Identifying And Managing Risk

Question 1

Why do you need a Risk Management Strategy?

Answer 1

If you manage risk, you can also grow faster. Risk is an early indicator for Churn. Your job as CSM is to spot risk and resolve proactively.

Question 2

When can risk emerge?

Answer 2

Risk can emerge at any customer lifecycle stage really. In example

• during the Sales Process (bad fit customer)
• during onboarding (mismatch between expectations)
• during adoption (lack of support doing daily operations)
• during crisis situations (bug emerging or performance issues).

Question 3

How to identify risk early?

Answer 3

Look at the signals, and be good at filtering out noise.

Question 4

Name types of signals for spotting risk early

Answer 4

1) Multiple support tickets being raised
2) Negative sentiment
3) Drop in product usage
4) Late invoice payments
5) Low Customer Health
6) Unwillingness to provide a reference

Question 5

What should you be aware of when communicating with At-Risk customers?

Answer 5

1) Acknowledge the issue towards the customer; take them serious
2) Outline what happened
3) Explain how you are going to fix it; be transparent
4) Do what you said you would do

Be proactive, timely and consistent when communicating. Go above and beyond with your communication.

Question 6

What are the key components that goes into a risk management process?

Answer 6

1) A well-understood risk definition (clearly defined categories in red, yellow..)
2) Reliable tracking mechanism
3) Consistent measurement and reporting methodology (understand risk churn)
4) Engineered to drive continuous improvement (take learnings and reduce root cause)