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1. ©2016 Gainsight.
HOW WE RE-SEGMENTED
OUR CLIENTS USING
ADOPTION & NPS
NICK MEHTA
CEO
Gainsight
ANNIE TSAI
Chief Customer Officer
DoubleDutch
®2016 Gainsight.

2. ©2016 Gainsight.
How we arrived to segmentation
What our segmentation looks like now
What you can learn from Adoption & NPS
Analysis Takeaways & Next Steps
Segmentation Strategies at DoubleDutch
Agenda

3. ©2016 Gainsight.®2016 Gainsight.
How We Arrived to Segmentation

4. ©2016 Gainsight.
How: Ex-Ante vs. Ex-Post
Name Lead Opportunity Customer
Ex-ante (e.g., employees)
- Know little about each potential customer
- Can make decisions about market
- Can optimize end-to-end
Ex-post (e.g., package purchased)
- Know a lot about each client
- Can tailor segments finely
- Can’t optimize pre-customer operations

5. ©2016 Gainsight.
How: Proxy Variable
Many Variables <=> Customer Value / Effort
• CSM org structure, revenue, growth rate, profitability,
business model, CRM, operational sophistication,
company age, exec experience, …
Need to Pick Few Proxy Variables
• Best match to underlying variables
Proxy Variable Characteristics
• Objective
• Readily-available

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How: Proxy Variable – Employees
Pros
• Correlated with complexity
• Correlated with value
• Objective
• Readily available
Cons
• Changes rapidly
• Revenue / employee varies

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How: Employee Bands – Ideal
Employees
Value/Effort
Band 1
Band 2
Band 3
Band 4
Ideal employee
bands would be
where value /
effort curve is
discontinuous

8. ©2016 Gainsight.
How: Org Structure Hypothesis
Value / effort is
discontinuous when
fundamental company
org structure changes

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How: 2-Level Org
Value
• Funding: Seed
• Customers: Insignificant
• Perceived Value: Very low
• CSMs: ~1
Effort
• Product: Adoption tracking
• Service: Advice
• CRM: Likely none
• Team: No CSM exec, ops

10. ©2016 Gainsight.
How: 3-Level Org
Value
• Funding: A/B
• Customers: Small base
• Perceived Value: Low
• CSMs: 2-4
Effort
• Product: Adoption, NPS
• Service: Advice, coaching
• CRM: Likely none or immature
• Team: No CSM exec, ops

11. ©2016 Gainsight.
How: 4-Level Org
Value
• Funding: B/C
• Customers: Meaningful
• Perceived Value: Medium
• CSMs: 5-15
Effort
• Product: + simple workflow
• Service: Best practices
• CRM: SFDC but raw
• Team: First-time exec, no ops

12. ©2016 Gainsight.
How: 5-Level Org
Value
• Funding: C/D
• Customers: Large
• Perceived Value: High
• CSMs: 16-50
Effort
• Product: Advanced workflow
• Service: Customized
• CRM: More mature SFDC
• Team: Experienced exec, ops

13. ©2016 Gainsight.
How: 6-Level Org
Value
• Funding: Public
• Customers: Very Large
• Perceived Value: Across divs
• CSMs: 51+
Effort
• Product: Process consistency
• Service: Transformation
• CRM: Legacy or multiple
• Team: Experienced exec, ops

14. ©2016 Gainsight.®2016 Gainsight.
What Our Segmentation Looks Like Now

15. ©2016 Gainsight.
What: Bands with 7:1 Employee:Manager Fanout
Org Structure Employee Start Employee End
2-level 2 8
3-level 9 57
4-level 58 400
5-level 401 2801
6+-level 2802 +

16. ©2016 Gainsight.
What: Rounded Bands
Org Structure Employee Start Employee End
2-level 2 8  10
3-level 9  11 57  100
4-level 58  101 400
5-level 401 2801  3000
6+-level 2802  3001 +

17. ©2016 Gainsight.
What: Rounded Bands
Org Structure Employee Start Employee End
2-level 2 10
3-level 11 100
4-level 101 400
5-level 401 3000
6+-level 3001 +

