1、science-backed conversation skills for customer successbu ildin g s t ro n ger customer relationships2Building Stronger Customer Relationshipsu n re a l ize dpotentialEvery part of the enterprise plays an important role in driving growth.But,considering 70-80 percent of a companys revenue comes from

2、 existing customers,the customer success team has an outsized role as an architect for commercial growth.Sadly,most organizations fail to realize that growth potential.Companies are quick to invest in enabling their sales reps to articulate value to new prospects.But customer success gets short shri

3、ft in terms of training or enablement to support ongoing commercial conversations with those same buyers.In fact,nearly half the B2B companies we surveyed invest less than 10 percent of their marketing budgets in messaging and content for critical customer success situations like renewals and expans

4、ion.And fewer than half develop customized content for these conversations.The majority re-use the same messages and content across marketing,sales,and customer success,regardless of whether theyre talking to a prospect or an existing customer.Thats a problem,given that existing customers buying mot

5、ivations are 180 degrees different from those of new prospects.In this e-book,youll learn why existing customers make the decisions they make,how your customer success managers can articulate meaningful value,and what it takes to fully realize the potential of customer success as a growth engine for

6、 your organization.Nicci Nesmith Hammerel EVP of Customer Success and Chief of StaffCorporate Visions2Building Stronger Customer Relationships3Building Stronger Customer Relationshipst h e m a la d y o fmisalignmentA recent industry survey from software provider Totango uncovered a surprising statis

7、tic:60 percent of companies have lost accounts because they were unaware their key stakeholders and influencers were not aligned or had left the organization.Most customer success managers get so focused on adoption,utilization,satisfaction,and problem resolution,they lose track of the metrics and g

8、oals that decision makers actually care about.Managing these foundational elements of the customer relationship is important,but they shouldnt come at the expense of helping your customers hit their higher-level strategic goals.Your customers executive decision makers approved the expense to work wi

9、th you because your sales team promised them valuetop-level value that would propel them toward their companys strategic goals.But if you dont show them how staying with you,and potentially buying more from you,will help them meet those goals,theyre more vulnerable to your competitors disruptive mes

10、sages.Thankfully,you have a secret weapon to support your customer conversations.Its called your“incumbent advantage,”and when you use it properly,youll have a significant edge in keeping and growing your customer relationships.avoid t he c ommerc ia l mes s a g ing voi dIf youre not bringing new in

11、sights and opportunities to your customers regularly,the relationship could get lost in the commercial messaging void.Learn more in this videoRob PerrilleonSVP of Delivery Services4Building Stronger Customer Relationshipsle a n in t o yo urincumbent advantageEvery customer-vendor relationship boils

12、down to value over time.After your customer signs the deal,they should start immediately realizing value in terms of business impact and results.Your customer should be loath to give up that progress by making a change at the wrong time.They invested time,money,and political capital to implement you

13、r solution.In their mind,these are sunk costsinvestments your customer made that theyll never have to make again,provided they stick with you.So,when a competitor shows up promising additional value,its only potential value.Your competitors solution is still unproven,the cost and impact are both unk

14、nown,and change comes at the risk of losing the initial progress,as well as any future value,from your solution.Thats a lot of uncertainty compared with your documented value and the customers sunk cost.And that uncertainty is what gives you the incumbent advantage.wha t is t he inc umb ent a d va n

15、t a g e?Just like in politics,it can be very challenging to displace an incumbent because of all the advantages they have.Because youre the customers status quo,you can leverage your incumbent status in your conversations with existing customers.Learn more in this videoDoug HuttonSVP of Productscomm

16、ercial messaging voidIn this e-book,youll learn how to lean into your incumbent advantage by aligning your value with the right metrics early,maintaining executive attention,and facilitating commercial conversations to effectively keep and grow your customer relationships.CREATE SUCCESSELEVATE SUCCE

