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Gainsight Pulse Presentation by Tom Tunguz

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Demonstrates the impact of customer success on a hypothetical startup's revenue and cash needs over time.

Gainsight Pulse Presentation by Tom Tunguz

  1. Tomasz Tunguz Partner, Redpoint Ventures • I write about SaaS startups at tomtunguz.com • Redpoint works with many as-a-Service companies including Stripe, Twilio, Zuora, Zendesk, Looker, Infer, Tidemark, and Expensify • Former PM at Google; statistics nut
  2. Why CS Is Critical Happy customers, better product Grow faster Decrease capital needs
  3. Hypothetical SaaS Company $50k in MRR 50 customers at $1k ARR each $1250 in CAC, Sales Efficiency of 0.8 Growing 15% m/m
  4. How Much to Spend on CS? Expected Value = Save Rate x Value of Extension = 30% x 12 months x $83/month = $298 or about 30% of ACV
  5. Return on Investment? 2 pp decrease in churn - Increases revenue by 50% - Decreases S&M spend by 30%

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