Introduction
Accurate risk management requires a detailed understanding of the different types of risks your customers face. By implementing a granular risk categorization system, you can ensure that each risk receives the appropriate response based on its specific characteristics. This article will guide you through building a more precise risk categorization framework using Gainsight’s tools, allowing your team to focus on the most critical and actionable risks.
Step 1: Define Detailed Risk Categories
Create a detailed risk categorization framework that includes multiple types of risks to ensure that each customer challenge is addressed with precision:
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Adoption Depth: Track how deeply customers are using core features using Adoption Explorer. Flag customers with low feature adoption as high-risk for churn.
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Stakeholder Loss: Use Sponsor Tracking to monitor changes in key decision-makers. A loss of a stakeholder can lead to disengagement or a drop in product adoption, and should be categorized as a critical risk.
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Product Risk: Create custom reports using Dashboards to track recurring product issues or support escalations. Product dissatisfaction can quickly lead to churn if left unaddressed.
By using granular categories, you can better identify and respond to specific risks, improving the overall customer experience.
Step 2: Tailor Playbooks to Risk Categories
Once risks are categorized, ensure that your Playbooks are customized for each category to provide a precise and effective response:
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Adoption Playbook: For customers flagged as high-risk due to low adoption, use Gainsight Playbooks to guide CSMs through steps such as scheduling a feature adoption session or providing additional training.
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Stakeholder Loss Playbook: Create a playbook specifically for stakeholder changes, prompting CSMs to engage with the new decision-maker and reiterate the value of your product.
Tailoring your playbooks based on risk categories ensures that your team can respond effectively to each customer’s specific challenges.
Step 3: Prioritize Risks Using Severity Scores
Assign severity scores to each risk category to ensure that the most critical risks are addressed first:
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Severity Calculators: Use Scorecards to assign severity scores to each risk based on ARR, contract timeline, or renewal stage. For example, a low adoption score for a high-value customer should be prioritized over minor product issues for a smaller account.
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Automate Priority Alerts: Use Rules Engine to automate CTAs for high-severity risks, ensuring your team addresses the most pressing issues first.
Prioritizing risks using severity scores helps your team focus on accounts with the greatest potential impact on revenue and retention.
Step 4: Continuously Refine Risk Categories Based on Feedback
As you monitor and address risks, continuously refine your categorization system to ensure it remains accurate and relevant:
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Refine Categories Based on Feedback: Collect feedback from CSMs on whether the current risk categories are capturing the most common customer challenges. Adjust your categories and playbooks based on their feedback.
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Track Outcomes via Dashboards: Use Dashboards to track outcomes and refine your risk categories. For instance, if certain categories consistently lead to successful churn prevention, you may want to prioritize those risks higher.
By refining risk categories based on real-world outcomes and team feedback, you can ensure that your team remains focused on the most impactful risks.
Next Steps for Success
With a granular risk categorization system in place:
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Monitor and refine risk categories: Use dashboards and feedback from your team to ensure your categories remain accurate and actionable.
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Automate priority responses: Use Playbooks and Rules Engine to automate responses to high-severity risks, ensuring timely intervention.
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