ CSAT ✅ NPS Level 3: Measure value delivered ✅ TheySaid CPV (Customer Perceived Value) ✅ Each department records customers’ desired problems to be solved ✅ Customer advisory board program ✅ Customer interview program (including win / loss analysis) Level 4: Embedded ✅ Metrics for customer-value delivered is a company goal and owned by a C-Level Executive ✅ Customer-value delivered is measured throughout their lifecycle via a cross-departmental program (for example TheySaid Pulse Program) ✅ Empower team members to take action using customer data ✅ Real time actions on customer problems Level 5: Customer-led growth ✅ The CEO builds the entire company on delivering customer value  ✅ Customers receive consistent experiences throughout their journey, not hit or miss depending on departments ✅ Ideal Customer Profiles come from customers that get the most value Marketing content is driven by customer needs ✅ Potential customers are qualified with use cases that will deliver the most value ✅ Product roadmap driven by quantified customer requests #customervalue #CPV #CustomerPerceivedValue #nps #netpromoterscore #csat

In 2024, if you're pinning your hopes for growth exclusively on new ARR, you're missing a MAJOR opportunity. Instead, it's time to recognize: ➡ The sale doesn't end at Closed Won -- if anything, it's just getting started This is the drum Pavilion, Winning by Design and GTM Partners have been beating via The GTM Consortium, and it's underscored in Insight Partners newly-released 2023 Post-Sales GTM Report (link in comments 👇 ). TL;DR - The companies that nail their retention and expansion strategies will be the winners in 2024. And they'll do it by: - Stopping selling to customers they are poor fit and thus will churn and not pay CAC back - Engineering value, not features (as 🐶 Jacco van der Kooij likes to say, "recurring revenue comes from recurring impact") - Using data to inform a clear customer journey and identifying expansion opportunities - Ditching the silos and shifting to a unified, cross-functional GTM approach centered around the customer - Documenting internal processes to build a foundation for scale - Improving rigor around GRR and logo retention - Making it easy for customers to buy and use your products - Monetizing value added services on top of software products to drive higher margins - Tracking unit economics and using this data to sharpen the focus on high margin customers - Ensuring accountability for retention is shared across teams, and getting ahead of churn by tracking leading indicators So, as you think about your growth strategies for 2024, the question is, have you devoted adequate resources to driving retention and expansion? #gtmstrategy #retentionstrategies #kathleenhq

In a world where closing new deals is comparable to finding a Coca-Cola in the desert... One thing is crystal clear: CSMs bear the responsibility of growing businesses in 2024. Focusing on retention is no longer enough. Identifying expansion, cross-sell, and upsell opportunities isn't just a strategic move; it's a survival tactic. So what can CS leaders do to help their teams thrive in these challenging market conditions? 1. Upskill with precision Invest in your CS team. Equip them to ask strategic questions, unveiling underlying needs. Explore programs like Bob London's Customer Discovery for a comprehensive approach. Maintain well-documented lists of questions, outcomes, and challenges per product. 2. Amplify active listening Double down on active listening. Cultivate a culture where your team truly understands customers' concerns. Share best practices—talk less, focus completely, and lead with empathy. 3. Training and enablement Empower your team with knowledge. Encourage participation in product sessions, and collaborate with marketing teams for resources. When well-versed, guiding customers toward additional value becomes natural. 4. Incentives aligned with company goals Keep your team motivated. Set clear, challenging goals. Align achievements with broader business objectives. Design incentive programs rewarding quality efforts. Build transparent reporting dashboards to help CSMs track their progress, reinforcing the connection between individual efforts and company goals. 5. Leverage data analytics and AI Dive into data analytics. Build dashboards to uncover customer insights. Target efforts with personalized offers at the right time. Harnessing the power of data turns potential into reality. 6. Remove friction from the customer journey Exceptional customer experience is key. Identify friction points, deep dive into feedback, and proactively address concerns. This is our chance to showcase the real power of Customer Success. Are you ready? This is going to be an exciting year. Here's to a year of growth, collaboration, and unparalleled expansion. 🚀 --- If you liked this content, you might enjoy reading my newsletter 📧. Link to sign up in the comments section below or the featured posts in my profile.

Think investing in Customer Success means piling on more CSMs, tools, and operations? Nah. ➡ as leaders this can appear to be the easiest path. Or maybe you're thinking: Add more tools to make our CSMs more efficient or to help us scale as we grow. ➡ Meanwhile, your CSMs are silently suffering because the new tool doubled their work and still isn’t solving the problems they’ve been screaming about. Instead of immediately advocating for an additional CSM, I took a different route. I pushed for and supported the need for more resources on our engineering and product team. Why? Because these teams are key to our ability to drive growth and support our CSMs in ways that traditional CS headcount increases couldn't. In fact, this route pulled our CSMs out of the weeds and gave them the space to laser-focus on business value, customer-led growth, and retention. What’s even cooler, our internal teams are now collaborating on automation and tools that directly address our team's fundamental needs. What’s cooler than cool? We’re all invested in building and understanding the needs of our customers! Want sustainable growth? Consider starting by identifying the right resources & skill sets across the org that will have the biggest impact on your company goals. I'd love to hear more ideas. What have you done to build sustainable growth? #customersuccess #customercentricity #leadership

My biggest lesson building Qualtrics to an $8 Billion valuation: Focus on your customers above all else. Product teams often get caught up in daily firefighting. And as a result? They lose sight of the big picture. A year goes by and they realize very little has changed. The most successful teams have a culture of customer obsession. Every innovation starts with why? What problem does this solve? And the team finds a way to solve customer problems every sprint or cycle. That's what it takes to win. The hard truth? Your product is only as good as the customer needs it fulfills. Everything else is just noise. How to keep your product team customer-centric: → Find a way to solve new customer problems every sprint or cycle → Align your teams around clear, customer-centric goals → Create a culture of customer obsession → Start every innovation with why? Remember, your job isn't to build features. It's to solve problems and create value for your customers.