The document discusses how Red Hat implements customer success. It begins with background on Red Hat as the leading open source software company, serving over 90% of Fortune 500 companies. It then outlines Red Hat's subscription model, which provides ongoing technical support, software updates and patches, and other benefits to customers for an annual subscription fee. The document notes it is a disciplined approach with the right customer engagement strategy and ease of acquisition and exit suited for the subscription economy.

1. Child-like Joy
©2015 Gainsight. All Rights Reserved.
How Customer Success is Revolutionizing Open Source Companies

2. Child-like Joy
©2015 Gainsight. All Rights Reserved.
How to Win in Open Source
with Customer Success Dhaval Moogimane
Partner, Waterstone
Management Group

3. Objectives
•Why Customer Success is important for open source software
companies
•How open source software companies can get started and
maximize the value of Customer Success

4. Challenges for open source companies
Competition with Free &
Proprietary
A.Convince “free” users to
convert to paid open source
support
B.Convert proprietary users to
premium open source
C.Justify pricing at each
renewal
1
Customer Value in Long Tail
A. Manage customers in the
long tail via existing
resources
B. Identify opportunities for
cross-sell and upsell within
existing base
3
Heavy Reliance on
Subscription
A. Deliver fast time to value
B. Focus on renewals
2
These 3 factors drive challenges in customer retention, conversion, and
upsell / cross-sell for open source companies

5. Why Customer Success is important for open source
1. Competition with free &
proprietary
2. Heavy reliance on
subscription
3. Customer value primarily in
long tail
Open Source Challenges Customer Success Outcomes
Relentless focus on Customer Success
and Experience to Drive ARR
Conversion to paid for premium offerings
Cross-sell
Upsell
Retention

6. • Improved retention rate
attributable to CSM
• Qualified leads passed
to sales (license,
education, success,
services, etc.)
• Direct signing on
success, services, or
education offerings
• Conversion to paid-for
premium offerings
• Increased sales
efficiency
• Improved sales retention
• Reduced support org
costs
• Reduced CAC
Economic impact of Customer Success for open source
Illustrative CSM org profitability
B C DA

7. How to get started
5 actions that open source companies should take when establishing
Customer Success capability
Make Customer Success
an organizational
priority
Align organization on CS and formalize review of customer health metrics
Charter a Customer
Success team
Establish team to monitor customer usage and health, and drive net
renewals
Find the right talent
Identify CSMs that can engage with users during key point in lifecycle to
gauge usage, assess risk, and prompt adoption
Understand your
customer
Gather product usage insight via available indicators
Exploit the long tail Invest in technology and design CS model with automation in mind
1
2
3
4
5
1
2
3
4
5

8. Child-like Joy
©2015 Gainsight. All Rights Reserved.
How to Implement
Customer Success at an
Open Source Organization
Andy Knosp
Vice President of Services
Gainsight

9. 5 Pillars of Customer Success

10. Demonstrate the value you deliver
to your customers to promote
adoption, advocacy, and growth
DEMONSTRATE
Value
5 Pillars of Customer Success
Build a consistent, effective customer
journey through one-to-many strategies
and high-impact, timely one-on-one
interactions
OPERATIONALIZE
Customer Lifecycle
Build a customer-focused organization
by improving cross-functional
coordination and measuring impact
ENABLE
Cross-functional Visibility
Make it easy to spot and act on
opportunities for growth and candidates
for advocacy
DRIVE
Expansion & Advocacy
Proactively identify signs of
customer risk and collaborate
cross-functionally to address
issues
MANAGE
Customer Risk

11. ©2015 Gainsight. All Rights Reserved.
Business Challenges
1. We have accounts we can’t touch with manual outreach
but need proactive attention
2. We are seeing customer satisfaction issues due to poor
hand-offs from sales to CSM
3. We spend too much time preparing for Executive
Business Reviews
4. CSMs have too many repetitive interactions with
customers
5. It takes customer-facing team members too long to
prepare for customer meetings
6. We need to increase the ratio of accounts a CSM can
handle to make CSM more cost effective
OPERATIONALIZE
Customer Lifecycle
MANAGE
Customer Risk
DEMONSTRATE
Value
DRIVE
Expansion & Advocacy
ENABLE
Cross-Functional Visibility
5 Pillars of Customer Success

