Your SlideShare is downloading. ×
0
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
The ROI of CSM Solutions
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The ROI of CSM Solutions

2,842

Published on

Gainsight's customers benefit from a CSM Solution

Gainsight's customers benefit from a CSM Solution

Published in: Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,842
On Slideshare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Hi everyone and welcome to today’s discussion The ROI of Customer Success Management Solutions. We have some great content and even better speakers. Before we dive in, a few quick items of housekeeping.
  • With that, please welcome our panelists. Sitting next to me is Anthony Kennada. We’re joined by our guests from Mainstay Company - an independent analyst firm specializes in building ROI stories. As Gainsight customers mature in their Customer Success investments, Mainstay works with them to quantify and share their stories. Craig LeGrande is the managing director and a co-founder of Mainstay Company LLC. He has served as senior advisor to leading companies in the automotive, retail and high technology industries, helping them identify new market opportunities and develop effective capital investment strategies. The author of more than a hundred case studies and research papers for high-technology leaders such as Oracle, SAP, EDS, BearingPoint, EMC, and Network Appliance, Mr. LeGrande is an expert at proving business value by means of objective, quantitative evidence and analysis. L.Venkatraman (LV) is a Vice President of Consulting at Mainstay and works closely with CIOs and CTOs of large hi-tech companies as well as start-ups to help them articulate the value of technology solutions. LV helps Mainstay’s clients combine the power of the ‘economics of IT’ with creative / compelling communication methods. He has served in senior management positions with well-known IT Systems Integrators, leading large global business units that deliver IT solutions to clients. With that, I’ll hand it over to Anthony.
  • I feel almost silly explaining to CSMs why ROI is important to their jobs. There are clearly a lot of factors that define the customer success role, but ROI really is at the heart of customer success The question to ask yourself in this context is: How much value are you providing your customers? So with that, there really are three things to think about when it comes to customer value creation.
  • Three R’s of Value Creation for Customer Success Revenue Ex: How much bottom line dollars are you able to drive based on the successful adoption of your solution? Renewing? Buying more products / modules / services? Advocates? You made promises during the sales process on ROI impact and you owe it to your customers to be transparent along the way. Resources Ex. How effective is your team in getting their job done? Efficiency metrics like the number of alerts they’re able to resolve, the time it takes for them to close them out, and the number of incremental customers they’re able to touch as a result. Optimizing efficiency is incredibly important from an operational perspective, but be ready to defend how it impacts your revenue value as a team. This is where a technology solution can be useful in correlating the two data points. Relationship Ex. How can you quantify the intangible aspects of the customer? Brand engagement, champion mobility, number of references they give you. When a sponsor leaves, that’s a huge reason why customers churn. How can you use data that is readily available, although siloed externally, to get ahead of that conversation with the stakeholders still there?
  • Tie ROI of your product back to the strategic goals for your customer. QBRs, Executive Briefings or Regular Updates Transparency is king
  • That’s where Gainsight comes in. We help leading businesses in the subscription economy integrate ALL sources of customer data, use data science to score customers and trend their health, and then provide the operational workflow to take action in order to prevent the churn event, get the up-sell done, or otherwise ensure that customers are getting value from your product or service.
  • We make it simple for you to communicate ROI to your customers in real time, and in that spirit, we want to take some time to show you the ROI that our customers are realizing by using Gainsight to manage their Customer Success efforts. I’m going to hand it over to Craig and LV from Mainstay Company to detail the findings of their study of Gainsight customers.
  • Thanks Craig and LV. We look forward to having more of our customers share their incredible results as we continue our ongoing assessments.
  • So for those of you who are either a) looking for a way to get started, or b) not quite ready to buy technology but are looking for ways to quantify its impact as a means of building the business case, we’ve got a great solution to share.
  • Transcript

    • 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 2014 Gainsight, Inc. All rights reserved.
    • 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.

    ×