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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