CSP S3 E13 - Mike Sabat - Twilio - Upsells in Account Reviews

In this compelling episode of the Customer Success Playbook podcast, Mike Sabat, Enterprise Account Executive at Twilio, shares his expertise on effectively incorporating upsells into account reviews. He discusses how the increasing complexity of modern products creates opportunities for account managers to deliver additional value through strategic guidance and optimization recommendations. Mike emphasizes the importance of being a trusted advisor, particularly in consumption-based pricing models, and shares practical examples of how understanding customer usage patterns can lead to cost savings and improved outcomes.

Detailed Analysis

The discussion delves into the evolving landscape of customer success and sales, particularly in complex, consumption-based product environments. Mike Sabat provides valuable insights into how account reviews can serve as natural opportunities for meaningful upsell conversations that benefit both the customer and the vendor.

Several key themes emerge from the conversation:

1. Product Complexity as an Opportunity The increasing complexity of modern software solutions, particularly those involving data and multiple use cases, creates a natural need for guided optimization. This complexity provides account managers with opportunities to demonstrate value through expert guidance and strategic recommendations.
2. Consumption-Based Model Dynamics Mike highlights the unique characteristics of consumption-based pricing models, using Twilio's messaging services as an example. In these models, understanding usage patterns and optimization opportunities becomes crucial for both cost management and value maximization.
3. Data-Driven Advisory Approach The episode emphasizes the importance of leveraging usage data and industry insights to provide valuable recommendations. Mike shares how analyzing trends in customer usage patterns can uncover opportunities for optimization and cost savings.
4. Cross-Industry Learning A significant portion of the value comes from sharing relevant experiences across similar customers while maintaining confidentiality. This knowledge transfer helps customers benefit from proven solutions and avoid common pitfalls.
5. Human Element in Customer Success The discussion underscores the continued importance of human interaction in enterprise customer success, even as AI advances. The ability to understand unique customer environments and adapt solutions accordingly remains a crucial human skill.

The conversation provides practical examples, including how understanding regulatory changes in messaging services led to cost savings for a healthcare client through number type optimization. This demonstrates how technical knowledge combined with customer understanding can create tangible value.

For customer success professionals, the episode offers valuable insights into:

• Structuring account reviews to naturally incorporate upsell opportunities
• Building trusted advisor relationships through expertise and industry knowledge
• Balancing customer success with business growth objectives
• Adapting strategies for consumption-based pricing models

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Transcript

Roman Trebon: 0:10

Hi everyone, and welcome to the Customer Success Playbook podcast, where we bring you actionable insights and fresh strategies for driving customer success. I'm your host, Roman Reon, joined by my co-host Kevin Metzker. It's another great week, and we have a fantastic guest lined up today. Kev,

Kevin Metzger: 0:27

how are you doing? Man, I'm doing great and excited about our guest today. We have Mike Sabat, an enterprise account executive at Twillow. Mike's here to share his expertise in helping customers get the most out of communication platforms, optimized usage, and drive meaningful ROI. R O I. Mike, welcome to the show. Hey,

Mike Sabat: 0:48

thanks for having me guys. I gotta correct you though. It's Twilio. Twilio. It's a hard one to pronounce, but Twilio would I say Twilio? It's fun to say. Yeah, it's fun. Yeah, you know, you a little possessed

Roman Trebon: 0:58

Well, Mike, we're gonna dive into today. What we want hear is, uh, for our number one tip show, you're gonna, I wanna hear your thoughts around incorporating upsells into the account review process. And I'd like to know, Mike, why you think that's so important. Yeah,

