Hiring: Structuring and Recruiting A Customer Success Team to Scale

©2015 Gainsight. All Rights Reserved.
Hiring: Structuring and Recruiting A
Customer Success Team to Scale
Moderator: Tomasz Tunguz, Partner at Redpoint Ventures
Boaz Maor, Head of Global Customer Success at Intel Mashery
Mike McKee, SVP, Services and Customer Success at Rapid 7

Hiring and Structuring
a Best-in-Class Customer
Success Team
Case Study from the
work at Mashery
Boaz Maor
MASHERY
• 2015 - May 12
• Twitter: @BoazMaorr)

3
• Why Are We Here?
• Brief Background on Mashery
• Customer Success at Mashery: Vision, Mission, Scope, Structure
• Organizational Design: Plan the Future State
• Organizational (re) Alignment: Change from Today’s State
• Organizational (on-going) Management: The Day-to-Day
• Questions and Discussion
Agenda
3

4
We Would Like to Set the Best Structure for Customer Success
4

5
Agenda
5

Source: Cartoonstudies.org
API
Mashery is the Leader in API Mgt Solutions and Apps Come from APIs
6
x
6

Smartphone
Tablet
Gaming
ConsoleDesktop
Blu-Ray
Connected TV
Mall Directory
Dressing Room
Blood pressure monitor
Refrigerator
Car Radio
Car GPS
Airplane Entertainment
Store Kisok
Cash Register
POS Display
Bus Stop
Postal Trucks
Inventory Systems
Supply Chain
Subway Map
Alarm ClocksSubway Map
Scale sensors
Railway Schedule
Bus Stop
Radios
Toys
Cameras
Watches
Trains
eReaders
Dog Collars
Treadmill
Biometric Devices
Product Scanners
BlackboardsDelivery Vehicle
Concert Turnstile
Toll BoothRunning Shoes
Scale
Baby Monitor
Power Outlet
Product Sensor
Washing MachineAir Conditioner
Security Bracelet
Remote Control
Vending Machines
The World is Becoming More Connected: 200 Billion Connected Devices
77

Apps Grant
Wishes
…Apps come from APIs
8
And Apps are a Major Driver for that
8

Open Web API - Consumer Example: The Use Case
99

Image Description Ratings/Reviews
Manage Queue /
Update Account
API
Open Web API - Consumer Example: The Role of APIs
1 10

API Programs Are Used By Different Companies for Different Needs
111

1
Agenda
12

At the end of the day, our success in the marketplace is
measured by the extent of the value our solutions provide
to customers. The higher that value, the greater is our
ability to be successful.
Mission of Customer Success Team
113

The Three Key Objectives of the Customer Success Team
1
1. Maximize Value Our Customers
Extract from Our Solutions
2a: Maximize Monetary
Value to Us
2b: Maximize
Non-Monetary Value to Us
14

The “Formula” Definition of Customer Success (for the Customer)
1
Program
Scope
Program
Value
Program Scope:
What
Program Execution:
How
Program Value:
Why
15

Complementary Skills and Teams are Needed to Execute on This Charter
1
Program
Scope
Program
Value
PS
CPSM
TSS
16

The Structure of the Customer Success Team
1
Director,
Professional
Services
VP, Customer
Success
Director,
Technical
Support
Services
Director,
Customer
Program
Success Mgt
Director,
Knowledge
Services
CEO
17

1
Agenda
18

1
1. Design the Future State
2. Assess Today’s State and Re-Align
Towards the Future State
3. Manage the Day-to-Day
Organizational Development: Plan for 3 Phases
19

The Theory of Organizational Design is Well Established
220

1. Organizational Design – Plan for the Future State
2
1. Your organization should fit your
company’s DNA
2. Your organization should evolve
over time
3. Develop options by theory, Make
decisions by people
Top 3 Best Practices
21

2
2. Organizational Realignment – Hiring Top 4 Best Practices
1. Hire people that fit your charter
2. Hire the best people you can!
3. Hire so: 1 +1 = 3
4. Passion for Customer Success
22

3. On-Going Management
2
People: the right people at the right roles. High quality,
self starters, energetic and motivated
Goals: clear measurable and agreed upon objectives we
are going after
Trust: that the other people around us will do their jobs, so we can
focus on ours
Communications: essential for effective collaboration and ensuring
the team produces output that is greater than merely the sum of the
individuals
The Day-to-Day Success =
ƒ(People, Goals, Trust, Communications)
23

2
Agenda
24

225

THANK YOU

Michael McKee, SVP Services
& Customer Success
mmckee@rapid7.com
Customer
Success at Rapid7
Structuring and
Recruiting a Customer
Success Team to Scale
INSERT
YOUR
PHOTO
HERE

Rapid7 helps you reduce threat exposure and detect compromise.
29
We understand the attacker better than anyone and build
that insight into our security software and services.
Threat Exposure
Management
Reduce Your Risk of a Breach
Incident Detection &
Response
Find The Attacks You’re Missing
Security Advisory
Services
Accelerate Security Improvement

