According to a recent Gartner report, customers are 86% more likely to repurchase or renew after receiving value enhancement during a service interaction. This can be anything from validating that their purchase decision was the right one to educating customers on better uses of your product and informing them of new product features. In today’s competitive market, it is clear that demonstrating your value is key to ensuring renewals and expansions. Due to this, value realization has become a top priority amongst many top SaaS organizations. However, how do you measure whether or not your value realization program is successful? What metrics or KPIs do you use?
In a recent Customer Value Community Value Disruptor discussion, Woody Evans, Vice President, Global Sales Engineering at Delphix by Perforce, and Larry Morgan, Manager, Presales - North Central US & Canada at Delphix by Perforce, joined to share their insights into how they measure successful value realization at their organization. Below are their top four measures for success.
1. Visibility
In order for Delphix by Perforce’s Value Realization program to be successful, they needed to prioritize visibility. For a value realization program to succeed, it must be transparent, ensuring metrics and calculations are easy to understand for everyone, regardless of their background. Metrics should not be accessible only to those familiar with complex formulas but must be clear and actionable for C-level teams, front-line management, customer success managers, and sales teams. This visibility enables all stakeholders to track promised outcomes and how value delivery aligns with customer expectations.
Additionally, the database should remain organized and easily searchable, allowing anyone to quickly locate necessary data. This accessibility fosters transparency both internally and with customers, helping the organization combat churn, drive expansion, and improve net revenue retention (NRR) by clearly demonstrating the realized value and its impact on customer outcomes.
2. Comprehensibility
When demonstrating value realized, it is easy to fall into the trap of the more numbers the better, wanting to include every detail possible. Both ROI and value realization can be complex and have many different elements to them depending on the business outcomes and goals of your customers. As you build out additional demonstrations of ROI or value realized, it is easy to want to include all elements to give your stakeholders as much evidence as possible as to why they should renew and/or expand.
However, when you focus only on getting as much data across as possible, you begin to lose sight of your customer and their specific goals. For example, the business value team at Delphix by Perforce knew they wanted to stay away from overcomplicating their data and make it easy to pare down to what was relevant for their customers. To ensure that your business case for value realization is comprehensive and easy to understand for your customer, you should narrow down your metrics to only those that directly apply to your customer’s business objectives. Sometimes, more is not always better.
3. Content Management & Generation
To demonstrate value realization over time, effective content management is essential. Woody and Larry highlighted the importance of documenting tactics, metrics, targets, and timelines that can be easily actioned to achieve the goals promised during sales. They also recognize that success can be measured by the ability to apply basic formulas and adapt them to other business cases seamlessly.
By managing all content in one centralized location, such as a value selling platform, they ensure easy access and reusability for future use cases. This streamlined approach supports value delivery, enhances visibility, and drives outcomes that help combat churn, improve net revenue retention (NRR), and drive expansion.
4. Barrier Free
When defining the success of their value realization program, the Delphix by Perforce team explained that you should prioritize keeping it barrier-free. While having comprehensive content, metrics, and business cases is crucial, they understand that these resources must be easy to access and use to drive meaningful outcomes.
A successful program ensures that users can quickly import or export data, generate output reports, and make updates effortlessly. The platform must be user-friendly, allowing for quick changes to data points, seamless additions, or updates to branding and language. By making content simple to access and manage, you can enable better value delivery, improve efficiency, and support efforts to combat churn and expand customer accounts.
Ecosystems SaaS platform utilizes best-practice business cases that help you track tactics, metrics, targets, and timelines to help you achieve value realization. And with your collaborative platform and simple UI design, it is easy for you to make real-time changes and create output reports with your customers. Contact us to learn more.