17、SSEXPAND SUCCESSc lo s e t h eAfter your customer signs the deal,they need to see the value of their investment.That means you need to manage the change and align your value with the right metrics early in the relationship.Create Successc lo s e t h e c o m m e rc ia l m e s s a g in g vo id7Buildin

18、g Stronger Customer Relationshipsstatus quo biasThe psychology of a prospect(who currently has an incumbent vendor youre trying to displace)is fundamentally different from the psychology of a customer(when youre the incumbent trying to protect or expand your incumbency).And its all because of a psyc

19、hological concept called“Status Quo Bias.”Psychological studies have shown that when faced with a decision,most people tend to stick with their status quo.People naturally view change as costly and unsafe.If the perceived benefits of a new solution dont outweigh the perceived costs of changing their

20、 status quo,people tend to resist taking action.They prefer instead to continue on the path theyre already oneven if the alternative is objectively better.How does Status Quo Bias affect your onboarding conversations?When youre onboarding a new customer,the team of people you work with to implement

21、your solution are probably not the executives who made the decision to change from the status quo and buy.Your contacts may still be pre-disposed to resist change,which means your role at this stage is less about project management and more about change management.Inertia is powerful.So how do you h

22、elp your customers gain momentum quickly and make inertia work in your favor?In his study The Psychology of Doing Nothing,research psychologist Christopher Anderson details four causes of Status Quo Bias.t he four c a us es of s t a t us q uo b i a s1.Preference Stability If a customers preferences

23、change less often,or remain static,theyre more likely to stick with what theyre doing today.Conversely,if you destabilize their preferences,you increase their openness to change.2.Anticipated Regret/Blame Humans chafe at the possibility of regret.It elicits all sorts of negative anticipatory emotion

24、s such as fear,dread,and anxiety.While the consequences of actual regret will play out in the future,the emotional experience of regret takes place in the present.3.Cost of Action/Change Changing the status quo often involves a cost of some kindthe transactional costs associated with the change,or t

25、he transitional resourcing costs of changing to something new.Change seems risky or costly,while sticking with the status quo registers as either neutral or even beneficialeven in the face of contrary evidence.4.Selection Difficulty When prospects and customers are overwhelmed with too many options

26、and too little contrast,everything seems to look alike.This amplifies their tendency to view change as complex and cumbersome.Tim RiestererChief Strategy Officer8Building Stronger Customer Relationshipsm a n a g e t h echangeBehavioral research from B2B DecisionLabs found that the most effective app

27、roach for acquiring new prospects is a Why Change message.This message is designed to disrupt Status Quo Bias and motivate prospects to change by introducing what we call“Unconsidered Needs”challenges,shortcomings,or missed opportunities that the prospect doesnt yet know about but are holding them b

28、ack from their most important business goals.When delivered effectively,the Why Change sales story eventually leads prospects to make a deliberate decision to abandon the status quo in favor of your solution.a c us t omer unmooredYour customer decided to raise anchor and change from their status quo

29、.But they havent yet attached themselves to you.Your implementation will likely take time,which means your customer will incur costs up front while value trails.Your solution might even need to coexist with the previous solution for some period,which increases your risk.So much of this early-stage c

30、ementing of the status quo falls on the shoulders of customer success.But theres plenty of room for marketing and sales to pitch in.Involving sales in these early customer success interactions can help reinforce the Why Change proposition that won the initial deal.Marketing can shift its messaging f

31、rom disrupting to reinforcing,catching auxiliary customer contacts that could drive broader sentiment and advocacy across the organization.A unified front can accelerate your solution as the new status quomaking Status Quo Bias work for you much faster than your legacy competitor can possibly hold o

32、n.Tim RiestererChief Strategy Officer1.Disrupt the status quo by introducing unmet,undervalued,or unknown gaps and opportunities within their business.2.Highlight the cost and risk of sticking with their current solution versus changing to a new solution.3.Create urgency to change by showing a stark

33、 contrast between their current approach and the improved new way of doing things.Unconsidered needFlawed current approachImproved new wayThe Why Change message9Building Stronger Customer Relationshipsp l a n t h epartnershipEven after your customer makes the decision to change and youve won the dea

