This post explores ideas related to full adoption and value realization with B2B SaaS solutions. I've broken a B2B enterprise solution value chain into a few steps, and defined some terms, to highlight recurring issues we've helped customers work through to achieve successful adoption and ROI. At the end we'll suggest some takeaways to improve your delivered value, customer sat, and net revenue retention.
The Solution Value Chain
Let's agree on a few labels first - working from left to right in the below diagram. Platform Outputs are the system-level results that a customer receives. They could be based on a feature, a use case (process steps and features combined), or in some cases how the platform delivers results from specific data sources. Next, we'll label change management, org, communications, training, and process steps for full implementation as Required Customer-Side Efforts. Next, Value Received is the realized business value - the improvements we want, often referred to as "outcomes". Then ROI is the quantifiable business results, with ROI Data being the numeric evidence we need to calculate the ROI. Some ROI Data may be readily available to the platform (think conversion numbers for ecommerce solutions), but often they are only received through special requests to the customer.
Figure 1: Value Chain Example, Platform Outputs to ROI
Necessary Intermediate Efforts
With B2B SaaS solutions, the platform outputs are typically a couple steps away from Value and ROI. They can combine in a complex way, sometimes detailed in your solution use case and value mappings. This isn't true for every solution, but my experience is that even moderately complex B2B solutions require some level of training, process design, stakeholder alignment, day-to-day policy incorporation, etc. to achieve value. Sometimes the vendor or an implementation partner can provide these holistic services. But in reality, customers are not always willing to pay for all of the required efforts, leaving their team members with tasks needed to get to full implementation and adoption - the Required Customer-Side Efforts.
Figure 2: Platform Outputs May Influence Multiple Value Results
Full Adoption and Attribution Uncertainty
In between the Platform Outputs and the Value Received lie two things an enterprise CSM should carefully manage. The Required Customer-Side Efforts necessary for full adoption, and what I've termed here "The Credibility Chasm" brought by Attribution Uncertainty. Attribution Uncertainty is the appearance or reality that your platform outputs may not have been the key or only changes to bring about the value improvement. For instance, if your customer's ecommerce site showed a jump in conversions after your implementation, how do you know the change was not due to a marketing campaign, a product event, or something else outside of your solution? The head of marketing may feel their recent promotion campaigns were the root cause, not your site improvements.
Figure 3: Attribution Uncertainty Affects Platform Value Credit
The Success Plan
All of this should be considered as part of your customer Success Plan. In fact, these elements form key components of the Success Plan, with the Customer-Side Efforts often included in the implementation plan if they've been accounted for, or under the category of Adoption Barriers if they are yet to be accounted for.
Figure 4: Incorporate Elements into Success Plan
Case Example: AI / NLP Solution for Cellular Telephone Service Provider Situation: Client is a mobile telecom provider interested in reducing subscriber churn by leveraging natural language processing insights to find improvement opportunities. The solution scans multiple data sources including internal emails, help desk system records, and web sources to find sentiment, service, and pricing/campaign opportunities. Platform Outputs: Insights found through data in tag categories that indicate problem areas to investigate. For instance, the solution may discover customer references to "price" or "customer service" or "features" being causes of negative sentiment and churn. Required Customer-Side Efforts: Presenting insights to internal stakeholders and advocating / negotiating for changes to the relevant departments, processes, policies, prices, etc. Establishing processes for use of the insights, and establishing credibility of the solution, holistically in the enterprise. Value Received: Improvement opportunities across departments based on these insights. Actual improvements implemented and the resulting business benefits (outcomes). Attribution Uncertainty: Did the solution find these insights or were they already known? If improvements were made and tangible results realized, were the platform insights the sole contributors to the improvement? ROI Data: Churn information and data to tie improvements back to departmental changes triggered by the insights. (A potentially complex interplay of process and data discovery may be required as a first step.) Reduction in customer support tickets is an example of an intermediate ROI, with churn reduction as the customer desired final ROI. The "So What's" - Key Takeaways for the CS Team
Map your solution to value and understand all of those Required Customer-Side Efforts. Work with your clients on how those will get done, and check in on them frequently if not part of the overall solution you or a partner are providing. Ideally you want those efforts and resources as part of your extended vendor/client team, but often this is not achievable. Make it all part of your Success Plan in any event.
Understand what aspects of Attribution Uncertainty apply to your customer in achieving value with your solution. Incorporate expectations management, exec communication, and continued understanding of these dynamics into your regular business reviews.
If a quantified ROI is expected in the Success Plan, understand the data needed and which are special requests. Set expectations early regarding these special requests, the frequency, and work with the customer on the effort required on their side. Whether or not you will track, and how you will demonstrate, ROI, should be part of the Success Plan agreement you come to with your customer at the start of the implementation.
Focus on what you can control - regularly report on your Platform Outputs that are upstream in the value chain. The level of detail that makes sense here will differ by solution. This way, if and when your customer experiences problems downstream in achieving full value, you can highlight that the platform is providing its part of the value chain, and ask how you can assist with their downstream needs. This is very useful in business reviews - highlight what the platform has provided early in the review, and then work through the client side process, adoption efforts, roadblocks and needs as you progress toward realized value and ROI in your discussion. This approach can position you well for services upsells as needed to achieve maximum value for your customer.