Embedded Analytics Webinar

Pentaho Webinar Series:

Changing the Game for ISVs
October 22, 2013

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© 2013, Pentaho. All Rights Reserved. pentaho.com. Worldwide +1 (866) 660-7555

Advantages of Embedded Business Analytics
for Customer Success Users
The Impact Embedded Analytics Can Make on Your Bottom-Line

Presenters:
Kevin Dobbs CEO, Montclare
Nick Mehta CEO, Gainsight

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About Pentaho
• Recognized leader in business analytics & data integration
• Subscription-based business model
• Achieved critical mass:
• Over 1,200 commercial customers
• Over 10,000 production deployments
• Over 185 countries
• Stewardship of most important open source analytics projects
INDUSTRY RECOGNITION

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OVER 160 PARTNERS GLOBALLY

Speakers

Kevin Dobbs, CEO, Montclare

Nick Mehta, CEO, Gainsight

Kevin is the founder and CEO of Montclare, a
leading advisory firm exclusively focused on
building profitable SaaS businesses.

Nick is the CEO of Gainsight, the leading
Customer Success Management company
helping businesses reduce churn and increase
upsells with a complete, data-driven view of
customer health.

Kevin is an Oracle alumni who started his
career working with industry icons Marc
Benioff, Craig Conway and Tom Siebel. He
also held executive management positions
with Edify, Workscape, Kadiri and
Workstream where he was responsible for
developing each company's new SaaS
products and businesses.
Active in the SaaS community, Kevin is
frequently a speaker at SaaS and Cloud
Computing industry events. He has published
many popular papers on building high value
SaaS businesses and is the author of the
Smart SaaS blog.

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Before joining Gainsight, Nick was an
Entrepreneur-in-Residence at Accel Partners
where he focused on developing opportunities
in the enterprise applications and infrastructure
markets.
Prior to Accel Partners, Nick served as CEO of
LiveOffice, leading the company’s profitable
growth in revenue and successful sale to
Symantec. Prior to LiveOffice, Nick was a Vice
President at VERITAS Software. Nick holds a
master’s degree in computer science from
Harvard University.

Leveraging Embedded Analytics
To Gain Advantage In Customer Success
Kevin Dobbs, CEO

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Customer Success Market is New
“It’s the next big category” – Geoffrey Moore, Chasm Group

‘Analysis shows that an incremental 2%
increase in retention leads to a 20% higher
multiple, and an incremental 2% increase in
up-sell leads to 28% higher multiple’

It is more difficult and costs 6 to 7 more
times to acquire a new customer than it
does to keep an existing one.

For private SaaS companies in 2011, we
found an average renewal rate of 78
percent by total customer renewals and
87 percent by total dollar value

Sources:
SaaS CEOs: Measure Customer Engagement – Increase Conversions & Lower Churn, David Skok, 2011
The SaaS churn challenge: How to hold onto your customers, Viralheat CTO Vishal Sankhla, 2013
SaaS Benchmark Report, OPEXEngine, 2013
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Market is Evolving Quickly
Customer Success Management
Customer Lifecycle Management
Customer Engagement

Gainsight Raises
$9M Series A

Customer Success Analytics

April 2013

Customer
Engagement
Customer
Lifecycle
Management
Customer Success
Analytics

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Customer Success Tips & Tricks
Reducing churn and increasing customer satisfaction
1. Automate Onboarding

4. Health Checks



Easy to use forms



Monthly activity



Pre-configured workflows



Key features used



Checklists



New features

2. Track Activity

5. Engagement



Monitor logon’s

 Communities



Transaction volumes

 User meetings



New users

 Interest groups

3. Self-Service Training



Wiki’s



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Videos
Recorded webinars


Customer Success Tips & Tricks
Reducing churn and increasing customer satisfaction
1. Automate Onboarding

