business of customer success: investor and board perspective
TRANSCRIPT
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
June 5,
2014
The Business of Customer
Success
#customersucces
s
An Investor and Executive Perspective
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
June 5,
2014
The Business of Customer
Success
#customersucces
s
An Investor and Executive Perspective
Grow Faster
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Agenda
Why Is Customer Success A Business?What’s Your Business Plan?How Do You Measure Your Business?How Do You Accelerate Your Business?How Can Gainsight Help?Q&A
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Agenda
Why Is Customer Success A Business?What’s Your Business Plan?How Do You Measure Your Business?How Do You Accelerate Your Business?How Can Gainsight Help?Q&A
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
“The capital markets are going to change, sometimes they're going to reward growth, sometimes they're going to reward value, sometimes capital's cheap, sometimes it's expensive. The key is how do you build a sustainable business.”
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Transactional Economy Subscription Economy
Vendor Success
Customer Success
Vendor Success
Customer Success
The New Chasm
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Vendor
Can I get a reference?
Want to buy more?
Ready to renew?
Who are you
again?
Transactional Economy Subscription EconomySuccess
Retention
Advocacy
Expansion
Onboarding
Customer
The New Customer Lifecycle
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Agenda
Why Is Customer Success A Business?What’s Your Business Plan?How Do You Measure Your Business?How Do You Accelerate Your Business?How Can Gainsight Help?Q&A
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Success Maturity Model
17Revenue
Succ
ess
Mat
urit
y
Adoption
Retention
Expansion
Optimization
Transformation
$1 - $5 MM$5 - $20 MM
$20 - $100 MM$100 MM - $1 B
$1 B+
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Agenda
Why Is Customer Success A Business?What’s Your Business Plan?How Do You Measure Your Business?How Do You Accelerate Your Business?How Can Gainsight Help?Q&A
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
MARKETING
SALES
RETENTION
Customer Success for the Board
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
MARKETING
SALES
SUCCESS
Customer Success for the Board
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Nail the Board Meeting3 Simple Steps
Sales Customer Success
Past Bookings Renewals / Up-Sell
Present Market Share Benchmark
Future Pipeline Health Score
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
PastFive Metrics That Matter
1. Batting Average2. Headwind3. Tailwind4. Net Revenue Retention5. Magic Number
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Past1. Batting Average
# Customers Renewed In Period
÷# Customers Renewable In
Period
Are customers voting with their signature on the
value of your product or service?
Best-in-class:> 90%
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Past2. Headwind
ARR/MRR of churn dollars including price decreases
and downgrades
÷Beginning of period
ARR/MRR
How much drag do you have on your growth?
Best-in-class:< 10%
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Past3. Tailwind
ARR/MRR of up-sell dollars including price increases
and upgrades
÷Beginning of period
ARR/MRR
How much acceleration do you have to new
bookings?
Best-in-class:> 20%
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Past4. Net Revenue Retention
Beginning of period ARR/MRR + ARR/MRR from tailwind – ARR/MRR from headwind
÷Beginning of period ARR/MRR
What’s the net dollar impact
from Customer Success?
Best-in-class:> 120%
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Past5. Magic Number
ARR/MRR of renewals in period + ARR/MRR of up-
sells in period
÷Fully-loaded cost of
Customer Success team + extended team
What’s the cost-effectiveness of
Customer Success?
Best-in-class:3-5X or higher
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Lagging IndicatorsLeading Indicators
Too LateChurn
SilenceChurn inquiry
Late paymentsNo product usage
FrustrationLow NPS scores
Long support TTRNot referenceable
DisengagedNot opening emailsDeclining adoption
Sponsor leaves
Success“Sticky” feature usage
Proven ROIIncreasing adoption
FutureCustomer Health Indicators
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved. Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
FutureCustomer Health Scorecard
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Adop
tion
Up-Sell / Renewal
Unhealthy Customer
Cohort
Healthy Customer
Cohort
FuturePredictive Analytics
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Agenda
Why Is Customer Success A Business?What’s Your Business Plan?How Do You Measure Your Business?How Do You Accelerate Your Business?How Can Gainsight Help?Q&A
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
3+1 CSM Growth Hacks
1. Create a sales pitch for your Success program2. Develop a scorecard and share with client regularly3. Define an early warning process
+1: Celebrate Customer Success like you do Sales
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Agenda
Why Is Customer Success A Business?What’s Your Business Plan?How Do You Measure Your Business?How Do You Accelerate Your Business?How Can Gainsight Help?Q&A
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Cont
ract
Si
gnat
ure Contract
ExpiryPr
oacti
veRe
activ
e
Welcome Call
User Training
QBR
Low User-Level
Adoption
Detractor NPS
Survey
New Feature Demo
Customer Check-In
QBR & Save Play
Customer Check-In
New Feature Demo
QBR
Renewal Preparati
onRenewal Negotiati
on
Multiple Support Tickets
Executive Sponsor Change
Competitive Threat
Positive NPS
Survey
Usage @ 70%
Usage @ 95%
Retention / Expansion RenewalAdoptionOnboard
Customer Health Score100
0 Best Practice Analysis
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Agenda
Why Is Customer Success A Business?What’s Your Business Plan?How Do You Measure Your Business?How Do You Accelerate Your Business?How Can Gainsight Help?Q&A
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Nick MehtaCEO
Gainsight
Ajay AgarwalManaging Director
Bain Capital Ventures
Q&A
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
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