34、l,youre not automatically their status quo.You still need to earn their trust and loyalty by delivering on the promise your sellers made in the Why Change conversation.Thats why its vital that customer success teams get involved in partnership planning as early as possible in the relationshipeven be

35、fore the contract is signed.If your customer success managers understand why the customer decided to change in the first place,they can plan the partnership more effectively around those executive-level goals and metrics.Your ability to create profitable outcomes depends on how well you navigate the

36、se partnership planning conversations.These moments help define your customers perception of your value and cement the relationship.To effectively plan the partnership,consider the concept of“Pivotal Agreements.”how t o us e p i vot a l a g reement sPivotal Agreements are value-based exchanges that

37、you can use to speed up implementation and advance the customer partnership.Learn more in this videoDoug HuttonSVP of ProductsYour customer chose you because they believed you would make a meaningful contribution toward their strategic business goals.To protect and defend the relationship,you need t

38、o keep executive stakeholders engaged and informed throughout the relationship.Elevate Success c lo s e t h e c o m m e rc ia l m e s s a g in g vo id11Building Stronger Customer Relationshipsovercomeyo ur fe a r o f h e i g h t sMost companies arent satisfied with their ability to articulate value

39、to senior executives.67 percent say theyre underperforming at getting executive-level prospects to buy now rather than later.Only 39 percent are confident in their ability to build a meaningful business and financial case to justify a decision.These are significant issues,considering that 80 percent

40、 of deals will require a VP or higher-level signoff.And these issues dont just affect sales.Unless executives understand the value youre delivering to support the strategy,the relationship remains vulnerable to outside influences.If you cant get senior-level stakeholders to attend your business revi

41、ews,theyll be less likely to sign off on a renewal.Or worseyoull lose the relationship entirely.Executives are barraged by disruptive messages from your competitors,industry analysts,and even well-meaning partner organizations.So you need to build a protective barrier by speaking to them at their le

42、vel,on their terms.wrong met r i c s or wrong p er s on?In conference rooms all over the globe,customer success teams are conducting business reviews right now,outlining the utilization of your product,hours billed,what features have been adopted,etc.These metrics prove your busy-ness,but they arent

43、 results.Theyre leading indicators for larger revenue,expense,cash,or balance sheet goals.Account managers and customer success managers often dont measure or report on strategic business outcomes,nor do they connect the dots between leading indicators and the customers corporate goals.Sometimes you

44、r conversations merely reflect what your contacts want to talk about.But if the team youre meeting with for quarterly business reviews doesnt care about or know their business goals,you can be sure youre not talking to the ultimate decision makers.And that means your relationship is totally vulnerab

45、le to competitors who are.Tim RiestererChief Strategy Officer12Building Stronger Customer Relationshipsg a in yo u rcustomersp e r s p e c t iveWhen youre sitting across from a CXO,you only get one shot to pique their interest.If you dont bring enough knowledge and insight to the conversation,theyll

46、 tune out,and youll lose your executive access.To hold executive attention,its not enough to be competent in your own business.If you want to win over C-suite buyers,you need to show that your head is inside their businessnot just your solution.To make it happen,you need gain your customers perspect

47、ive.1.Highlight external factors External factorse.g.,regulatory and technology changes,tariffs,interest rates,oil prices,and geopoliticsare out of the control of your C-level decision maker.Theyre literally what keep executives awake at night(but please,dont ever ask any executive that question).2.