4. Health Checks



Easy to use forms



Monthly activity



Pre-configured workflows



Key features used



Checklists



New features

2. Track Activity

5. Engagement



Monitor logon’s

 Communities



Transaction volumes

 User meetings



New users

 Interest groups

3. Self-Service Training



Wiki’s



10

Videos
Recorded webinars


Challenges to SaaS Customer Success
Common customer issues with all types of Customer Success and
Service products:
•
•

Hard to gain visibility across large amounts of data

•

Tools can be complex and hard to use

•

Information resides in many, disconnected systems

•

Can't easily implement newest capabilities

•

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Data overload

Slow time to value


Challenges Facing SaaS Companies
Leveraging external R&D team for non-core technology
•
•

Commercialized open source products, large developer community
supporting the products and increasing innovation

•

Keep ISVs development team and investments smaller

•

Embedded or OEM model

•

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Deliver quickly; dramatically improved time to market

Tap into needed domain expertise


Delivering a Superior Customer Experience
Understanding the importance of adoption and consumption
Commitment
Internalization

Institutionalization

Acceptance
Change Management

Adoption

Initial Use

Perception

Positive Perception
Communication

Understand

Preparation
Aware
Unaware
Time
Source: Product Adoption and Consumption Curve. Glenn Oclassen, 2012
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Go Live

Commitment
Internalization


Acceptance
Change Management

Adoption
Training

Initial Use

Perception

Positive Perception
Communication

Understand

Preparation
Aware
Unaware
Time
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Go Live

Commitment
Internalization

Support


Acceptance
Change Management

Adoption
Training

Initial Use

Perception

Positive Perception
Communication

Understand

Preparation
Aware
Unaware
Time
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Go Live

Flexible Analytics Propel SaaS Products
Increase Customer Adoption and Consumption

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Addressing Customer Adoption Challenges
Adding New Customer Success Capabilities Quickly
• Rate of change has increased and customers expect rapid innovation
• Competitive advantages are hard to maintain
• Adding complimentary capabilities; no internal expertise in areas like Analytics,
BI or Big Data
• Looking for new features that engage users

ISV SaaS Platform

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Social

Mobile

Analytics

Integration

Single Sign-On

• Support for mobile

New Features
“Plug & Play”

Poll
What types of Customer Success products does your
company use?
☐ Call Center
☐ Customer Lifecycle

☐ Communities

☐ CRM

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 Customer Analytics

☐ PSA


Examples of OEM Products
SaaS Add-On market is growing

Security / SSO

Integration

Big Data

Social

Mobile

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Communities Use Case
Connecting with customers
Customer Communities
•
•

View user activity

•

Spot trends

•

Build automated reports with charts

•

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In-line reporting

'What if' analysis


Customer Service
Proactively engaging customer service issues
Customer Support
•
•

Identify problem trends

•

Understand quality of resolution

•

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Review issues quickly

Quickly determine cost per interaction


Professional Services Automation
How Embedded Analytics Can Help
Installation and Onboarding
•
•

Scheduling

•

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Resourcing

Project Management


Learn More About the SaaS Model and Market

Montclare is a leading provider of SaaS resources including research,
services and a SaaS-focused online community. The Montclare team
has been actively involved in the SaaS industry since it's inception,
profiling leading firms, speaking at industry events and providing
business guidance to a full spectrum of software companies.
The Montclare Community has been design to help software
professionals gather more information about SaaS. This new beta
community allows members to them watch current SaaS video content,
learn what's happening in SaaS through news feeds and information
shared by industry thought leaders, they can also connect with their
peers and share industry best practice ideas and information. Visit
Montclare.com for more information.

Become a member for free today at montclare.com

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The Montclare SaaS 250 is a report identifying the 250
most influential SaaS companies in the world. The
document provides analysis of the industry as well as
individual companies. These companies are categorized by
revenue size, solution type and geographic location. The
report is a critical tool for competitive analysis, go-to-market
programs and market segmentation.
Montclare's SaaS 250 is a valuable tool for software
executives, investors and analysts due to it's insight within
this fast-paced market. The Report is available exclusively
through the Montclare site at: montclare.com/saas250.

