Customer Success Segmentation & Prioritization Strategies

Burke Alder

Customer Success Strategist

title_ursulallabres

Ursula Llabres, VP of Customer Success at InsideSales.com, brought her high-octane energy to the CS100 Summit stage in Park City, Utah. At InsideSales.com, Ursula thinks big-picture about ways to scale, segment, and create a culture of success throughout her department. Excitedly, Ursula announced to the CS100 Summit crowd that she had recently accepted a position at Facebook at Work. This excitement followed throughout the entire presentation, which Ursula kicked off with a little reminiscing about her family trip in Moab, Utah.

In a true storyteller fashion, Ursula gave a tale about her family ATVing in Moab a ‘successful’ ending. She related trusting your tools, in this case her family’s ATV, to help you succeed in business – and in having fun on the road. Keeping goals simple and focused is imperative.

Watch Ursula’s 30 minute customer success segmentation strategies presentation below:

To introduce her presentation, Ursula first ran through the four key elements of scaling a Customer Success strategy.

4 Key Elements to Scaling Customer Success Strategy

  1. The Customer Journey: What are the expectations of your team, of your customer, and why? What does success look like at every stage?
  2. Account Segmentation and Prioritization: Who are your white-glove accounts? How does your team know where to focus?
  3. The Playbooks: What do you want to accomplish with your customers at every phase of the lifecycle? What are your objectives?
  4. Content, Technology, and People: How will you execute these plans? What types of content will you share with your customers, and how will you use the content they create for you?

Segmentation Strategies at Box

With these four key elements outlined, Ursula tackled one point in-depth, showcasing a use case of account segmentation from her days at Box. Ursula joined the Customer Success team there in 2014, and as part of her leadership duties she inherited a truly demoralized team that was stuck in reactive mode. As part of the strategy to scale and grow her team, Ursula struck a deal with her counterpart in sales: the CSM team would be responsible for 10% of the overall company ARR.

Account Prioritization Matrix

While at first this deal seemed daunting, it created a sense of energy and excitement across the Customer Success team. And, while the four key elements of scaling customer success provided the underlying foundation of the team’s strategy, focusing on a single element is what allowed them to succeed. In conjunction with the Box sales operations team, Ursula and her Customer Success team built an account prioritization matrix that allowed them to identify where to expand, retain, and maintain customer accounts.

4 Quadrants of Segmentation

customer-success-segmentation-strategiesUsing data and analytics from other teams, Ursula and the Customer Success team segmented current Box customers into four quadrants: High Value/Low Risk, Low Value/High Risk, Low Value, Low Risk, and High Value/High Risk. Each of these quadrants correspond with a pre-determined customer sophistication index marker, which told Ursula and the team the depth of the customer’s engagement.

With these parameters in place, Ursula’s team was able to meet their goal of 10% of the overall company ARR. After this success, interdepartmental planning and support became the norm. Ursula created Hackathons that included sales, sales engineers, CSMs, and others to work together to create playbooks for these accounts. When everyone was working towards one cohesive goal, moral was high and team excitement was palpable.

“We focused on a single challenge – even though we had 4 measures of success. We surpassed our goals because we owned it and had focus.”

Ursula ended her presentation by reinforcing the theme of community and engagement between customers and a Customer Success team. Intentional engagement should always be a continual focus of any Customer Success team. Ursula’s Box team created an ongoing cadence of messages and posts for their customer community. Not only did this create habits for CSMs to engage with their community, but customers began to look forward to these interactions as well.

You can also read best practices from other executives who are aligning customer success across their departments in our eBook series called Customer Success as a Culture.

Download the full “Customer Success as a Culture” eBook series:

Customer Success as a Culture: Customer Success Leaders Edition

Customer Success as a Culture: Sales Leaders Edition

Customer Success as a Culture: Marketing Leaders Edition

Customer Success as a Culture: Product Leaders Edition    

Learn more about how ClientSuccess can help your company develop a strong customer success methodology and strategy with easy-to-use customer success software by requesting a 30-minute demo.

New posts each Tuesday and Thursday.

Customer success best practices delivered to your inbox.

Also worth reading

5 Customer Success Leader Actions to Complete Before 2019

As 2018 comes to a close, customer success teams are taking some time for reflection and planning. What better time than now to take a minute to review what worked from the past year, determine where changes could be implemented, and lay out some strategic goals for 2019? Customer success is a rapidly growing industry [...]

Burke Alder

Customer Success Strategist

4 Ways Customer Marketing Improves Retention

We’ll just come out and say it: customer marketing conversations and campaigns aren’t always the smoothest for customer success teams, nor do they tend to foster winning retention statistics. While many customer success managers (CSMs) are well-versed in the day-to-day activation and implementation conversations with customers, introducing them to additional services, turning them into advocates, [...]

Burke Alder

Customer Success Strategist

ClientSuccess Expands Integration Reach with New Zapier Zaps—Customer Data in the Right Place

We at ClientSuccess are passionate about customer success. It runs in our veins and we know that customer growth is the key to building a world-class and profitability SaaS business. Our mission is help you and your customer success team build relationships that last with your clients through human and data driven insights that help [...]

Burke Alder

Customer Success Strategist