©2016 Gainsight.

HOW WE TRACK OUR EFFECTIVENESS USING STRATEGIC METRICS

®2016 Gainsight.

Kelly DeHartDirector of Customer SuccessGainsight

Sonam DabholkarManager of Customer SuccessGainsight

©2016 Gainsight.

Agenda

Metrics to Track Effectiveness

Our Approach to Leading Indicators

Unexpected Twists

Impact & Benefits

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Metrics to Track Effectiveness

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1. Churn2. Renewal3. Expansion4. New Business

Metrics to Track Effectiveness

Lagging Outcomes

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1. Churn2. Renewal3. Expansion4. New Business

1. Resolve risk2. Facilitate training3. Answer product

questions4. Discuss best

practices5. Hold EBR6. Discuss new

offering7. Identify advocates

Lagging Outcomes

Activities

Metrics to Track Effectiveness

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1. Churn2. Renewal3. Expansion4. New Business

1. Adoption2. # Advocates3. Advocacy Events4. Leads Identified5. NPS/C-SAT6. Health score

Lagging Outcomes

Leading Indicators

Metrics to Track Effectiveness

1. Resolve risk2. Facilitate training3. Answer product

questions4. Discuss best

practices5. Hold EBR6. Discuss new

offering7. Identify advocates

Activities

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Our Approach

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1.Adoption2.# Advocates3.Advocacy Events4.Leads Identified5. NPS/C-SAT6. Health score

Key Metrics: Deep Dive

Leading Indicators

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Key Metric: Adoption (aka Habits)Customer Success needs a Metric to be responsible for, so we can understand and recognize performance.

Criteria we considered:

• Objectively Valuable: No one can contest the achievement

• A Discrete Unit: It’s clear when the achievement is complete

• Measurable: We can create a dashboard to track achievement

• Frequently Achieved: We can recognize achievements week-to-week

• Attributable to the CSM: CSM is primarily responsible

• Correlation with Financial Metrics: Will drive positive impact on renewal rate

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Key Metric: Adoption (aka Habits)Process employed:

• Determined appropriate thresholds for Adoption based on our knowledge of healthy & unhealthy usage

• How frequently are users are in the system?

• How many users are in the system vs. the total?

• How much are they using Sticky Features?

• 5 Levels of Habits:

Red Orange Yellow Lime Green

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Key Metric: Adoption (aka Habits)Process employed:

• Determined frequency of Habits snapshot as weekly

• Set Targets for improvement, based on % of customers we wanted to see in ‘Healthy Habits’

• Rolled out Quarterly Targets at Team Level first, then at Individual Level

• Began reporting on Habits in key meetings (CS, Leadership & Board)

Target = Move 20% of Yellow/Orange/Red Habits Customers to Green/Lime, on net

Net increase in Green + Lime

Initial # of Yellow/Orange/Red Customers≥

20%

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Key Metric: Net New Healthy Customers+14 customers into Green *

* Data is Illustrative

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Advocacy Opportunities Closed (Sales Reference, Case Study,

Speaking Engagement)

Customer Success Qualified Leads (Expansion)

Number of Advocates

Leading Indicator

* All Reported in Board Meetings

Other Metrics to Drive Financials

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Advocacy Opportunities Closed (Sales Reference, Case Study,

Speaking Engagement)

Customer Success Qualified Leads (Expansion)

Number of Advocates

New Business ARR influenced by Customer Sales References

Expansion ARR based on Customer Success Identified Leads

New Business ARR generated by Repeat Buyers

Leading Indicator Impact on Financials *

* All Reported in Board Meetings

Other Metrics to Drive Financials

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Aligning CSM Targets to Key MetricsCategory Metric Weight Timeframe Level

Lagging Gross Renewal Rate 25% Quarterly Team

Lagging Upsell Dollars 25% Quarterly Team

Leading Adoption:Habits Improvement 25% Quarterly Individual

Leading Advocacy Opportunities Closed 25% Quarterly Individual

©2016 Gainsight.

Showcasing CS Value to Executive Leadership & BoardMetric Status Q1 FY16 Actuals Q2 FY16 Forecast

Renewable ARR $ $

Gross Renewal % %

Net Renewal % %

Upsell ARR $ $

Upsells attributed to CS Qualified Leads X X

Advocacy X X

New Business: Closed Sales influenced by Advocacy $ $

New Business: Closed Sales influenced by Repeat Buyer $ $

NPS X X

Habits (% Green/Lime) % %

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Unexpected Twists

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Unexpected Twists EncounteredHabits

Nuances along the way have caused us to iterate on the process:

• Changing threshold for what is ‘Healthy’

• Introduced extra levels of granularity (Lime & Orange)

• Accounting for Segmentation

• Tracking Habits exposed a gap relating to customer license deployment introduced New Metric to track this

• Setting priorities for CSM, in order to drive maximum impact

• Example: Is it more important to move a customer from Yellow to Lime/Green, or from Red/Orange to Yellow

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Recommendations• Minimum Viable Product (MVP): It’s important to draw a line in the sand and

get the team starting to think in this new framework

• Iterate: Create a forum for gathering feedback from CSMs on what’s working well, and what can be improved

• Creativity in solutions: Ask CSMs to identify & share key plays they’ve identified, to help impact key metrics (ex: Tactics employed which moved a customer to Green)

• Trial Different Approaches:

• CSM Targets: Include baseline metrics each quarter, but introduce 1 or 2 new metrics to see what helps move the needle

• Strategies: Try different plays to assess which have the biggest impact on key metrics

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Impact and Benefits

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Impact & Benefits

Benefits:

• Accountability: CSMs are accountable to Leadership & the Board for key metrics, including boosting Habits

• Insight: Leading Indicators allow us to see if we’re improving on important dimensions, and to course correct if we identify issues

• Ownership: CS designated Metrics give CSMs a sense of ownership & impact

• Prioritization: Gives CSMs and Team Leaders an ability to prioritize work based on attainment of targets

• Significance: Having & achieving targets makes our Execs & Investors recognize Customer Success as a function that is adding a ton of value

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Questions?

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THANK YOU

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