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Turning Your
Revenue
Funnel into an
Hourglass
January

2014

Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Why?
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Rethinking the B2B Funnel
MARKETING

SALES

RETENTION

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

SALES

SUCCESS

Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
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.
Get Valued Higher
Increase

Drive

2% Retention

20% Multiple

2% Up-sell

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

People
Objectives
Strategy
Technology
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
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
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
People: Resource

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

Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
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
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.
Strategy: Manage Lifecycle
Customer Health

Maximize Up-Sell
Measure Health

Purchase

Flag Early Warnings

Renewal
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
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.
Strategy: Show ROI
Capture
Customer Goals

Profit

Track Customer
Goals

Show Progress
Against Goals
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Strategy: Track Your Sponsors

Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Strategy: Predict the Future

Adoption

Healthy
Customer
Cohort

Unhealthy
Customer
Cohort

Up-Sell / Renewal
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.
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
Gainsight Confidential. 2014 Gainsight, Inc. All rights reserved.

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Turning Your Revenue Funnel into an Hourglass