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DESCRIPTION
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.
Citation preview
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Turning Your
Revenue Funnel into
an Hourglass
2014January
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Why?
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Friction for a Customer to Join
Friction for a Customer to
Leave
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
MARKETING
SALES
RETENTION
Rethinking the B2B Funnel
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
MARKETING
SALES
SUCCESS
The B2B Hourglass
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Best in Class SaaS companies generate a 15-20% uplift in revenue by protecting your customers; delivering extreme company valuation
Yr 1 Yr 2 Yr 3 Yr 4300
350
400
450
500
550
Status QuoIncremental Revenue
In M
illio
ns ~$69M
Grow Faster
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Get Valued Higher
Increase Drive
2% Retention
2% Up-sell
20% Multiple
28% Multiple
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Be More Aggressive
Raise LTV
Push CAC
Frontier
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
How?
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Key Questions I Get
PeopleObjectivesStrategyTechnology
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Success Maturity Model
11
Revenue
Su
ccess M
atu
rity
Adoption
Retention
Expansion
Optimization
Transformation
$1 - $5 MM
$5 - $20 MM
$20 - $100 MM
$100 MM - $1 B
$1 B+
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
People
12
Revenue
Su
ccess M
atu
rity
Adoption
Jack of all trades
Retention
CSM exec
Domain expertise
Expansion
Alignment with sales & marketing
Optimization
Tiering service and
costs
Transformation
Trusted advisor
$1 - $5 MM
$5 - $20 MM
$20 - $100 MM
$100 MM - $1 B
$1 B+
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
People: Resource
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Objectives
14
Revenue
Su
ccess M
atu
rity
Adoption
Health Score
Retention
HeadwindCSM Batting
Average
Expansion
TailwindNet Renewal
Rate
Optimization
CSM Magic Number
Transformation
% Multi-Product
$1 - $5 MM
$5 - $20 MM
$20 - $100 MM
$100 MM - $1 B
$1 B+
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Objectives: Resource
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Strategy
16
Revenue
Su
ccess M
atu
rity
Adoption
Health Score
Retention
Early Warning
Expansion
Up-Sell Trigger
Optimization
Tier Offerings
Transformation
Strategic Up-leveling
$1 - $5 MM
$5 - $20 MM
$20 - $100 MM
$100 MM - $1 B
$1 B+
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Lagging IndicatorsLeading Indicators
Too Late
Churn
Silence
Churn inquiryLate payments
No product usage
Frustration
Low NPS scoresLong support TTR
Lots of support cases
Disengaged
Not opening emailsDeclining adoption
Sponsor leaves
Success
“Sticky” feature usageProven ROI
Increasing adoption
Strategy: Measure Health
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Purchase Renewal
Maximize Up-Sell
Flag Early Warnings
Measure Health
Cu
sto
mer
Healt
h
Strategy: Manage Lifecycle
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Strategy: Tier Offerings
High Touch
Low Touch
No Touch
JUST-IN-TIME(early warning, adoption, etc.)
AUTOMATED
(nurture, webinars, etc.)
PRO-ACTIVE
(QBR, Best Practices, etc.)
STRATEGY
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Strategy: Show ROI
Capture Customer Goals
Track Customer Goals
Show Progress Against Goals
Profit
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Strategy: Track Your Sponsors
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Strategy: Predict the FutureA
dop
tion
Up-Sell / Renewal
Unhealthy Customer
Cohort
Healthy Customer
Cohort
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Technology
24
Revenue
Su
ccess M
atu
rity
Adoption
Adoption Tracking
Retention
Workflow
Expansion
Predictive Analytics
Optimization
Customer Nurture
Transformation
QBR Prep
$1 - $5 MM
$5 - $20 MM
$20 - $100 MM
$100 MM - $1 B
$1 B+
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
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