Buyer’s Guide for Customer Success Management: Gainsight I’m in the process of writing profiles of vendors in the customer success management industry. These vendor profiles are a tool for buyers to evaluate their customer success management options before selecting a vendor. In addition to an overview of the vendor, these documents identify key differentiators, product offerings, and provide a number of features that should help a client create short list when determining which vendor to put on out an RFI or RFP. So far, I have also covered ServiceSource® and Totango
What Does Gainsight Do? Gainsight is one of the leading vendors of Customer Success Management (CSM) software. Founded in St. Louis, Missouri in 2009, Gainsight’s headquarters are now in Redwood City, California. Nick Mehta is the chief executive officer (CEO). As a customer success technology company, Gainsight helps companies manage their customer relationships while driving retention, upsell opportunities and organizational efficiency. The company has nearly $6 million in annual revenue and has raised $54 million in venture funding.
How Does Gainsight Help Companies? Gainsight helps businesses grow faster by reducing customer churn, increasing upsell opportunities, and driving customer advocacy. Gainsight’s cloud-based product helps its clients track customers effectively throughout the customer lifecycle, monitors customer health consistently and makes companies truly customer-centric. Gainsight does this by providing a 360-degree view of customers to people in customer success, sales, marketing, product management and executive offices.
Today, cloud businesses have unprecedented visibility and data on customers that can be harnessed with a customer success management platform. This opens up new opportunities and smarter ways to connect and engage with customers to maximize revenue and to determine what customers need and want so they remain loyal and provide high customer lifetime values.
Why has Customer Success Management Become So Important?
Before the opt-in economy, many businesses were focused on the initial sale. A great deal of money was spent advertising and marketing to potential prospects, enticing them to convert from a lead to a sale. However, little attention was paid to the after-sale experience and financial longevity of the client, even though poor customer experiences and churn still exist today after decades of research showing that after-sales service directly affects the financial stability of a company. In fact, it never made sense for companies to spend millions, or in some cases, billions of dollars in advertising, marketing and sales to then drive the customer to a competitor when the after-sales service experience is horrible. Yet poor after-sales service occurs every single day in many, many companies.
How Does Customer Success Management Affect the Customer Experience? Customer Success Management (CSM) is based on the ability to deliver a consistent customer experience process – before, during, and in particular, after the sale – which results in maximized customer lifetime value and enhanced revenue that leads to increased margins and profits.
A shift to CSM happened because we live in a continuous, opt-in economy, where the value of customers is determined by how long they stay customers and if they continue to increase their purchase amounts over time. Because of our opt-in economy, companies must prepare themselves to deliver great, continuous and consistent customer experiences. Here’s five things to consider when looking at master Customer Success Management:
This seismic shift to a post-sale, on demand, attention economy transforms the value exchange among customers, partners, suppliers, and brands. And as organizations move to digital business models, CSM plays a critical role in enabling brands and organizations to keep and deliver their brand promise as well as enhance their bottom line.
My POV: How To Know When Vendor To Choose for Customer Success Management? When choosing the best option for CSM software for your organization, the choice will depend on the business goals of CSM initiatives, the degree to which CSM has been integrated into your culture and how well employees have adopted this mindset. It may be that some organizations will be further along the adoption cycle, while others will need internal champions to encourage and enforce the use of customer success software, processes and best practices.
Are you considering customer success management? It’s time to make sure the customer is happy with the product they buy, after the sales process.
@DrNatalie, VP and Principal Analyst, Constellation Research