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19. ©2016 Gainsight.
What: Segment Names
Org Structure Planet Employee Start Employee End
2-level Pluto
(is it really a planet?)
2 10
3-level Mercury
(fast-moving)
11 100
4-level Mars
(closest to Earth)
101 400
5-level Venus
(similar to Earth)
401 3000
6+-level Jupiter
(biggest planet)
3001 +

20. ©2016 Gainsight.
Mercury
14%
Mars
26%
Venus
44%
Jupiter
16%
Installed Base Snapshot TAM: Long-Term ASPs
Pluto
1%
Mercury
18%
Mars
32%
Venus
29%
Jupiter
20%
Pluto,
1%
Mercury,
4%
Mars,
15%
Venus,
23%
Jupiter,
57%
EOQ Pipeline Snapshot

21. ©2016 Gainsight.®2016 Gainsight.
Learnings from Adoption & NPS

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23. ©2016 Gainsight.
Mercury
48
Mars
41
Venus
52
Jupiter
63
Mercury Mars Venus Jupiter
0
10
20
30
40
50
60
70
80NPS Responses from FY17
Highest NPS in enterprise
and mid-market; product
still evolving to meet
customer needs.

24. ©2016 Gainsight.

25. ©2016 Gainsight.
Mercury,
49%
Mars, 36%
Venus, 33%
Jupiter, 30%
Mercury Mars Venus Jupiter
0%
10%
20%
30%
40%
50%
60%
% of Customers at Super Active Adoption Level
Highest adoption in SMB;
less change management,
product requirements;
enterprise newer

26. ©2016 Gainsight.
Renewals
Segment
Logo
Ren. Rate
Gross
Ren. Rate
Net
Ren. Rate
Ann Logo
Ret. Rate
Ann Gross
Ret. Rate
Ann Net
Ret. Rate
Mercury
Mars
Venus
Jupiter
Overall
Quarterly segment-level renewal rates not yet meaningful statistically; big up-sell in Jupiter.

27. ©2016 Gainsight.®2016 Gainsight.
Analysis Takeaways & Next Steps

28. ©2016 Gainsight.
Segment Analysis Takeaways
Jupiter long term opportunity, material upsell today, proven
adoption still early
Mars & Venus majority of installed base and pipeline, our
happiest customers, strong adoption, need rigorous
readiness process
Mercury high adoption, TAM is small, satisfaction is lower

29. ©2016 Gainsight.
What’s Next
• Each segment critical to success
• Jupiter is most “net new”
• Learn segments
• Use segments
• Don’t use same strategy everywhere
“If all you own is a hammer…”

30. ©2016 Gainsight.
Segment Strategy
Segment Packaging Marketing Sales Onboarding
Recommended
CSM
Mars Bundled Inbound
Hunter / Farmer
with Geo
Territories
Express /
Express On-
Demand
Standard or
Premier
Venus Modular
Inbound /
Outbound
Field with Geo
Express, Partner
or Custom
Premiere or
Premier+
Jupiter Modular Outbound Field with Geo
Custom, Onsite
or Partner
Premier+

31. ©2016 Gainsight.
Segment Teams
Engineering
Jupiter
features
Venus
features
Mars
features
Product -
Jupiter
Product -
Venus
Product -
Mars
Marketing -
Jupiter
Marketing -
Venus
Marketing -
Mars
Sales -
Jupiter
Sales -
Venus
Sales -
Mars
Post-sales -
Jupiter
Post-sales -
Venus
Post-sales -
Mars

32. ©2016 Gainsight.®2016 Gainsight.
Segmentation Strategies at DoubleDutch

33. ©2016 Gainsight.
Segmentation Model Evolution
Stage 1:
Startup
Get it Out

34. ©2016 Gainsight.
Segmentation Model Evolution
Stage 1:
Startup
Stage 2:
PMF & Scale
Segment to
Align Customer
Success Against
Opportunity &
Scale the Rest
Get it Out

35. ©2016 Gainsight.
Segmentation Model Evolution
Stage 1:
Startup
Stage 2:
PMF & Scale
Stage 3:
Right/Right
Narrow Target
Based on
Segmentation
Learnings
Segment to
Align Customer
Success Against
Opportunity &
Scale the Rest
Get it Out