12. ©2015 Gainsight. All Rights Reserved.
Business Challenges
1. We don’t know which accounts are at risk, and which we can
impact or de-prioritize
2. We are seeing churn due to low adoption
3. We are seeing churn due to low-value adoption (e.g. not using
new or advanced features)
4. We are seeing churn due to functionality gaps in the product
5. We are seeing churn due to product stability or quality issues
6. We are seeing churn due to poor customer satisfaction
7. We are seeing churn due to loss of our key customer champion
8. We are seeing churn due to customer service issues
5 Pillars of Customer Success
OPERATIONALIZE
Customer Lifecycle
MANAGE
Customer Risk
DEMONSTRATE
Value
DRIVE
Expansion & Advocacy
ENABLE
Cross-Functional Visibility

13. ©2015 Gainsight. All Rights Reserved.
Business Challenges
1. We don’t have a consistent way to track customers’ goals
throughout their lifecycle
2. We don’t have a scalable way to show customers how they
use our product/service
3. We are seeing churn due to customers not seeing ROI or
business value
4. We need to give management visibility into CSM efforts
and impact
5. We need a way to report on retention, upsell, and churn
6. We need a way to forecast retention, upsell, and churn
5 Pillars of Customer Success
OPERATIONALIZE
Customer Lifecycle
MANAGE
Customer Risk
DEMONSTRATE
Value
DRIVE
Expansion & Advocacy
ENABLE
Cross-Functional Visibility

14. ©2015 Gainsight. All Rights Reserved.
Business Challenges
1. We don’t know which customers to use as references and
in marketing activities
2. We have no way to track our sponsors as they go to new
companies in a scalable way
3. We don’t know which customers are trending toward
needing more capacity
4. It’s too manual for us to spot customer overages
5. We don’t know which customers are good candidates for
upsell
6. We don’t know how to turn happy customers into
advocates
5 Pillars of Customer Success
OPERATIONALIZE
Customer Lifecycle
MANAGE
Customer Risk
DEMONSTRATE
Value
DRIVE
Expansion & Advocacy
ENABLE
Cross-Functional Visibility

15. ©2015 Gainsight. All Rights Reserved.
1. Our field reps and execs are sometimes blindsided by
customer risks
2. Our sales reps and account managers are sometimes
blindsided by customer risks during a sales cycle
3. We don’t have a consistent view of customer health across
our company
4. We don’t know what’s driving risk and success in our
customer base
5. We need a way to track customer relationships across
complex customers, multiple products
Business Challenges
5 Pillars of Customer Success
OPERATIONALIZE
Customer Lifecycle
MANAGE
Customer Risk
DEMONSTRATE
Value
DRIVE
Expansion & Advocacy
ENABLE
Cross-Functional Visibility

16. ©2015 Gainsight. All Rights Reserved.
We don’t have a consistent way
to track customers’ goals
throughout their lifecycle
We don’t have a scalable way
to show customers how they
use our product/service
We are seeing churn due to
customers not seeing ROI or
business value
We need to give management
visibility into CSM efforts and
impact
We need a way to report on
retention, upsell, and churn
We need a way to forecast
retention, upsell, and churn
We don’t know which accounts
are at risk, and which we can
impact or de-prioritize`
We are seeing churn due to low
adoption
We are seeing churn due to
low-value adoption (e.g. not
using new or advanced
features)
We are seeing churn due to
functionality gaps in the product
We are seeing churn due to
product stability or quality
issues
We are seeing churn due to
poor customer satisfaction
We are seeing churn due to loss
of our key customer champion
We are seeing churn due to
customer service issues
Our field reps and execs are
sometimes blindsided by
customer risks
Our sales reps and account
managers are sometimes
blindsided by customer risks
during a sales cycle
We don’t have a consistent view
of customer health across our
company
We don’t know what’s driving
risk and success in our
customer base
We need a way to track
customer relationships across
complex customers, multiple
products
We have accounts we can’t
touch with manual outreach
that need proactive attention
We are seeing customer
satisfaction issues due to poor
hand-offs from sales to CSM
We spend too much time
preparing for Executive
Business Reviews
CSMs have too many repetitive
interactions with customers
It takes customer-facing team
members too long to prepare
for customer meetings
We need to increase the ratio
of accounts a CSM can handle
to make CSM more cost
effective
We don’t know which
customers to use as references
and in marketing activities
We have no way to track our
sponsors as they go to new
companies in a scalable way
We don’t know which
customers are trending toward
needing more capacity
It’s too manual for us to spot
customer overages
We don’t know which
customers are good candidates
for upsell
We don’t know how to turn
happy customers into
advocates
Identifying Key Business Challenges
OPERATIONALIZE
Customer Lifecycle
MANAGE
Customer Risk
DRIVE
Expansion & Advocacy
ENABLE
Cross-Functional
Visibility
DEMONSTRATE
Value
1
2
3
4
5
6
1
2
3
4
5
6
7
8
1
2
3
4
5
6
1
2
3
4
5
1
2
3
4
5
6

