1. The ROI of
Customer Success
Management
Solutions
Febrary
2014
2014 Gainsight, Inc. All rights reserved.

2. Housekeeping
Q&A panel on your right
Recording for colleagues who couldn’t make it
All attendees will receive slides
Stick around til the end for a chance to win a CSM
ROI Value Assessment
• Twitter hashtag #customersuccess
•
•
•
•
2014 Gainsight, Inc. All rights reserved.

3. Today’s Panelists
Anthony
Kennada
Head of Marketing Gainsight
Craig LeGrande
Managing Director & Cofounder –
Mainstay Company
L. Venkatraman
VP Consulting, Mainstay
Company
2014 Gainsight, Inc. All rights reserved.

4. To a CSM
ROI
2014 Gainsight, Inc. All rights reserved.

5. HOW MUCH VALUE ARE YOU
PROVIDING YOUR CUSTOMERS?
2014 Gainsight, Inc. All rights reserved.

6. 3 R’s of Value Creation
Revenue
Resources
Relationship
2014 Gainsight, Inc. All rights reserved.

7. Tie It Back
2014 Gainsight, Inc. All rights reserved.

8. But It’s Been Hard
2014 Gainsight, Inc. All rights reserved.

9. THERE’S A BETTER WAY
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10. The Solution
2014 Gainsight, Inc. All rights reserved.

11. ROI Research
Data Collection
Information
Gathering
Week 1
Draft/Finalize White Paper
Content
Value Tree Development/
Summary PPT Development
Week 2-3
Graphics/Final
Production
Week 6-7
Week 4-5
Kickoff Meeting
Scope Interview
Candidate List
with HS
Conduct Interviews
Request/Collect
Existing Materials
Develop
Interview Guide
Review/Approve
Messaging with
Stakeholders
Draft Value Tree/ Summary PPT
Draft
Whitepaper
Review with
Stakeholders
A
Refine/Adjust
based on
Feedback
Refine/Adjust
based on
Feedback
PDF/
Graphics
Creation

12. Gainsight ‘Value Tree’
>$3M annual revenue lift and $1-$5M annual operational expense savings
12

13. THE DETAILS

14. Gainsight improved Retention and Cross-Sell Revenues by
over $11M over a 3-year time frame
•
Gainsight clients interviewed had a
customer base of between 1400 and
4500 customers
•
They reported that churn rates
reduced to less than 2-3%, a 5-10X
reduction from before Gainsight.
•
The average revenues for these
Gainsight clients was about $4K per
month per customer
• This represents a $11M
revenue lift over a 3-year
timeframe

15. Gainsight customers also realized $1M-$5M annual savings in
operational expenses
•
Gainsight clients interviewed had a customer base
of between 1400 and 4500 customers
•
On an average, they prepare 2 reports per
customer, twice a month
•
For a customer base of 1400, that means 2800
person hours per month, which would require about
17-20 CS resources, or about $1M investment in
staff per year. For a larger customer base or for
companies that do more outreaches, these savings
can be as high as $5M
• This represents a $1M annual
savings in operational expenses

16. Gainsight drove more valuable relationships
3X customer outreaches and 3X richer reports

17. Gainsight customers reduced risk of churn with
proactive intervention in the first 90 days
• Newly acquired customers (<90 days)
are most at-risk but expensive to
monitor manually since their revenues
may be small / still growing compared to
larger more mature accounts.
• Gainsight made it cost-effective for its
clients to do this critical piece.

18. Customers are creating the scalability to handle
customer base growth
For every 1,000 customers added, Gainsight
clients will need 15–20 fewer CSMs, or $1M less
annually.

19. THE ATTRIBUTION

20. The Customer Success Management Journey
Reduce
churn & drive
up-sell
revenue
Scale
customer
success
team
Strengthen
customer
engagement

21. We understand our customers in
more ways than just the old segments
– households, small and large
enterprises. Gainsight has helped us
segment customers in different ways
Without any CSM, customer
churn would have been in
double digits, but Gainsight
can reduce churn by over
50% to just a few %
Gainsight saves us 3000
person hours every month
in data preparation time
for customer retention
meetings. That’s about
$1M per year avoidance
Before Gainsight, it was
always 'the hot customer
of the week', now it is ARR
and customer-health
based
For CSM
automation,
SFDC cannot
become
Gainsight
Gainsight also helps with
cross-sell by tracking out of
compliance customers,
which has resulted in
hundreds of thousands of
dollars of revenue per
quarter additional revenue
The general assumption is that large
customers need attention. However, in our
case there is a huge # of new customers
(<90 days) that are still adopting the
product and therefore high risk for churn.
It is expensive to service these customers
and this is where Gainsight automation
helps
We were able to
cross-sell / upsell
10% more thanks to
Gainsight
Before Gainsight, CSM reports
were pieced together in SFDC
and we only had 1/2 the
number of reports and much of
the information required going
to multiple places.
2014 Gainsight, Inc. All rights reserved.

22. APPENDIX: EXAMPLE OF HOW A GAINSIGHT
CUSTOMER REALIZES VALUE
600
1000
1400
3000
30*
# customers
$48K
# data points reported per report
$90K
$72K
Average annual revenue per customer
1 hour
2 hours
3 hours
4 hours
1
400*
1200 per week**
Number of customer outreaches with CSM reports
>10 % points
$1M
4
# of ’CSM’ conversations per customer per month
10
25-30
# CSMs required per 1000 customers, if done manually
Time spent on CSM reports per report
2-3 % points ($10M)
100
10
25-30
# CSMs required per 1000 customers, if done manually
$2.4M
$100,000 per quarter
$1.2M per year
Churn reduction & Revenue Lift (3 years) Opex Savings (data preparation) per year Additional cross-sell / upsell revenue generat
*(before Gainsight)

23. HOW TO GET STARTED
2014 Gainsight, Inc. All rights reserved.

24. CSM ROI Assessment
• 2 Winners from
Attendees
• 2-3 week study
• Data workshop
• Growth & Churn
Assessment
• Custom ROI Model
2014 Gainsight, Inc. All rights reserved.

25. QUESTIONS
SALES@GAINSIGHT.COM
NEXT WEBINAR: BIT.LY/1FK0JV2
2014 Gainsight, Inc. All rights reserved.

26. Thanks For Joining!
2014 Gainsight, Inc. All rights reserved.