48、Identify business initiatives Your customer establishes business initiatives at the corporate level in response to opportunities and threats presented by external factors and industry trends.These are the major drivers of the company.3.Share the business change The business change creates a vision o

49、f where you want to lead the customer.It describes how your customer is operating today and contrasts their current approach with how they will operate differently by implementing your solution.4.Quantify financial metrics Financial metrics are what customers will use to justify investment.Even at a

50、n executive level,people make decisions subconsciously.Then they use logic and reason to justify the decision to themselves and others.Thats why its vital to underpin the buying vision with quantifiable ROI.13Building Stronger Customer Relationshipsm a in t a inexecutive altitudeMost companies focus

51、 on typical customer success drivers,using metrics like utilization,adoption,etc.But while youre reporting on usage metrics and project status,that same executives name is moving through your competitors sales funnels.Your competitors are actively trying to disrupt your customers status quo(you!)and

52、 woo them away with new insights.And when your relationship is under siege,you wont win with project-level metrics because they arent what decision makers care about.To protect and defend the relationship,you need to prove youre helping your customer make progress toward meaningful business goals an

53、d that youre ahead of evolving pressures that might put those goals at risk.In other words,you need to maintain executive-level altitude when youre documenting results.Your ability to document results by connecting project-level metrics to executive-level strategic outcomes is a cornerstone of every

54、 commercial conversation youll have with your customers.how s hould you d oc ument res ul t s?The Triple Metric is a useful framework to connect your project-level metrics to strategic outcomes that decision makers care about.Learn more in this videoNicci Nesmith Hammerel EVP of Customer Success and

55、 Chief of StaffYour customers face evolving pressures that continually change their requirements for success.To protect and grow the relationship,you need to continually bring them new insights and relevant solutions.Expand Successc lo s e t h e c o m m e rc ia l m e s s a g in g vo id15Building Str

56、onger Customer Relationshipst h e re la t io n s h i pkeep and growWhen companies talk to existing customers,they often only focus on the problem they initially needed to solve.Perhaps its because they dont want to rock the boat.But its a huge mistake to assume your customer doesnt want to hear abou

57、t shifting industry pressures that will put their goals at risk.The world is dynamic.Your customers face evolving pressures that continually change their requirements for success.If you arent continually reinforcing your value and supporting your customers with relevant solutions,theyre even more vu

58、lnerable to your competitors disruptive messages.The goal is to make your customer feel safe and assured that theyre already working with a partner who can help them solve new challenges as they arise.They wont need to look elsewhere.Even if your customer isnt ready to act on the pressures you expos

59、e now,you were the one who brought them to light(not your competitor),so you get the credit.That strengthens the protective barrier around your relationship.from“or”t o“a nd”Your competition will continue to challenge your position as your customers status quo.If youre not showing them how they can

60、stay with you and stay competitive,you risk losing the relationship.Learn more in this videoPaul GeorgeSenior Consultant16Building Stronger Customer Relationshipst he res ea rc h b ehind W hy S t ayAccording to a B2B DecisionLabs study led by behavioral expert Dr.Zakary Tormala,this Why Stay message

61、 that reinforces the status quo led to a 13 percent boost in intention to renew,and people were 10 percent less likely to switch or shop around,compared to more provocative messages.Read the full research study hereDr.Zakary TormalaSocial Psychologist45678Why Stay-10%ProvocativeProvocative+upsell+13

62、%Intention to renewSwitching likelihoodrenewyo u r c u s t o m e r sWhen youre trying to persuade existing customers to renew,use the Why Stay message to show them the progress theyve made with your solution while defending your position as the status quo.Documenting results is a critical first step

63、 in this message framework.Renewal conversations require an approach that reinforces your value as the customers status quo.The Why Stay messageDocumentresultsReview priordecisionprocessMention risk of changeHighlight cost of changeDetailcompetitive advances1.Highlight points of progress toward thei

64、r strategic goals as a result of your partnership.2.Review how much effort went into their decision and validate the success of that decision.3.Underscore the risks of losing momentum in the event of a change.4.Mention the potential costs of bringing in another vendorcosts they avoid by staying with

65、 your solution.5.Show how youve kept their solution up to date with any advances in the market.17Building Stronger Customer Relationshipsa n c h o r yo u r price increaseNearly 70 percent of companies describe their price increase conversations as“50-50”or worse in terms of how well they go over wit