17. ©2015 Gainsight. All Rights Reserved.
We don’t have a consistent way
to track customers’ goals
throughout their lifecycle
We don’t have a scalable way
to show customers how they
use our product/service
We are seeing churn due to
customers not seeing ROI or
business value
We need to give management
visibility into CSM efforts and
impact
We need a way to report on
retention, upsell, and churn
We need a way to forecast
retention, upsell, and churn
We don’t know which accounts
are at risk, and which we can
impact or de-prioritize`
We are seeing churn due to low
adoption
We are seeing churn due to
low-value adoption (e.g. not
using new or advanced
features)
We are seeing churn due to
functionality gaps in the product
We are seeing churn due to
product stability or quality
issues
We are seeing churn due to
poor customer satisfaction
We are seeing churn due to loss
of our key customer champion
We are seeing churn due to
customer service issues
Our field reps and execs are
sometimes blindsided by
customer risks
Our sales reps and account
managers are sometimes
blindsided by customer risks
during a sales cycle
We don’t have a consistent view
of customer health across our
company
We don’t know what’s driving
risk and success in our
customer base
We need a way to track
customer relationships across
complex customers, multiple
products
We have accounts we can’t
touch with manual outreach but
need proactive attention
We are seeing customer
satisfaction issues due to poor
hand-offs from sales to CSM
We spend too much time
preparing for Executive
Business Reviews
CSMs have too many repetitive
interactions with customers
It takes customer-facing team
members too long to prepare
for customer meetings
We need to increase the ratio
of accounts a CSM can handle
to make CSM more cost
effective
We don’t know which
customers to use as references
and in marketing activities
We have no way to track our
sponsors as they go to new
companies in a scalable way
We don’t know which
customers are trending toward
needing more capacity
It’s too manual for us to spot
customer overages
We don’t know how to turn
happy customers into
advocates
Identifying Key Business Challenges
OPERATIONALIZE
Customer Lifecycle
MANAGE
Customer Risk
DRIVE
Expansion & Advocacy
ENABLE
Cross-functional
Visibility
DEMONSTRATE
Value
1
2
3
4
5
6
1
2
3
4
5
6
7
8
1
2
3
4
5
6
1
2
3
4
5
1
2
3
4
5
A B C D E

18. ©2015 Gainsight. All Rights Reserved.
GAINSIGHT APPROACH TO IMPLEMENTATION
High velocity onboarding focused on enabling your team
to take full ownership of Gainsight
Structured
& Prescriptive
Enabling your team Based on learning from
150+ implementations

19. ©2015 Gainsight. All Rights Reserved.
GAINSIGHT SUCCESS EXPRESS IMPLEMENTATION
Success Express Workshop
Steps 1-6 in 3.5 days
Customers & Sponsor
Tracking
1
Lifecycle Cockpit2
Configuration Only – Usage
and Scorecard
3
Start CoPilot
Lifecycle Reporting
4
5
NPS Surveys
Customer 360 +
Engagement Data
Health Scorecard
6
7
8
Engagement Analytics
Expand CoPilot
Triggered Engagement
Rules
9
10
11
5 weeks for steps after Workshop
PREWORK
Engagement Data
Integrate your other key data points, e.g. Product Usage
~ 14
days
Rollout1
Rollout2
Operationalize Customer Lifecycle Enable Cross-functional Visibility
Demonstrate Value
Drive Expansion and Advocacy
Manage Customer Risk

