The "sales funnel" is played out; it's time for a new metaphor. In this presentation, Gainsight CEO Nick Mehta talks about a more appropriate metaphor - the hourglass - that represents accurately the value to the company around both the customer acquisition process, but also the retention and expansion of those customers to grow revenue. The most successful Enterprise SaaS companies know that growing revenue only through new customer acquisition is the less efficient way to scale. Rather, they understand that growing revenue within your existing customer base - through up-sells, cross-sells, and expanded use - is the most profitable way to scale. In fact, Enterprise SaaS companies that grow revenue - and company valuation - by expanding revenue within their existing customer base also know the key to making this work is to focus on - and operationalize - Customer Success.

1. Turning Your
Revenue
Funnel into an
Hourglass
January
2014
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

2. Why?
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

3. Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

4. Rethinking the B2B Funnel
MARKETING
SALES
RETENTION
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

5. The B2B Hourglass
MARKETING
SALES
SUCCESS
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

6. Grow Faster
Best in Class SaaS companies generate a 15-20% uplift in revenue by
protecting your customers; delivering extreme company valuation
550
In Millions
500
~$69M
450
400
Status Quo
Incremental Revenue
350
300
Yr 1
Yr 2
Yr 3
Yr 4
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

7. Get Valued Higher
Increase
Drive
2% Retention
20% Multiple
2% Up-sell
28% Multiple
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

8. Be More Aggressive
Raise
LTV
Push
CAC
Frontier
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

9. How?
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

10. Key Questions I Get
People
Objectives
Strategy
Technology
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

11. Success Maturity
Success Maturity Model
Transformation
Optimization
Expansion
$1 B+
Retention
Adoption
$100 MM - $1 B
$20 - $100 MM
$5 - $20 MM
$1 - $5 MM
Revenue
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
11

12. People
Success Maturity
Optimization
Retention
Adoption
Jack of all
trades
CSM exec
Domain
expertise
Expansion
Alignment
with sales &
marketing
Tiering
service and
costs
Transformation
Trusted
advisor
$1 B+
$100 MM - $1 B
$20 - $100 MM
$5 - $20 MM
$1 - $5 MM
Revenue
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
12

13. People: Resource
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

14. Objectives
Success Maturity
Transformation
Expansion
Retention
Adoption
Health Score
Headwind
CSM Batting
Average
Tailwind
Net Renewal
Rate
Optimization
CSM Magic
Number
% MultiProduct
$1 B+
$100 MM - $1 B
$20 - $100 MM
$5 - $20 MM
$1 - $5 MM
Revenue
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
14

15. Objectives: Resource
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

16. Strategy
Success Maturity
Transformation
Expansion
Retention
Adoption
Optimization
Strategic Upleveling
Tier Offerings
Up-Sell
Trigger
$1 B+
Early Warning
$100 MM - $1 B
$20 - $100 MM
Health Score
$5 - $20 MM
$1 - $5 MM
Revenue
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
16

17. Strategy: Measure Health
Frustration
Churn
Lagging Indicators
Success
Low NPS scores
Long support TTR
Lots of support cases
Too Late
“Sticky” feature usage
Proven ROI
Increasing adoption
Leading Indicators
Silence
Disengaged
Churn inquiry
Late payments
No product usage
Not opening emails
Declining adoption
Sponsor leaves
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

18. Strategy: Manage Lifecycle
Customer Health
Maximize Up-Sell
Measure Health
Purchase
Flag Early Warnings
Renewal
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

19. Strategy: Tier Offerings
STRATEGY
PRO-ACTIVE
(QBR, Best
Practices, etc.)
High
Touch
JUST-IN-TIME
(early
warning, adoption
, etc.)
Low Touch
AUTOMATED
(nurture, webin
ars, etc.)
No Touch
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

20. Strategy: Show ROI
Capture
Customer Goals
Profit
Track Customer
Goals
Show Progress
Against Goals
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

21. Strategy: Track Your Sponsors
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

22. Strategy: Predict the Future
Adoption
Healthy
Customer
Cohort
Unhealthy
Customer
Cohort
Up-Sell / Renewal
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

23. Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

24. Success Maturity
Technology
Optimization
Expansion
Adoption
Retention
Predictive
Analytics
Workflow
Adoption
Tracking
Transformation
QBR Prep
Customer
Nurture
$1 B+
$100 MM - $1 B
$20 - $100 MM
$5 - $20 MM
$1 - $5 MM
Revenue
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
24

25. Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.