• Founded in 2000, Boston-based, 600 people, $90M raised
• 3,700 customers globally, including more than 30% of the Fortune 1000
• Focused on providing Security Data & Analytics to prevent and detect breaches
Threat Exposure
Management
Reduce Your Risk of a Breach
Incident Detection &
Response
Find The Attacks You’re Missing
Security Advisory
Services
Accelerate Security Improvement

KEY LEARNING #1
Broad organizational commitment to
customer success is key

Customer Success is key to Rapid7 Success
 Renewals
 Footprint expansion
 References for new sales
 Churn
 Operational costs

Your Headline Goes Here
Without Customer Success,
There Are No References
33

There are No Renewals
34

There Is No Expansion
35

Rapid7 Leadership – 2014
CEO &
President
Chief People
Officer
Chief
Financial
Officer
Chief
Marketing
Officer
SVP NA
Sales
Account
Management
VP
International
Sales
SVP
Services &
Support
SVP of
Products
CTO

Rapid7 Leadership – 2015
CEO &
President
Chief People
Officer
Chief
Financial
Officer
Chief
Marketing
Officer
SVP Global
Sales
SVP Services
& Customer
Success
SVP of
Products
CTO
LAND EXPAND

Organizational Focus on Customer Success
Fixing Educating
Renewals
Onboarding &
Adoption
Implementation Usage
Product Sale Set up for Success
Services &
Customer
Success
Professional
Services
Customer
Success
Management
Global
Learning &
Support
Sales
Engineering

Path to Customer Success
Purchase Deployment Adoption Expansion
39
Account Executive Customer Success Manager Account Executive
Sales Engineering Services PM,
Onboarding Specialist
Learning & Support Sales Engineering
Services Learning & Support Sales Engineering Services
Products & Engineering
Early Warning System & Recovery
Relationship
Lead
Functional
Contributors
Key Information Transfer

KEY LEARNING #2
Find the right balance between adoption,
retention & expansion

Account Management
• Focus on Purchase plus 90
days vs. Renewal minus 90
days
• New onboarding process
• Adding customer learning and
health check tools
Customer Success
Management (CSM)
RENEWALS ADOPTION

CSM Organization
• Alignment matches Sales: Enterprise, Named, Mid-Market
• 90% of team has renewal number;
• Exceptions are 2 Onboarding Specialists and 1 Customer Success
Engineer
• CSM org works very closely with Global Learning & Support
• Compensation:
• Managers: 75% base / 25% variable
• ICs: 80% base / 20% variable
• Variable is 80% renewals, 20% leads to sales
Greg Monahan
Manager CS
Victoria Rutenberg
Manager CS &
Onboarding
Ferrante
ager CS
TBH 2/1/15
Customer Success
Engineer
Amy Ngoon
Enterprise CSM
Catherine McNally
Enterprise CSM
Shadi Abazari
Enterprise CSM
Laura McCleney
Enterprise CSM
Joe Scurio
Senior CSM
Jim Melchin
Federal/State CSM
Andrew Early
CSM
Christina Ward
Named CSM, Team
Lead
Rebecca Anzalone
CSM, Team Lead
Amara Oleson-
Richards
CSM
Alexa Eliopoulos
CSM
Heather Rackley
Named CSM, Team
Lead
Ben Horgen
CSR
Laura Hathaway
OnBoarding Specialist
TBH 10/1/15
CSM
TBH 2/1/15
Premiere CSM
John Baker
OnBoarding Specialist
Shauna Geagan
CSR
US Domestic Account Ratios:
Premiere CSM x1: (20:1)
Enterprise CSM x4: 221 (70:1)
Federal/State CSM x1: (150:1)
Named CSM x3: 658 (210:1)
CSM x4: (235:1)
CSR x2: (400:1)

CSM Time Allocation
Year Adoption Retention Expansion
2014 20% 70% 10%
2015 35% 55% 10%
Types of Activities Type
Renewals (Quoting, Selling, Negotiations, Research, Customer Discussions, Order
Processing)
R
Onboarding (Welcome, Expectations, Project Manage, Handle Escalations) A
Escalation Management (Technical, Political, Salvage At Risk Customers) A / R
Adoption Activities (Drive usage, engagement, beneficial behaviors, Education, Nurture) A
Discovery / Engagement Activities (Roadmaps, Voice, Drive Usage, References, Project-
Specific Campaigns)
A / R /
E
Lead Generation (Identify Upsell/Cross-sell opportunities, work with Sales to close) E

KEY LEARNING #3
44
Know the CSM profile you are after

CSM Profile Options
45
• Table stakes: Attitude & Aptitude
FarmerHunter
Non-TechnicalTechnical
SeniorJunior
SelfTeam

In Summary…
46
1. Broad organizational commitment to
customer success is key
2. Find the right balance between adoption,
retention & expansion
3. Know the CSM profile you are after

THANK YOU
Michael McKee, SVP Services & Customer Success
mmckee@rapid7.com

Hiring: Structuring and Recruiting A Customer Success Team to Scale

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