Unlock the Value of Usage Data
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Dan McGaw and Puja Ramani presented on unlocking the value of usage data. They discussed how user analytics can help businesses better understand customer behavior by analyzing data from website visits, apps, billing systems and more. They outlined a four pillar approach to making user analytics actionable: identifying key stakeholders, setting objectives, developing a strategy, and using the right technology. Realizing ROI from user analytics involves blending data sources for new insights, scoring customer health, having a unified view of customers, automating tasks based on usage patterns, and consistently managing customer relationships. Companies have seen reductions in churn rates and increases in renewal and upsell rates by taking action based on insights from user analytics.
Unlock the Value of Usage Data
- 1. Dan McGaw, Dir. of Marketing, KISSmetrics Puja Ramani, Dir. of Prod Mgmt & Analytics, Gainsight Unlocking the Value of Usage Data March 20, 2014
- 2. Dan McGaw Director of Marketing KISSmetrics @danielmcgaw Puja Ramani Director of Product Management & Analytics Gainsight @pramani #customersuccess #KISSwebinar Your presenters
- 3. Join us on Twi er @danielmcgaw #KISSwebinar @pramani#customersuccess
- 4. 1 The Case for User Analytics 2 Making User Analytics Actionable 3 Realizing ROI What We’ll Cover #customersuccess #KISSwebinar
- 5. WATCH THIS WEBINAR RECORDING NOW
- 6. The Case of User Analytics 1
- 7. We Have Entered The Age Of The Customer User analytics enables businesses to effectively reach the right customer with the right message at the right time 1900 - 1960 1960 - 1990 Information 1990 - 2010 Manufacturing Plants Distribution Channels Customer Intelligence 2010 - ? Age of manufacturing Mass manufacturing makes industrial powerhouses successful. ! Boeing, Ford, P&G, Sony Age of distribution Global connections and transportation systems make distribution key. ! Toyota, Walmart, UPS Age of information Connected PCs and supply chains mean those who control information flow dominate. ! Amazon, Google, Intuit Age of the customer Empowered buyers demand a new level of customer obsession. ! Facebook, Apple, Zappos Source: Forrester Research, The Noun Project
- 8. Problem Customer data is everywhere • Growth of mobile and social platforms is fueling the increase in customer data. • New marketing channels create more customer touch points. • Fragmentation of customer data is increasing because of SaaS. • Big data has created demand for increased actionability. • Managing the customer lifecycle is more important than ever. “The ability to take data -- to be able to understand it, to process it, to extract value from it, to visualize it, to communicate it -- that's going to be a hugely important skill in the next decades.” — Hal Varian, Chief Economist at Google
- 9. Welcome to our world of Customer Analytics Every person. Every bu on click. Every purchase. Every device. From transaction #1 to #543. All tracked so the modern marketer knows exactly what's working, and what’s not.
- 10. How it works (it’s simple and powerful) 1 2 3 Copy & paste KISSmetrics' tracking code to track website visitors. Combine this activity data with other data sources such as billing systems, internal databases, offline data, email lists, mobile apps, and more. KISSmetrics connects the dots and creates 360º profiles for every person who has ever touched your business.
- 11. Your customer is at the heart of KISSmetrics
- 12. How effective is my signup process? “I love how KISSmetrics is able to tie visitor activity to customer behaviors so it's easy to know which referral sources to focus on to acquire the type of customers I want.” !! — Ruben (Bidsketch)
- 13. “You can’t maximize your revenue and profit unless you are tracking the lifetime value of each of your customers. And that’s what KISSmetrics does be er than anyone else.” !! — Thomas (Zappos) Which of my marketing channels has the highest ROI?
- 14. What do my customers do before they sign up? “KISSmetrics gives unprecedented insight into the only thing that ma ers: people.” !! — Nik (Librato)
- 15. Are customers coming back on a regular basis? “If you charge money online, you should be using KISSmetrics to understand what's working, what's not, and how to improve.” !! — David (NextBigSound)
- 16. LOG IN WITH GOOGLE Start Your Free KISSmetrics Trial
- 18. We all know a data driven world is inevitability We track everything from our health to our homes to our children We have more data about our customers than ever before
- 20. 38% of companies are not able to communicate and interpret customer analytics results Forrester Research. The State Of Customer Analytics 2012 Data is being generated everywhere about your customer but we still don’t have the technology to get all the data together.
- 21. 54% can’t integrate and manage all their data sources Forrester Research. The State Of Customer Analytics 2012 The deluge of data creates noise that mask the signals that predict customer churn or relationship growth opportunities that you can take action on. We need to get the data in the hands of the people in your organization that can really act on it.
