How can you measure the value of customer success to your organization? What is the actual bottom-line dollar value customer success will have for your company? Join Dan Steinman, Chief Customer Officer at Gainsight, and special guest Kate Leggett, VP and Principal Analyst at Forrester Research to learn the answers to these questions and more. Dan and Kate will discuss the economic value customer success has had on various industries and what potential value it holds for the future of your company. This data-driven-webinar will cover topics such as: The economic value model of customer success for SaaS, financial services, and other industries How to lead your company in customer success The benefits of adopting customer success as an organization

1. ©2015 Gainsight. All Rights Reserved.
IS CUSTOMER SUCCESS
WORTH IT?
Featuring:

2. ©2015 Gainsight. All Rights Reserved.
Dan Steinman
Chief Customer Officer
Gainsight
Kate Leggett
Vice President & Principal Analyst
Forrester
Featuring:

3. ©2015 Gainsight. All Rights Reserved.

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9. Transactional Economy Subscription Economy
Vendor
Success
Customer
Success Vendor
Success
Customer
Success
The New Chasm

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Source: September 12, 2014 “The CIO’s Blueprint For Strategy In The Age Of The Customer” Forrester report
Customers Control the Conversation That They Have
with Businesses

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Our World Is Moving To A Subscription Economy
Credit: www.zuora.com

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January 2014 “TechRadar™: Software-As-A-Service, Q1 2014”
The Subscription Model Has Tipped For Many B2B
Software Categories

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The SaaS Boom for B2B Software Shows No Sign Of
Slowdown

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EVERYTHING Will Be Part Of The Subscription
Economy

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And Because Of This Relationships - And Outcomes -
Are Becoming More Important
Product Focused Relationship Focused

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Onboarding
Driving adoption
Recognizing expansion
opportunities
Manage The Customer’s Journey With Your Product
During Their Lifecycle
Converting trials

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Source: June 27, 2014 “What Drives A Profitable Customer Experience” Forrester report
Good Customer Experiences are Good for Business
Retention
loyalty
Enrichment
loyalty
Advocacy
loyalty
The likelihood that a
customer will keep existing
business with the
company
The likelihood that a
customer will buy
additional products and
services from the
company
The likelihood that a
customer will
recommend the
company to others

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Customer success managers actively
manage customer relationships to
reduce churn, increase existing
revenue and influence new sales

20. Customer
success
reduces churn

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As companies grow, revenue from existing
customers becomes a larger and larger part
of the company’s economic value

22. Power Shift

23. David Skok
Matrix Partners http://www.forentrepreneurs.com/why-churn-is-critical-in-saas/
Customer
Success Drives
First-order
Growth

24. ©2015 Gainsight. All Rights Reserved. Source: http://www.saastr.com/its-not-just-cltv-its-your-trgcltv-that-matters-total-all-in-revenue-
generated-by-your-customer/
Customer Success Drives Second-order Growth

25. ©2015 Gainsight. All Rights Reserved.
0x
5x
15x
20x
EV/RevenueMultiple
Dollar Net Renewal Rate
60% 70% 80% 90% 100% 110% 120%
Source: Altimeter and FactSet 10/2014
10x 7X
15X
Customer Success Drives Third-order Value

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CUSTOMER
SUCCESS
STRATEGY
CUSTOMER
SUCCESS
DATA
CUSTOMER
SUCCESS
PROCESSES
CUSTOMER
SUCCESS
MANAGERS
Customer Success Takes Coordinated Effort Across
Four Dimensions

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Not All Customers Get Equal Treatment
Strategic
Accounts
Commercial Accounts
Value Accounts

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Not All Customers Get Equal Treatment
Strategic
Accounts
Commercial Accounts
Value Accounts
High Touch
QBR. Health checks
Best practice education
Minimal level of automation
Low Touch
Automated interactions
Best practice education
Automated Touch
Webinars
Newsletters
Campaigns

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Leverage The Insights Gathered From Data And Create
Success Workflows
DATA
INSIGHTS
WORKFLOW
Aggregation
Cleansing
Visualization
Segmentation
Personalization
Discovery
Map to the customer journey:
Onboarding
Adoption
Retention