36. ©2016 Gainsight.
Learnings from 2015 Segmentation Model (phase 2)
1. Industry and Propensity mix caused challenges
(Associations, Strategic)
2. Advocacy and commercial accountability are
growing further apart
3. Customers who scale fund over-investment in
strategic business

37. ©2016 Gainsight.
DoubleDutch’s GTM Segmentation 2015
30% 80%
35% 15%
35% 5%
Maintenance
Transactional/
Self Serve
Growth
Channel
Enterprise
Strategic
Customer
Segments
Delivery Model
Pod Managed, Flat Renewal or Magic
Number Focused, L/M Touch
Pod/System Monitored, Flat Renewal or
Inbound Driven Expansion, L Touch
Pod Managed, Mid-Cycle Expansion
Focused, M/H Touch
Pod Managed, Train the Trainer & Sales
Enablement Focused, M/H Touch
Pod Managed, High POC & Volume
Weighted, Frequent Touch
Exec Sponsored, Expansion Weighted,
Frequent Touch, Named Account Team
% Base % Rev

38. ©2016 Gainsight.
DoubleDutch’s GTM Segmentation 2015
30% 80%
35% 15%
35% 5%
Maintenance
Transactional/
Self Serve
Growth
Channel
Enterprise
Strategic
Customer
Segments
Delivery Model
Pod Managed, Flat Renewal or Magic
Number Focused, L/M Touch
Pod/System Monitored, Flat Renewal or
Inbound Driven Expansion, L Touch
Pod Managed, Mid-Cycle Expansion
Focused, M/H Touch
Pod Managed, Train the Trainer & Sales
Enablement Focused, M/H Touch
Pod Managed, High POC & Volume
Weighted, Frequent Touch
Exec Sponsored, Expansion Weighted,
Frequent Touch, Named Account Team
% Base % Rev

39. ©2016 Gainsight.
DoubleDutch’s GTM Segmentation 2016
Strategic
Enterprise
Upper Mid-
Market
Sales
Segments
Diamonds

40. ©2016 Gainsight.
DoubleDutch’s GTM Segmentation 2016
What
Who
Why
Strategic
Enterprise
Upper Mid-
Market
Sales
Segments
Diamonds

41. ©2016 Gainsight.
DoubleDutch’s GTM Segmentation 2016
Brand Influence
Market Maturity
Diamonds
Beginning
ARR
Platform
Buy
Perceived
TAM
ProductTier
What
Who
Why
Strategic
Enterprise
Upper Mid-
Market
Sales
Segments
Levers
Diamonds

42. ©2016 Gainsight.
DoubleDutch’s GTM Segmentation 2016
Brand Influence
Market Maturity
Diamonds
Beginning
ARR
Platform
Buy
Perceived
TAM
ProductTier
What
Who
Why
Strategic
Enterprise
Upper Mid-
Market
Diamonds
Strategic
Enterprise
Upper MM
Self Service
Exec Sponsored, Expansion
Weighted, High Touch,
Named Account Team
Pod Managed, High POC &
Volume Weighted, Frequent
Touch
Pod Managed, Mid-Cycle
Expansion Focused,
M/H Touch
Tech Touch, Flat Renewal &
Platform Lead Cycle
Sales
Segments
Levers
Customer
Segments
Delivery
Model

43. ©2016 Gainsight.
DoubleDutch’s GTM Segmentation 2016
% Base % Rev
% Rev
Target
Offering
Design
Strategic
Enterprise
Upper MM
Self Service
Exec Sponsored, Expansion Weighted,
High Touch, Named Account Team
Pod Managed, High POC & Volume
Weighted, Frequent Touch
Pod Managed, Mid-Cycle Expansion
Focused, M/H Touch
Tech Touch, Flat Renewal & Platform
Lead Cycle
15% 40% 70% 70%
20% 25% 15% 15%
35% 20% 10% 10%
30% 15% 5% 5%

44. ©2016 Gainsight.
Org Design to Support Phase 3
CCO EMEA CE Head
Global Customer Experience
Customer Success
Channel Success
Success Programs
Technical Delivery
Services Delivery
Tier 1 / 2 / 3
Customer Enablement
Support & Training
Programs
Success DeliveryCustomer Success

45. ©2016 Gainsight.®2016 Gainsight.
Questions?

46. ©2016 Gainsight.
THANK YOU
®2016 Gainsight.