What is a value realization program?

• Value Driver → Outcome → Metric → Workflow → Verified Outcome 
• Our value realization program, commonly known as Operationalizing Outcomes or O2, enables our customers with the building blocks to quickly define and achieve value with Gainsight. 
• This is the framework for how we talk about Gainsight’s value proposition and ideally this begins in the sales cycle to understand the business challenge that brings a prospect to us in the first place
• Depending on the outcome they’d like to achieve, we have a set of metrics that will be how we measure their return on investment. And a set of workflows that we’ll put in place to help make progress on those metrics. 
• And then finally once we’ve shown progress on those metrics and achieved that outcome, we have what is called a “verified outcome” which should showcase quantitative improvement

Why is a value realization program important?

• In a 2022 Analysis of Gainsight Customer Data with renewals in FY 2021, GRR % (Gross Revenue Retention) was calculated based on cohorts of approximately 190 accounts with similar total ARR. Our teams found that when GS CSMs get a “Verified Outcome” 3-months prior to the renewal, we renew at a 30% higher gross retention rate. The cohort of customers that had no verified outcomes churned 30% more than the ones with verified outcomes. It is a huge impact for us.
• In addition to an increase in gross retention, when we look at value realization programs in general, we typically see impact like 50% faster time to value, 25% faster time to next expansion along with a 70% increase in expansion.

How Does Gainsight Guide Customers to a Verified Outcome?

• At Gainsight, we focus on the “big” problems our customer face to achieve world-class NRR. We’ve identified the four value drivers that come up the most across our customer base; Increase expansion, increase scale & efficiency, improve user experience & product adoption, and improve retention. 
• We then align our determined outcomes to these value drivers. Outcomes are tactical objectives that we can operationalize 
  • Path of Maturity: your customers should be able to know where to start, where they can expect quick wins
  • They should also know where the stand on your customer journey, where are we at in terms of maturity?
  • Lastly & most importantly on outcomes, they need to know how they’re going to MEASURE PROGRESS.
• Once we’ve identified outcomes the customer is looking to achieve we then align to a specific metric. 
  • Lagging = business metrics that you’re looking to improve with enhanced workflows
  • Leading = the metrics Gainsight influences, show progress toward business metrics, what we focus on moving forward
  • Example: Improve Retention (value driver) → Reduce Risk & Churn (Objective) → GRR (Lagging metric) → At Risk Revenue (Leading Metric) 

Success Planning in Gainsight

• Lastly, we prescribe workflows specific to customer maturity and desired outcomes in a crawl, walk, run approach. 
• Example Crawl Workflow: Reduce Risk & churn (Objective) → “Playbooks for common risks” & “Red accounts process for top accounts”. 
• We then track the objectives and workflows within Success Plans. Once we have helped a customer achieve the outcome, we close the objective as an activity type “Verified Outcome” 
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Key Takeaways 

• Zoom out! Start with understanding your customer’s key business challenges (value drivers) to work your way through the building blocks of a value realization program.
• Make sure that to specifically define and align on baseline AND targeted metrics with your stakeholders.
• Ensure that you have the “Buyer”/”Executive” stakeholder sign off when it comes to validating the key components of the Outcomes Hypothesis (invite to meeting walking through your value realization program, send copy of success plan post call, EBR)
• Value Realization programs are designed to help you define how you are going to provide value to your customer and how we measure ROI to ensure continuous renewals.
• Even if a formal program doesn’t exist at your company, you can still apply this with your customers!