How do you measure ROI in your customer scorecard?

Hi @sarahmiracle , This is an excellent question. I will give you a quick summary here, you can deep dive on any of the following points using the articles mentioned.

1. Gainsight uses the O2 framework , our value realization framework, which helps us define what needs to be done for the customer or what are those next steps that could provide them value. Gainsight O2 framework: https://www.gainsight.com/pulse-everywhere-2021/building-o2-lessons-learned-creating-gainsights-value-realization-program-gainsight-on-gainsight/
2. Once we have defined what are our goals we go ahead and create success plans and define objectives that we need to track. We create an ROI success plan and work closely with the end customer to track completed objectives. Success plan: https://support.gainsight.com/SFDC_Edition/Success_Plans/About/Success_Plans_Overview
3. Once an objective is complete, we check with the customer on the value provided by that particular objective. It can be quantitative or qualitative. We call it verified outcome.
4.  We close those objectives on a success plan after getting a verified outcome. This goes into our ROI measure scores. If there was a verified outcome taken within X number days it is green yellow or Red accordingly. 

This is a very high level summary of how we do ROI calculation. You can get it touch with your CSM or COM for more details.

Hi Sarah,

D.E.A.R framework is one of Gainsight’s best practices in understanding and measuring Outcomes/Health. ROI - focuses on “customer value proposition” and can be Quantitative and/or Qualitative indicators. 

This is seamlessly done with our “Success Plans” feature, by making use of Verified Outcomes process within our DEAR framework. That should help you and the team to automate the processes and have the score populate with the help of rule.

The suggested criteria for ROI scorecard measure with the help of Success Plan ( verified outcome approach ) is below: 

a) Green ( 100 ) - atleast one (1) success ROI SP Objective and Verified Outcome for the set term ( eg: FY ). 

b) Yellow ( 60 ) - Objective a SP ROI is tracked but no Verified Outcomes and is not closed. 

c) Red ( 20 ) - No Objective tracker and No verified outcome is obtained.

** One can push the verified Outcome update to the timeline for greater visibility and also automate the processes in place with the help of CTAs for any notification to the CSMs. 

** when we have the proper weightage in place for the ROI measure, the overall score will be based on the individual scores in the group.

Once we have the above in place, one can pull up the report as needed and also embed in a dashboard for enhanced visibility.

You can get in touch with your COM/CSM for further details.

Thanks for raising this interesting question, @sarahmiracle . The answers above are very valuable already, so I'm definitely following this thread.

We have opted for the simplest approach towards ROI in our scorecard: a manual measure to be set by the CSM (based on their discussions with customer and estimation):

• Green: ROI > 3 times investment
• Yellow: ROI > investment
• Red: ROI < investment

The approach has some clear disadvantages though: it's hard for CSMs to get a good estimate of ROI and not everybody keeps these manual metrics up to date, so I'd think a survey approach or automation via Success Plans (if you have a good Success Plan practice) are definitely to be preferred on the long run.