Customer Success Experiences
Nick Mehta, CEO

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success noun sek-’ses

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How?
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Starts With Culture

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6 Steps to Success

1.
2.
3.
4.
5.
6.

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Create org
Define customer health
Tier customers
Manage customer data
Define interventions
Get predictive


1. Org – Assign an Owner

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1. Org – Where Do You Fit?
Partnership
Model

Product Complexity

ServiceOriented

Integrated
Model
SalesOriented
Firefighter

Business Maturity

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2. Measure Customer Health

Financial Health: Payment history, credit score

Contract: Term, spend

Relationship: Surveys, key sponsors

Adoption: Usage, features

Interaction: Support, other contacts, social

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Poll #2
Which one of the following business problems resonates
best with you?
☐ Identifying at-risk customers early
☐ Scaling Customer Success / Account Management teams efficiently
☐ Finding up-sells and advocates

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3. Tier Customers
STRATEGY
PROACTIVE

JUST-IN-TIME

High
Touch

High
Touch

Key Issues
Just revenue?
Reference-ability?

Low Touch

White space?
Low Touch
AUTOMATION

No Touch

No Touch

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Network effect?

4. Manage Customer Data
CRM System

Products, renewal date, pricing, …

PSA System

Late go-live, go-live and no usage, …

Support System

Lots of P1s, long TTR, no cases, …

Product

No usage, decline, key feature, …

Survey System

NPS, post-case, post-onboarding, …

Billing

Invoices past due, credit card declines, …

???

QBRs, reference, conference, …

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Key Issues
Common customer ID
Sync frequency
Aggregation level

4. Manage Customer Data
Raw data aggregation

Operational store

Reporting

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5. Define Interventions

STRATEGY
PROACTIVE

JUST-IN-TIME

AUTOMATION

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INTERVENTION
High
Touch

Customer Prep

Low Touch

Early Warning

No Touch

Nurture


6. Get Predictive

Data
Science

Counter
Intuition

Confirm
Intuition

New
Insights

Best
Practices

Intuition

Alert Rules and Playbooks

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6. Get Predictive
Phase

Hard Problems

Data science strategy
Feature extraction

How do group / aggregate data?

Feature selection

Which data matters?

Machine learning

Which algorithms to use?

Iteration

Where do we go next?

Alert configuration

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What data to start with?

How do we operationalize this?


Case Study: Methodology
Data Set Selection
•Isolated data to customers with at least 9 months of history
•Split customers into two – “Test” and “Control” groups
•The “Control” group compared Churn vs Active
•We back-test the prediction model against the “Test”
•> 40 usage features, NPS, support, account data

Time Selection
•Narrowed focus to “normal” active periods
•Compared 3-month time frames to find secular trends
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Case Study: Findings

53% decline in
number of
sessions in
middle of
subscription

15% decline in
key usage
metric

No proactive
outreach
within 6
months of
renewal

Alert Rules and Playbooks

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Average NPS score
of churned
customers = 7.2
(scale is 1 to 10)
Only a small number
of churned
customers had
highest level Support
tickets

We Drive Customer Success for
the Subscription Economy

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Q&A

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Ben Hopkins, Product Marketing Mgr
bhopkins@pentaho.com

Nick Mehta, CEO
nmehta@gainsight.com

Tel. +1 415-525-5540

Tel. +1 510-336-0019

Tel. +1 408-623-2645

pentaho.com

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Kevin Dobbs, CEO
kevin.dobbs@montclare.com

montclare.com

gainsight.com


Thank You
JOIN THE CONVERSATION. YOU CAN FIND US ON:

blog.pentaho.com
@Pentaho

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Facebook.com/Pentaho
Pentaho Business Analytics


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