Gainsight: Customer Success Management for a Post-Sale, On-Demand, Attention Economy

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

This post is about Gainsight. If you’d like a peek at the table of contents for this report and an excerpt, along with the full report, you can find it here.

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:

5 Areas for 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

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Totango: Customer Success Management for a Post-Sale, On-Demand, Attention Economy (Part 1)

Buyer’s Guide for Customer Success Management: Totango 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.  The first vendor I profiled is ServiceSource®.

totango logoThis post is about Totango. If you’d like a peek at the table of contents for this report and an excerpt, along with the full report, you can find it here.

Executive Overview: Totango Customer Success Management
Totango, a vendor of cloud software for Customer Success Management (CSM), was founded in Israel and later moved its headquarters to Silicon Valley. Today, it maintains two offices, one in San Mateo, California and one in Tel Aviv, Israel. Guy Nirpaz leads the company as CEO and co-founder. Prior to starting Totango, he worked in the area of real-time Big Data as executive vice president of engineering at GigaSpaces Technologies, a middleware provider. He also worked as chief architect at Mercury Interactive, part of the Hewlett Packard software division.

What Does Totango Do? With subscription and recurring revenue models on the rise in software, Totango helps clients improve product adoption and advocacy, reduce customer churn, and maximize customer lifetime revenue. Today’s cloud businesses have unprecedented data and visibility into user behavior and the business results achieved by their customers. Totango monitors this data to eliminate the guesswork when it comes to understanding customer health and engagement.

What Are the Benefits of Using Totango? Using Totango, companies can pinpoint at-risk accounts that need attention; spot opportunities to increase user engagement and boost revenue; and then formalize and implement customer success best practices to scale up customer success operations across a growing customer base.

What Companies Currently Use Totango? Totango is used by some of the fastest-growing technology companies, including public companies like Zendesk and Autodesk; mid-stage companies like BigCommerce and Jobvite; and innovative startups like Optimizely and Mixpanel.

Category Overview of Customer Success Management

Before the opt-in economy, many businesses focused on the initial sale. Organizations spent a significant amount of money on advertising and marketing to potential prospects. The goal – enticing them to convert from a lead to a sale. Despite decades of research showing that after-sales service directly affects the financial stability of a company, organizations paid little attention to the after-sale experience and financial longevity of the client. Consequently, organizations never should have spent 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 was horrible. Yet, poor after-sales service occurs every single day in many, many companies.

What is Customer Success Management? 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.

Why Has Customer Success Management Become Such a Big Deal? 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 Choose a Customer Success Management Vendor: 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. It’s never been more important make sure that customers are happy not only when they buy the software, but also after they have bought it. Otherwise, in this opt-in economy, clients may opt out of using a vendor, to look for a vendor that can deliver on their promise of great customer experience, increased revenue and decreased costs.

@DrNatalie, VP and Analyst Principal Analyst

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ServiceSource®: Customer Success Management for a Post-Sale, On-Demand, Attention Economy (Part 1)

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 short list guide for buyers.  The first vendor I profiled is ServiceSource®. Stay tuned, as more profiles will be published in the weeks to come.

Customer Success Management: ServiceSource® provides B2B companies with technology-enabled services, cloud software and best-practice processes to improve customer success, drive revenue growth and decrease churn from existing customers. It began as a managed services firm and evolved by adding a software platform. ServiceSource had $272.2 million in revenue in 2014.

salessourceWhat Does ServiceSource Do? ServiceSource’s solutions help companies manage the end-to-end customer revenue lifecycle, including onboarding and adoption, upsell and cross-sell, retention and renewals. With more than 15 years of experience focusing on customer success and revenue growth, ServiceSource has the depth of expertise companies need to manage their revenue lifecycle. With deployments across 40 languages and 150 countries and a recurring revenue technology platform, ServiceSource manages billions of dollars of recurring revenue for clients annually.

Why Customer Success Management Important Today: Today’s 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.

An Overview of Customer Success Management: 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.

Before, During and After the Sale: 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.

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.

What’s the Best Option for Your Company? 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.

Data to Decisions Drives the Democratization of Insight: The CSM field has been spurred on by the need to provide after-sales service intelligence that can be turned into actionable insights and decisions. Holistic, data-driven decisions require a multi-disciplinary approach that incorporates performance monitoring with traditional business intelligence technologies.

A multitude of data sources can be transformed into information streams guided by business process. As context is applied to information streams, patterns emerge that provide nuggets of insight. That insight then drives the ability to take action and make better decisions. This shift to using insight not only can serve high-margin, “luxury” brands, but also should be considered for all businesses through an investment in CSM. By transforming business models to include processes that immediately turn data into decisions, brands and organizations gain the ability to provide great, loyalty inspiring experiences that reduce churn and increase revenue.

Make sure to stay tuned for the next part of the mutli-part study!

Check out my vendor profile of ServiceSource®. An excerpt of the profile including the table of contents is available to download.

DOWNLOAD EXCERPT 

@drnatalie

VP and Principal Analyst, Constellation Research, Covering Customer Success Management, IOT, Analytics and Customer-facing Applications that Deliver Enhanced, Trust-building Customer Experiences via Customer Service, Sales and Marketing

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The State of Customer Success Management in 2015

This report is about the The State of Customer Success Management in 2015. Constellation’s research team delivers its inaugural series on the state of the state. The state of the state research explores the impact of digital transformation, next generation customer experience and matrix commerce from a systems perspective considering the political, economical, societal, technological, environmental, and legislative point of view. This research report explores a key area – Customer Success Management (CSM).

It goes into detail about how next generation customer experience is guiding the success of Customer Success Management.  A shift to Customer Success Management is emanate because we live in the world of a continuous, opt-in economy, where the value of a customer is determined by how long they stay a customer and if they continue to increase their purchase amounts over time. As a result, companies must prepare themselves to deliver great, continuous and consistent customer experiences. Before the opt-in economy, 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, even though the ubiquitous poor customer experiences still exist today after decades of research showing that after sales service directly affects the financial stability of a company. It makes absolutely no sense to spend millions or in some cases billions of dollars in advertising, marketing and sales to then drive the customer to the competitor because the after sales service experience is horrible. Yet this occurs every single day in many, many companies. Customer Success Management is based on the ability to deliver consistent customer experience process, before, during and— in particular, after the sale which continuous loops into increase customer lifetime value, enhanced revenue, increased margins and profits.

The main themes in the paper are:

  • Delivering a brand promise instead of a product or service requires new approaches.
  • Clients who believe in customer experience build CSM organizations.
  • CSM delivers more customers, less churn, and higher margins, really!
  • Predictive analytics identify known and reveal unknown attributes that drive customer success and
  • Expect larger customer experience vendors to incorporate these principles or acquire in this space.
 The reason some companies like Zappos, Nordstorm, Lexus, which are all considered “luxury” brands can offer excellent service is that their business model is built with enough margin to provide the people, process and technology that can deliver great experiences. Businesses must move away from the thinking that this type of service is limited to only luxury brands and they themselves must stop cutting corners on CSM. All businesses that expect to make it through the next several years must begin to change their business models immediately so that they have the margin to provide great, loyalty creating experiences.

Is your company ready to transform how it treats its customers? For information on this report you can find a snapshot here.

@drnatalie

VP and Principal Analyst, Covering Customer Success Management and Customer Service

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