PRODUCTEA with Leah, Growth & Senior Leadership
55: Mike Weir - Churn & Sales compensation to fight churn
Summary
The conversation with Mike Weir, former CRO of G2, focused on reducing churn and driving expansion revenue.
At G2, they used a churn model with 14 highly correlated variables to identify at-risk customers and prioritize actions for the customer success team. We also discussed the importance of product and marketing in customer education and engagement and how to align sales, customer success, product, and marketing in a product-led growth (PLG) organization.
The discussion also touches on the role of compensation plans in driving the right behaviors and the importance of measuring and rewarding actions that correlate to long-term revenue and whether founders should do sales and for how long.
Takeaways
A churn model with highly correlated variables can help identify at-risk customers and prioritize actions for the customer success team.
Compensation plans should reward behaviors that correlate to long-term revenue, even if they don't directly generate revenue.
Product teams play a vital role in supporting sales efforts and providing valuable data.
Founders should stay involved in sales for as long as possible to refine their understanding of the market and product-market fit.
Sound Bites
"You got a customer that's kind of like half in the boat, half in the water."
"Expansion is the best way to fight against churn."
"If they're already trusting G2, then why not use that G2 third party validated content in that direct conversation when you get them engaging with your marketing materials or in a direct meeting with you."
Chapters
00:00 Profile Completeness and Engagement
11:08 Using a Churn Model
30:41 Aligning Sales, Customer Success, Product, and Marketing
39:36 Measuring Handraisers and Sales Calls
48:15 The Role of Founders in Sales
57:24 Incentivizing Actions that Drive Long-Term Revenue
My Blog / Newsletter: www.leahtharin.com
Linkedin: https://www.linkedin.com/in/leahtharin/
Twitter: https://twitter.com/LeahThar
#productledgrowth
Summary
The conversation with Mike Weir, former CRO of G2, focused on reducing churn and driving expansion revenue.
At G2, they used a churn model with 14 highly correlated variables to identify at-risk customers and prioritize actions for the customer success team. We also discussed the importance of product and marketing in customer education and engagement and how to align sales, customer success, product, and marketing in a product-led growth (PLG) organization.
The discussion also touches on the role of compensation plans in driving the right behaviors and the importance of measuring and rewarding actions that correlate to long-term revenue and whether founders should do sales and for how long.
Takeaways
A churn model with highly correlated variables can help identify at-risk customers and prioritize actions for the customer success team.
Compensation plans should reward behaviors that correlate to long-term revenue, even if they don't directly generate revenue.
Product teams play a vital role in supporting sales efforts and providing valuable data.
Founders should stay involved in sales for as long as possible to refine their understanding of the market and product-market fit.
Sound Bites
"You got a customer that's kind of like half in the boat, half in the water."
"Expansion is the best way to fight against churn."
"If they're already trusting G2, then why not use that G2 third party validated content in that direct conversation when you get them engaging with your marketing materials or in a direct meeting with you."
Chapters
00:00 Profile Completeness and Engagement
11:08 Using a Churn Model
30:41 Aligning Sales, Customer Success, Product, and Marketing
39:36 Measuring Handraisers and Sales Calls
48:15 The Role of Founders in Sales
57:24 Incentivizing Actions that Drive Long-Term Revenue
My Blog / Newsletter: www.leahtharin.com
Linkedin: https://www.linkedin.com/in/leahtharin/
Twitter: https://twitter.com/LeahThar
#productledgrowth