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Choose The Right Profile For A Customer Success
Manager
Passionate for serving customers
Relationship builders
Well organized and good listening
skills
Good at conflict resolution
Proactive and can-do attitude
Technical enough
Best practice knowledge
Domain expertise
Work at all levels of an organization

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Customer Success Benefits: If Done Right Delivers
Predictable Outcomes
For Users
› Onboarding and product adoption
• Who is using product? Who is not?
• How to intervene to successfully onboard
users
› Best practice adoption and retention
• What features are being used?
• Are stickiest features being used?
• Are features used the right way
For Stakeholders
› Quantify the value of the product and how it
helps realize business goals
• How is product being used?
• What was the products-time-to-value
• What is the return on investment
• What adjustments to contracts make sense
› Risk management
• Early warnings
• Intervention workflows

32. ©2015 Gainsight. All Rights Reserved.

33. ©2015 Gainsight. All Rights Reserved.
Demonstrate the value you deliver
to your customers to promote
adoption, advocacy, and growth
DEMONSTRATE
Value
How Will You Measure Success in 2016?
5 Pillars of Customer Success
Build a consistent, effective customer
journey through one-to-many strategies
and high-impact, timely one-on-one
interactions
OPERATIONALIZE
Customer Lifecycle
Build a customer-focused organization
by improving cross-functional
coordination and measuring impact
Make it easy to spot and act on
opportunities for growth and candidates
for advocacy
DEMONSTRATE
Value
OPERATIONALIZE
Customer Lifecycle
ENABLE
Cross-functional Visibility
DRIVE
Expansion & Advocacy
Proactively identify signs of
customer risk and collaborate
cross-functionally to address
issues
MANAGE
Customer Risk

34. ©2015 Gainsight. All Rights Reserved.
We don’t have a consistent way
to track customers’ goals
throughout their lifecycle
We don’t have a scalable way
to show customers how they
use our product/service
We are seeing churn due to
customers not seeing ROI or
business value
We need to give management
visibility into CSM efforts and
impact
We need a way to report on
retention, upsell, and churn
We need a way to forecast
retention, upsell, and churn
We don’t know which accounts
are at risk, and which we can
impact or de-prioritize`
We are seeing churn due to low
adoption
We are seeing churn due to
low-value adoption (e.g. not
using new or advanced
features)
We are seeing churn due to
functionality gaps in the product
We are seeing churn due to
product stability or quality
issues
We are seeing churn due to
poor customer satisfaction
We are seeing churn due to loss
of our key customer champion
We are seeing churn due to
customer service issues
Our field reps and execs are
sometimes blindsided by
customer risks
Our sales reps and account
managers are sometimes
blindsided by customer risks
during a sales cycle
We don’t have a consistent view
of customer health across our
company
We don’t know what’s driving
risk and success in our
customer base
We need a way to track
customer relationships across
complex customers, multiple
products
We need a consistent way to
schedule, and get reminded of,
regular customer interactions
such as EBRs and renewals
We are seeing customer
satisfaction issues due to poor
hand-offs from sales to CSM
We spend too much time
preparing for Executive
Business Reviews
CSMs have too many repetitive
interactions with customers
It takes customer-facing team
members too long to prepare
for customer meetings
We need to increase the ratio
of accounts a CSM can handle
and reduce the skill set
required of a CSM to make
CSM more cost effective
We don’t know which
customers to use as references
and in marketing activities
We have no way to track our
sponsors as they go to new
companies in a scalable way
We don’t know which
customers are trending toward
needing more capacity
It’s too manual for us to spot
customer overages
We don’t know which
customers are good candidates
for upsell
We don’t know how to turn
happy customers into
advocates
Business Challenges
OPERATIONALIZE
Customer Lifecycle
MANAGE
Customer Risk
DRIVE
Expansion & Advocacy
ENABLE
Cross-Functional
Visibility
DEMONSTRATE
Value
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35. ©2015 Gainsight. All Rights Reserved.©2015 Gainsight. All Rights Reserved.

36. ©2015 Gainsight. All Rights Reserved.
Kate Leggett
Vice President & Principal Analyst
Forrester
@kateleggett
kleggett@forrester.com
Dan Steinman
Chief Customer Officer
Gainsight
@dantsteinman
dsteinman@gainsight.com
Questions?