66、h customers.Its not surprising that most price increases arent received too well.After all,no one enjoys spending more money just to stay with the same solution.But for companies with aggressive growth goals,this is an essential conversationone that customer success needs to understand and support.T

67、he Why Pay More message follows the Why Stay framework with one important difference:a sixth step that broaches the price increase by anchoring a higher price before introducing a loyalty discount.This approach works because of a cognitive bias known as the“Anchoring Effect.”When people face a decis

68、ion that involves uncertainty,theyll anchor on a reference point and ascribe value based on that.By setting the anchor as a reference for your customer,youre better able to influence their perception of your price increase.6.Provide a high anchor for the price increase before offering a justificatio

69、n-based discount.t he res ea rc h b ehind W hy Pay MoreAccording to a B2B DecisionLabs study led by behavioral scientist Dr.Nick Lee,participants who heard this Why Pay More message were 15.5 percent more likely to renew and felt 19 percent more favorable attitudes,compared to a disruptive price inc

70、rease message.Read the full research study hereDr.Nick LeeBehavioral Scientist5.506.505.756.756.006.25Likely to renewMessage 1Message 2Message 3Message 5Message 6Why Pay More+15.5%Anchored price increase with justificationDocumentresultsReview priordecisionprocessMention risk of changeHighlightcost

71、of changeDetailcompetitive advancesWhy Pay MoreWhy Stay18Building Stronger Customer Relationshipscontrolt h e c h a n g eThe goal of a Why Evolve message isnt to disrupt the status quo,nor is it to get customers to renew an existing solution.Its about getting the customers to evolveembrace change,bu

72、t only as a logical progression of the ongoing pursuit of their goals.This“controlled change”message ensures they wont stagnate while inspiring them to embrace your innovations with confidence and enthusiasm.Why Evolve is essentially a hybrid message that includes elements of a provocative new custo

73、mer acquisition story(Why Change)and elements of the more protectionist customer renewal story(Why Stay).t he res ea rc h b ehind W hy E volveAccording to a B2B DecisionLabs study led by behavioral scientist Dr.Nick Lee,this Why Evolve message significantly outperformed other messages when trying to

74、 convince existing customers to purchase a new solution.Read the full research study hereDr.Nick LeeBehavioral Scientist5.05.25.45.65.86.06.26.46.6Likelihood of purchasing new solutionWhy EvolveSocial influenceWhy ChangeWhy StayProduct hero+15.7%DocumentresultsHighlightevolvingpressuresShare“hardtru

75、ths”Risk ofno changeUpside opportunity1.Qualify the tenure and impact of your partnership.Recap the goals youve helped them achieve to date.2.Describe shifting internal and external pressures as a logical progression or evolution,not a surprise or disruption.3.Describe the potential missed opportuni

76、ties,both internally and externally,from your vantage point as a trusted partner.4.Emphasize the potentially harmful risks and repercussions of not evolving or keeping up.5.Use personalized“you”language to transfer ownership of the solution and the internal and external benefits for making the chang

77、e.The Why Evolve messagereboundw h e n t h in g s g o w ro n gWhen youre able to point to specific performance gains directly related to your customers original goals,its much easier to keep and grow the customer relationship.But what if something goes wrong?And what if youre the one who screwed thi

78、ngs up?No matter how you phrase it,apologizing for a service failure is never easy.Your customers upset,and you need to salvage the relationship(and their business).If you dont phrase an apology the right way,you not only risk losing the customer youve wronged,but you also risk all future revenue fr

79、om that relationship.Losing that customer also means losing the opportunity to grow or expand within their account.No matter what went wrong,both the way you handle that failure and the conversations you have along the way are vital to managing your customers feelings about you later in the relation

80、ship.Handling a customer crisis the right way will not only rescue the relationship;it can advance it to an even higher level.Researchers call this phenomenon the“Service Recovery Paradox:”a situation in which your customer thinks more highly of you after youve corrected a problem than if theyd neve