Mike Sabat: 1:14

absolutely. Products are becoming more complex. And from Kevin's intro, you know, I am an A E with complex products as things get more complex and less, less just like software based and just user based. Maybe there's more data. There's more that account managers and ease and, you know, customer success managers Can do for customers. And so I guess the point I'm getting to, you know, Twilio, the way we work is generally it's a consumption based product. So you are charged based on how many text messages you send, how many minutes of voice you use, things like that. And it's just different from traditional software, right? When you're charged on a consumption basis. I guess the point to make is that we as a ease or CSMs or account managers can really provide a lot of value to customers, helping them understand exactly what they're doing with our products in these more complex landscapes. And that's very valuable, at least with my customers. Sitting down with them, showing them how their usage is trending up in one area down in another area, maybe products that they started using that the, the owner on, on the other end, you know, on the account didn't even know they were using to optimize some aspect of their business. And I guess the point is, you know, these account reviews become very valuable for complex products and just level setting, Hey customer, here's where you're at, right? Here's what you're using. Here's what's going up. What's going down. Like I just said. And so the tip is as part of that account review, it's very natural to talk about here's what other customers that might have been in your shoes three months ago, six months ago, a year ago, here's what they here's where they went. Here's what they've started using. Here's what they've been able to optimize in one direction versus another direction and introduce these new concepts, sometimes new use cases. Sometimes new products into the mix for customers. It's just all around, very valuable in these super complex landscapes to be a trusted advisor to customers, both for our products, but also just for the use cases and what

Roman Trebon: 3:34

we're seeing in the industry. Because your customers, Mike, are looking at you as the expert, right? So we have your product. We're using Twilio. We're getting some value out of it, but tell me. How are other, how are other companies in our same vertical or in their same use cases using it? What should we be doing that we're not doing right? So I'm assuming you guys incorporate this. The feedback from clients has been, has, has been positive. It's just kind

Mike Sabat: 3:57

of part of the, the job. And I wouldn't say invisible, but it is the job, right? And yeah, if you can help customers, obviously, um, they're very, very happy. I mean, one example, which was just to give some detail and a lot of this. In these consumption based models, in these situations where it's not just seats, right? One example, to just put a fine point on it, is when you send text messages now in the U. S., you have three number types. One of them is called a 10 DLC, which just means a regular phone number, right, that you might send or receive text messages from. And all of the different number types went through or now require a different type of registration. And what ended up happening is I had a customer that was not using local numbers, but with this new registration type, because they're a nonprofit and a hospital is a nonprofit, they received cost benefits from the carriers. If they use local numbers instead of what they were using. And I believe that was a toll free number previously. When these volumes get very big, you can say, Hey, we can switch this number from, you know, this number type to this number type, and then save the sort of carrier fee on top of it. And yeah, they're delighted to just save a lot of money for them right off the top by by switching the type of number. And that's just the type of, again, trusted communication, trusted advisor, we can be for our customers.

Kevin Metzger: 5:22

So Mike, with all of these tips and all these different kind of ideas that you're able to give the customers, are you guys doing anything to collect that data or do you have recommendations that you're, you kind of use as a standard thing to share with customers and how are you distributing that kind of the information out to customers? So what engagement model are you using for that?

Mike Sabat: 5:44

Yeah, I think we try. I'm high touch. I'm in that enterprise. Vertical, right? So big customers and there's a lot of human interaction. So again, with these custom, sorry, these big complex You know products and and kind of um footprints that that are starting to emerge in the enterprise customer set Everything is custom. Everything's unique. So you do go from one call and you hear that whatever it might be The customer is doing this and i'm working with a hospital So I hear something and I do bring that into the next call, but everybody has their own unique Environments and and vendors and systems of record and and all of that. So it really is Hard to, um, repeat everything all the time, but you do sort of, I think the best way to approach that is. You try to understand the customer's problems or challenges and then ask the next customer, are you having the same products, problems or challenges and maybe, you know, use what the first customer told you to inform the next conversation. That is a reason, at least at, at Twilio, while. Why I think that humans, us salespeople and CSMs are going to be essential to the, to the company, into the relationships moving forward, basically, we're not going to be replaced with AI immediately because it does take this kind of feel for the conversation, feel for the situation, um, and, and the actual, you know, intelligence to, to try to round pegs into round holes, uh, versus one size fits all. Trying to repeat the problems where they might not be there.

Roman Trebon: 7:25

No, I love it, Mike. And so Mike, thank you for sharing your tip on how to integrate sort of upsells into the account review and how that drives mutual value for both your customers and, and the organization on Wednesday, you're going to be back. Mike, you're going to dive deep into our one big question segment. Well, you'll look at the future of CSMs and the AE rules and what that means and get your take on that. I'm looking forward to that to our audience. Make sure you subscribe so you don't miss it. And until then, Kev, keep on playing.