Five good reasons for a Customer Success Manager to do a Quarterly Business Review
A QBR stands for Quarterly Business Review.
This post is designed to give you a CSM‘s (Customer Success Manager) perspective on the What, Why, and How of a QBR. It also attempts to provide the client's perspective of a QBR.
The Scenario:
You are a SaaS software company and you sell your products to clients. Your product requires the client to invest in resources to use, manage and get value from your product. Your client has assigned an internal leader to look after and own the daily operation of your product. This leader may also lead a team of resources like developers and SMEs (Subject Matter Experts).
Format of the QBR session
Typically a 30-60 minute session which may include a presentation, scorecards, use cases, and demos.
Who should attend a QBR?
From the Client:
The leader & their key reports
The leader's manager (CxO, Senior mid-level mgr)
Vendor:
Customer Success manager
Sales Rep
Sales Manager
What is the value of a QBR from the Vendor and Client’s perspective?
Vendor’s Perspective
The quarterly business review delivers these five things to the software vendor.
Greatest hits of the last quarter: What are the highlights of the actions and activities that have taken place over the last quarter and what were the results? These results need to be front and centre in helping the client determine the value. A discussion around what worked and what didn't
Alignment: Demonstrating practical day-to-day alignment between the vendor and the client's teams. How did the vendor support the client in achieving their goals?
Commitment: Provides an opportunity to verify the last quarter's work and drive consensus on the key plays for the next quarter.
Retain and Expand: The vendor can maintain a competitive advantage by demonstrating a key feature that keeps the vendor top of mind and de-focuses the competition's capabilities. It also provides space for the vendor to highlight their innovative credentials. This is a way of kicking off an expansion discussion.
Relationship: An opportunity for the Sales Manager on the vendor side to verify and solidify the existing relationship with a senior member of the client’s management team
Client’s perspective
What does the QBR deliver to the client?
Lift the team: The QBR process lifts the value of the client’s leader and his or her team in the eyes of the senior manager / CxO. It gives them the opportunity to bask in the glory of recent wins and demonstrate their ability to overcome challenges.
Internal Client relationships: The leader gets access to a senior leader within their organisation and this can help kick off a closer collaboration. It encourages internal alignment and can streamline internal politics
Client & Vendor relationship: Provides a proof point around the relationship with the vendor. It can facilitate a deeper relationship and develop more trust
Commercial: A QBR process provides a solid platform for commercial discussions as the relationship with the vendor is more trust-based. This plays out well for the client because both sides are more open to give and take during commercial negotiations - it reduces the variability in pricing and allows for favorable terms when considering new features and products
Assets: Additional assets and collateral are generated during the QBR process e.g. use cases. These can be used to help communicate the value of the program more widely.
At the end of the QBR, all participants should feel positive because the QBR process (should) align the participants and drive consensus.
I am always keen to hear your thoughts so please add your comments.
If you would like to know more about how to "project plan" the work to deliver a QBR and the content that the QBR session should contain, please sign-up here.