81、r had the problem to begin with.In other words,a service failure is actually an opportunity to increase customer loyalty!19Building Stronger Customer RelationshipsTimeCustomer loyaltyService failureService recoveryCustomer with service failure and successful recoveryCustomer without service failureS

82、ervice recovery paradox20Building Stronger Customer Relationshipst he res ea rc h b ehind W hy Forg iveRead the full research study hereThe Why Forgive message measurably improves your ability to increase customer satisfaction and loyalty,even after a service failure.As with all the message framewor

83、ks in this e-book,its not just what you sayits how and when you say it.The research shows that the order in which you present these components makes a big difference in how your message is received.apologyd e l ive r yo u rAccording to a B2B DecisionLabs study led by behavioral scientist Dr.Nick Lee

84、,decision makers who received this Why Forgive message were more likely to recommend the vendor and even buy more after a service recovery.Dr.Nick LeeBehavioral ScientistLikely to buy more6.505.504.506.255.256.005.005.754.75+16%Condition#1Condition#2Condition#5Condition#4Why ForgiveOffer ofrepairAck

85、nowledgeresponsibilityDeclaration of repentanceExplanation ofproblemExpression ofregret1.Describe how youre going to make the customer whole again and work toward rebuilding trust.2.Demonstrate that you understand your part in the service failure.3.Promise to not repeat the problem.4.Explain the rea

86、sons for the failure.5.Express how sorry you are for the problem.The Why Forgive messageAlign value with meaningful metrics early in the customer relationship.Maintain executive engagement and access throughout the customer relationship.Master commercial conversations to keep and grow the customer r

87、elationship.c lo s e t h ecommercialCustomer success managers tend to shy away from anything that feels,looks,or smells like selling.They want their customers to see them as advocates for their happinessto believe theyre personally invested and working incessantly to“surprise and delight”the custome

88、r every day.The last thing they want to do is upset that perception by trying to sell something.But customer success doesnt need to become sales.What they do need to become is value communicators.Pleasing the customer is undoubtedly an important part of the job.But happiness isnt enough.Customer suc

89、cess needs to uphold your customers best interests,which means helping customers succeed in an increasingly complex and ever-changing business environment.Customer success has the unique opportunity to grow their role and become not just advocates but also architects for ongoing revenue growth.Dont

90、squander that potential.Learn and apply the science and conversation skills in this e-book,and youll have what it takes to build profitable and long-lasting customer relationships.CREATE SUCCESSELEVATE SUCCESSEXPAND SUCCESSmessaging voidCorporate Visions is the leading provider of science-backed sal

91、es,marketing,and customer success training and consulting services.Global B2B companies work with Corporate Visions to articulate value and promote growth in three ways:Make Value Situational by distinguishing your commercial programs between customer acquisition,retention,and expansion.Make Value S

92、pecific by creating and delivering customer conversations that communicate concrete value,change behavior,and motivate buying decisions.Make Value Systematic by equipping your commercial engine to deliver consistent and persistent touches across the entire Customer Deciding Journey.a b o u t C o r p

93、 o r a te V i s i o n scontr ib u t o rsa uthorTim RiestererChief Strategy Officer Corporate VisionsDoug HuttonSVP,Products Corporate VisionsRob PerrilleonSVP,Delivery Services Corporate VisionsNicci Nesmith Hammerel is the EVP of Customer Success and Chief of Staff for Corporate Visions.Since her c

94、areer at Corporate Visions began in 2009,Nicci has worked closely with companies like ADP,Dell,Oracle,and GE to develop and tell their stories in a memorable way.This experience has given her a unique glimpse into the challenges and triumphs corporations experience when reaching across departments and geographies to work toward a common goal.CONTACT US TO LEARN MORE Nicci Nesmith HammerelEVP of Customer Success and Chief of StaffCorporate Visions Corporate Visions,Inc.|1.800.360.SELL|Paul GeorgeSenior Consultant Corporate Visions