Welcome!

Related Topics: @CloudExpo, Cognitive Computing , @BigDataExpo

@CloudExpo: Blog Feed Post

Customer Benchmarking Motivates Action | @CloudExpo #SaaS #Cloud #Analytics

Many CSMs at Software-as-a-Service companies conduct Quarterly Business Reviews with senior executives at key accounts

Customer Benchmarking Motivates Action
By Ed Powers

Electric utility companies promoting power conservation programs discovered that simply informing consumers of their electricity usage relative to neighbors lowered overall consumption. This type of normative social comparison has produced the same effects in other domains. Why does this work? How can the idea be used in Customer Success?

Keeping up with the Joneses
Homeowners typically receive letters from the power company showing how many kilowatt hours they've used over the past month compared with other homes in the vicinity. In addition to bar charts, consumers see a "smiley face" if they're doing well or a "frowny face" if they're trailing the average. The mailers typically also include a list of recommendations for conserving energy.

social norm

Surprisingly, this simple trick works. People change their behaviors when they see how they stack up against others. In multiple experiments run by the utility companies, providing benchmarks reduced overall power usage 2%.1 That may not sound like much, but across millions of homes the savings are substantial, helping power companies meet their government-mandated conservation goals. Similar outcomes from communicating descriptive norms have been shown in hospitality (reusing towels more often),2 voting (increasing turnout),3 and charitable giving (boosting the number of donors).4

What causes this behavior? Neuroscientist David Rock says subconscious social drivers are hardwired into our brains after eons of evolution.5 One primary driver is status, how we view ourselves in the "pecking order." Social bearing means survival-whether it's humans, birds, or wildebeest, members at the apex of the hierarchy are more likely to continue living and pass along genetic information. To aid our preservation, we reflexively perceive higher status as a reward and lower status as a threat. As a result, we savor outranking others and become anxious when we fall short.

Seeing rank expressed in numbers may increase the urgency to act. Neuroscientists have found that the brain uses the same circuitry to process number comparisons as it does to determine social status.6 The findings suggest we subconsciously use numbers to record social rank, and seeing status expressed numerically activates overlapping neural networks that may add fuel to our emotional response. Whenever emotions are strong, decisions and actions tend to follow.

Better business reviews
Many Customer Success Managers (CSMs) at Software-as-a-Service (SaaS) companies conduct Quarterly Business Reviews (QBRs) with senior executives at key accounts. Customers derive business value from deploying and using software, so a common objective is to ensure implementation milestones and adoption goals are met. Executive engagement and attendance at QBRs, however, is a chronic problem. Often CSMs do a poor job of describing how the software subscription impacts things like organizational productivity and decision making, but other times they simply fail to capture the attention of senior leaders.

Showing comparative data can help. Besides demonstrating progress vs. the customer's goals, showing results relative to the customer's own peer groups has greater impact. Executives are usually competitive people. When they see their organization is ahead of the pack, the fact suddenly becomes a talking point with their own bosses. When they see progress is behind the curve, they are more likely to push subordinates and make things happen. Sharing the tidbit garners increased attention and raises CSM status in the eyes of executives. "Information is power" is also true among top managers, and good intelligence is always appreciated.

The approach works at scale, too. Like the power company, automatically communicating descriptive social norms can move the needle in large populations of small customers. When SaaS companies show individual performance relative to benchmarks via tailored e-mails and in-product messages, they can influence behaviors in mass audiences without the need for personal contact. A simple change in how data are communicated can bump customer usage as well as CSM productivity.

New automation tools make the process much easier. OnlyBoth's benchmarking engine uses artificial intelligence to automatically uncover readable, motivating, action-provoking insights and customer comparisons. CSMs can use this novel intelligence to nudge customers toward greater success during business reviews and for routine, personalized e-mail communications campaigns.

We're naturally wired to compare ourselves with others. SaaS companies can easily capitalize on this basic human nature. And that would place them ahead of the pack.

References

1 Alcott, H. (2011). Social norms and energy conservation. Journal of Public Economics 95, pp. 1082-1095

2 Nolan, J., Schultz, W., Cialdini, R., Goldstein, N., Griskevicius, V. (2008). Normative influence is underdetected. Personality and Social Psychology Bulletin 34, pp. 913-923

3 Gerber, A. and Rogers, T. (2009). Descriptive social norms and motivation to vote: everybody's voting and so should you. The Journal of Politics 71, January 2009, pp. 178-191

4 Frey, B., and Meier, S. (2004). Social comparisons and pro-social behavior: testing "conditional cooperation" in a field experiment. The American Economic Review, December 2004, pp. 1717-1722

5 Rock, D. (2008). SCARF: a brain-based model for collaborating with and influencing others. NeuroLeadership Journal

6 Chiaoa, J., Haradaa, T., Obyb, E., Lia, Z., Parrish, T. Bridge, D. (2008). Neural representations of social status hierarchy in human inferior parietal cortex. Frontiers in Neuroscience.

Continue reading

Read the original blog entry...

More Stories By Raul Valdes-Perez

Raul Valdes-Perez co-founded OnlyBoth in March 2014 and is CEO. He co-founded Vivisimo in 2000, a search software company that provided enterprise products and web-based consumer services, serving as its CEO for nine years and as Chairman for twelve until its acquisition in 2012 by IBM.

At Vivisimo he was named a 2007 Ernst & Young Entrepreneur of the Year for the North Central Region and a top ten reader favorite for Entrepreneur of the Year by Inc. magazine. Earlier, he was on the Carnegie Mellon computer science faculty. He received seven research grants from the National Science Foundation and published 50 journal articles and book chapters in computer, natural, and social science.

He received a computer science PhD from Carnegie Mellon in 1991, where his advisor was the Nobel Laureate Herbert A. Simon, and B.S. and M.S. degrees in information engineering from the University of Illinois at Chicago. Raul authored the book Advice is for Winners: How to Get Advice for Better Decisions in Life and Work in late 2012, and is on several company and non-profit boards.

Latest Stories
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effi...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that CHEETAH Training & Innovation will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CHEETAH Training & Innovation is a cloud consulting and IT training firm specializing in improving clients cloud strategies and infrastructures for medium to large companies.
"Tintri focuses on the Ops side of the DevOps, which basically is pushing more and more of the accessibility of the infrastructure to the developers and trying to get behind the scenes," explained Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that TMC has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo and Big Data at Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Global buyers rely on TMC’s content-driven marketplaces to make purchase decisions and navigate markets. Learn how we can help you reach your marketing goals.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...