- 22. The four pillar approach is your roadmap to ROI Making User Analytics Actionable People Objective Strategy Technology
- 23. So what can you do? Making User Analytics Actionable
- 24. Making User Analytics Actionable People ● To increase the ROI of your usage and other data, identify a department or group that can do their jobs be er with the use of customer data ● In organizations just ge ing a handle on their customer data, this is usually a post-sales “Customer Success” or “Account Management” group. ● More mature organizations’ marketing and product management groups also use customer data to drive advocacy and referral-based growth as well as stickier product development. ● The most mature companies have customer success stakeholders across the enterprise at every level, from executive to front-line employees.
- 25. Making User Analytics Actionable Objectives ● A er identifying the relevant groups, work with them to identify important customer outcomes to drive. Ensuring that customers get value out of the product will in turn drive ROI for your business. ● Common metrics our customer use include renewal rate, growth and up-sell, advocacy and cross-sell, and discount. Production adoption.
- 26. Making User Analytics Actionable Strategy ● How will you affect your objectives using new data? ● Will you segment customers more granularly or allocate resources differently (with email automation or self- service models)? ● Can you get ahead of issues or become more proactive about renewals and growth? ● What data should you focus on? Can you predict your customers’ behavior? ○ Learn from your happy customers - what makes them successful With people and metrics in place, it’s time to set your customer data strategy.
- 27. Making User Analytics Actionable Technology Data Sources Health Scorecards Predictive Alerts Analytical Insights Customer Analytics Success Actions CRM Marketing Automation Support Usage KISSmetrics Analytics Survey Billing Connectors APIs C360 Predictive Playbooks Success Analytics
- 28. Data Science Alert Rules and Playbooks Confirm Intuition Intuition Best Practice New Insights Counter Intuition Find your most effective predictors and actions Realizing ROIMaking User Analytics Actionable
- 29. Realizing ROI 3
- 30. Realizing ROI Blend with other data sources to discover insights ● When usage data is blended with CRM, billing, support and other customer data sources, you’ll start to see pa erns across different customer segments. ● You will be able to prioritize touches more efficiently ○ Do customers that use certain, sticky features convert to higher packages more readily? ● You’ll also be able to perform be er root cause and effect analysis ○ Did releasing an upgrade at on this day and time affect most of your customer base? ○ Add milestones - your actions’ impact on customers
- 31. Realizing ROI Score customer health using usage data ● Monitor your customers’ sentiment towards your product and company on quantitative (usage, references given) or qualitative (executive relationship) measures. * This can be automated or updated by a customer success stakeholder.
- 32. Realizing ROI Have one view of all your customers ● Create dashboards and reports that refresh as underlying data changes. Always up-to-date ● Always have a snapshot view of ALL your customers. ● Identify problem or opportunity areas, and drill into the underlying data to figure why and intervene. ○ Example: Low contract value customers without training packages are churning more - consider discounting or offering a community to grow these relationships.
- 33. Fire off tasks or outreach based on usage Realizing ROIRealizing ROI ● With all this data at your fingertips, you’ll begin to see common occurrences and pa erns. ● You don’t have to manually take action on each one via custom email or a call ● Rules can capture events and fire off automated emails, tasks, or escalations to other relevant stakeholders
- 34. Take action on early warnings and manage each event Realizing ROIRealizing ROI ● Individual customer success stakeholders can manage their workflow through a back-to- health or up-sell process. ● Remember to always keep data up to date
- 35. Consistently collaborate to keep customer relationships healthy Realizing ROIRealizing ROI ● Apply best practice/data science playbooks guaranteed to work ● Apply automated or collaborative playbooks that you know work for common scenarios. ● This not only helps onboard new employees but also ensures all customers experience consistent service
- 36. Who’s getting ROI from usage data? Realizing ROIRealizing ROI ● Marketo identifies customer relationship growth opportunities based on usage of their marketing platform and automates emails to those targets to nurture and educate them on how they could get value from other solutions in Marketo’s marketing platform. ● Gild, a fast growing talent management solution, has very strategic enterprise clients. Before each interaction with a customer, Gild will pull up the 360 degree view and in 5 minutes be updated on everything about that customer - their support tickets filed, recent usage pa erns, and even if an invoice has not been paid.
- 37. Reduce Churn “Headwind” Increase Up-Sell “Tailwind” Scale Team Efficiently 5 % points 3 % points 52 % *Source: Measuring the ROI of Customer Success Management Solutions - Mainstay Company What? By?* How Customer Solutions Help Realizing ROIRealizing ROI ● In an independent research study, Gainsight customers have seen churn rates fall and renewal rates increase by 5% ● Growth and up-sell have added another 3% to the top line while preparation and effort costs have been cut in half. What Reduce Churn “Headwind” Increase Up-Sell “Tailwind Scale Team Efficiently By?* 5% points 3% points 52%
- 39. THANK YOU Dan McGaw Director of Marketing KISSmetrics @danielmcgaw Puja Ramani Director of Product Management & Analytics Gainsight @pramani