Summit Partners Joins Investors to Help Gainsight Eradicate Churn in the Subscription Economy
MOUNTAIN VIEW, CA–Gainsight, the leading Customer Success Management solution, today announced a $20 million Series B funding round led by Bain Capital Ventures with participation from existing investor Battery Ventures and new investor Summit Partners, bringing the company’s total financing to $30 million. Gainsight will use the funds to aggressively grow its engineering, sales, marketing and customer success efforts to increase customer lifetime value in the $500 billion Subscription Economy. The subject of a separate announcement today, Gainsight unveiled its new big data platform for connecting frontline employees using CRM systems to the vast troves of data companies have about their customers, allowing them to identify ways to drive increased spend from existing customers. With Gainsight, customer success becomes a CEO directive—companies can now derive actionable value from their data to build better relationships with customers and grow revenue. At the forefront of a dramatic shift in the way organizations harness data to manage customer success, Gainsight has experienced a surge in companies – including Angie’s List, Castlight Health, Informatica and Marketo – turning to Customer Success Management (CSM) and Gainsight as the foundation for building a customer-centric culture across their entire organizations.
“A recent research study of public subscription businesses revealed that a 2 point improvement in retention rate can lead to a 20% or greater improvement in company valuation,” said Nick Mehta, CEO at Gainsight. “Echoing these findings, a recent Gainsight survey of more than 100 leading subscription businesses showed that companies with a Customer Success team report a 24% lower churn rate than companies without one. From Sand Hill to Wall Street, Customer Success Management has become a must-have to ensure the long term viability of any recurring revenue company.”
Organizations that depend on customer retention must accurately understand their users’ habits to achieve customer success. The challenge is that although today’s organizations are collecting more data about their customers than ever before, the information remains distributed across multiple systems and formats, making it difficult to stitch together the information into a picture of customer health. Gainsight’s revolutionary Customer Success Management platform integrates these siloed data sources, predictively identifies risk indicators of customer churn, presents a holistic assessment of each customer’s health in a familiar and easy-to-consume view, and suggests best practices for addressing at-risk customers and upsell opportunities. By leveraging big data analytics for customer intelligence across multiple data sources and making it easy to understand customer health at a glance, Gainsight arms team members across all levels in an organization to take action to retain and grow future revenue streams.
Quotes from Gainsight Investors
“Due to increasing competition, every business in the world has to rethink and prioritize their focus on customer success”, said Ajay Agarwal, managing director at Bain Capital Ventures. “Gainsight is the clear leader in providing a SaaS solution to manage this vital cross-functional initiative. While marketing automation helps nurture leads and sales, force automation streamlines the sales pipeline, Gainsight’s solution uniquely provides a 360-degree view of your customers. We fundamentally believe every business will require Gainsight’s Customer Success Management platform to reduce churn, increase cross-sells/up-sells, and improve customer satisfaction.”
“We were early believers in Gainsight’s team vision and mission, and continue to be impressed with the their innovation and determination to change the way all companies think about customer success and churn,” said Roger Lee, general partner at Battery Ventures. “It’s fantastic what Gainsight is accomplishing and the impact its technology has already made on recurring revenue companies of all sizes. The opportunities that lie ahead for Gainsight are massive and we look forward to supporting the company along its journey to becoming a driving force for the Subscription Economy.”
“As the market-leading Customer Success Management company, Gainsight is truly changing the game for recurring revenue companies that depend on customer retention to meet their business growth goals,” said Harrison Miller, managing director at Summit Partners. “We are thrilled to be supporting Nick and the very talented Gainsight team. As Gainsight scales, we look forward to helping the company impact the Subscription Economy through its groundbreaking technology and die-hard commitment to solving hard problems.”
Gainsight, the first and only complete Customer Success Management solution, helps businesses reduce churn, increase up-sell and drive customer success. The company’s SaaS suite integrates with Salesforce and uses Big Data analytics to evaluate sales data, usage logs, support tickets, surveys and other sources of customer intelligence. In this way, Gainsight provides a 360° view of customers and drives retention across Customer Success, sales, marketing, executive and product management. Learn how leading companies like Angie’s List, Castlight Health, Marketo and Informatica are using Gainsight to help their customers succeed at www.gainsight.com.
For more information:
* Learn more about the new Gainsight platform: http://www.gainsight.com/customer-success-products
* Join Gainsight's growing team: http://www.gainsight.com/careers