For strategic procurement, customer success metrics are measured in two categories: efficiency and effectiveness.
As I mentioned in Part 1 of this series — Do you have a strategic relationship with your technology provider? — I recently joined Determine as Senior Vice President of Customer Success. On March 14 we held our West Region User Group in Laguna Beach, which brought together valued customers to share their experiences, feedback and ideas about our solutions and Determine as a company. [inlinetweet prefix=”@Determine” tweeter=”” suffix=”#procurement”]That openness and reinforcing of trust are critical components to establishing a sustainable Customer Success Management program[/inlinetweet].
In that first post, I talked about the fact that procurement and their technology provider need to work together in pursuit of value. Neither can succeed without the other, and the more collaborative they can be, the greater their speed to expanded results.
We often talk about procurement’s pursuit of value beyond savings as the function is elevated to a strategic role in the enterprise. And while this is the right path to be on, we still need metrics to capture and track procurement’s contributions. These metrics need to serve as drivers of sustained value – not just monitors for transactional task completion.
When I think about ensuring customer success, I am focused on making sure our customers maximize their value from the suite of products we have to offer. This requires us to be able to calculate or quantify the specific value customers realize. And with all of different products Determine offers, each one of those can be its own “track.” We can look at spend under management savings, compliance savings, elimination of overpayment to suppliers, realization of higher discounts — the list goes on and on. At a high level, though, I think about these customer success metrics in two categories: efficiency and effectiveness.
Efficiency: Time is Money
If procurement can make process changes and implement technology that saves both time and money, it will have a significant impact on operational performance. For example, using a budgeting product gives procurement the opportunity to define and capture the value of automating the PO process and the invoicing process – and track both over time.
Effectiveness: Getting it Done
Simply getting as much spend as possible through procurement technology is a starting point for measuring effectiveness. It is the foundation that savings, compliance, and risk management are all based on. Beyond that, there are a number of other calculations that we can use to track additional benefits, such as early pay discounts and reductions in supplier overpayment.
[inlinetweet prefix=”@Determine” tweeter=”” suffix=”#procurement”]If procurement is looking to get better results, we all need to make sure we’re not just “ticking off” tactical metrics.[/inlinetweet] Each metric has to be associated with a larger objective that holds long term meaning for the enterprise.
At the end of the day, building customer success means owning the relationship. I believe that it is important for us to be an extension of your project team, playing an active role in helping you achieve measurable, quantifiable value for your company. Going back to my first post about the best way to know if you have a strategic partnership with your procurement technology provider: if we can elevate procurement’s role in the organization, we know we will be a success – as will our customers.
If you’d like to learn more about increasing procurement’s value and influence in your organization, check out our archive of blogs, webinars and research. Better yet, schedule a personalized demonstration of the Determine Cloud Platform and we’ll show you.