20. ©2015 Gainsight. All Rights Reserved.
GAINSIGHT COMMUNITY RESOURCES
Articles
Gainsight Go contains
numerous constantly-updated
articles that can help answer
any questions you have about
Gainsight’s features
Videos
You can also watch many step-
by-step videos that guide you
through complex Gainsight
features and can help you train
your team
Best Practices
Gainsight Go is filled with best
practices we’ve developed over
the years so you can make
sure you’re getting the most out
of Gainsight
Gainsight Go
Advice from the Group
Get advice and input from the
community on Gainsight as
well as customer success in
your org
Announcements
Stay up-to date with GS
announcements on products,
training webinars and more
Ideas
Contribute ideas to improve
Gainsight and see what others
have contributed
Community
Express Office Hours
Once a week Gainsight will
hold ‘open’ office hours for
Express Customers to ask
question or seek help
General Webinars
Gainsight does frequent
webinars on different success
processes as well as product
training available to all
customers
Training Webinars

21. Child-like Joy
©2015 Gainsight. All Rights Reserved.
How Implements
Customer Success
Jennifer Dearman
Director of Strategic Customer
Engagement

22. #1
90%
MORE THAN
FORTUNE
500
of the
use
PRODUCTS &
SOLUTIONS. *
REDHAT
* Red Hat client data, 2014
85
WORLDWIDE
OFFICES
35
COUNTRIES
SOLUTIONS
AWARD-WINNING
500
S&P
COMPANY
RHT
NYSE:
~7,500
EMPLOYEES
OPEN
SOURCE
LEADER
The world's leading developer and supplier
of open source software for enterprise IT

23. Open Source to the Enterprise
REDHAT JBOSS
MIDDLEWARE
REDHAT
STORAGE
REDHAT
ENTERPRISE LINUX
REDHAT ENTERPRISE LINUX
OPENSTACK PLATFORM
REDHAT
ENTERPRISE
VIRTUALIZATION
REDHAT
SATELLITE
REDHAT
CLOUDFORMS
1M+
projects*
* www.blackducksoftware.com/oss-logistics/choose
REDHAT
ENTERPRISE LINUX
ATOMIC HOST
REDHAT
MOBILE

24. Red Hat Subscription Model
MULTI-LINGUAL
24 HOURS / 7 DAYS A WEEK
UNLIMITED INCIDENTS
MULTI-CHANNEL
MULTI-VENDOR CASE
OWNERSHIP
CUSTOMER PORTAL
& FORUMS
KNOWLEDGEBASE
HARDWARE
CERTIFICATION
SOFTWARE
CERTIFICATION
TRAINING CURRICULA
(OPTIONAL)
STABILITY WITH A
PRODUCT LIFE CYCLE
OF UP TO 10 YEARS
SOFTWARE
ASSURANCE
SECURITY RESPONSE
TEAM
UPDATES
PATCHES
UPGRADES
CLOUD PROVIDER
CERTIFICATION
COMMITMENTS
ACCESS LABS
EXPERTISE
ONGOING DELIVERY
TECHNICAL SUPPORT
AWARD-WINNING
SUPPORT
YEARS
AWARDED:
2011
2012
2013
2014
2015

25. It’s a disciplined approach of having:
The right customer engagement strategy
Easeofacquisition&exit
Subscription economy
http://blogs.forrester.com/kate_leggett/14-05-15-what_is_customer_success_management_and_why_is_it_important
https://hbr.org/resources/pdfs/tools/SAS_Report_April2014_webview.pdf
Empowering customer success managers with customer, financial,
feedback and other data so that they can have the right conversations
with their customers”
5500
Customers must
realize the
economic value of
their investments
“For companies providing
products and services via
subscription, actively managing
customer relationships to ensure
their satisfaction and ongoing
patronage becomes a critical step
in preserving their revenue
stream.”
Defining and following standardized engagement processes &
experience design
Hiring the right profile and operationally managing the team
Open jobs for
Customer Success
Managers
1
2
3
4
“Customer success management is not about technology, or about account
management.”
ROI of active relationship management
Churn Retention, Adoption, Growth
Customers Have Choices

26. Our Journey to Customer Success
• Case management
• Break fix support
• Technical Account
Managers
• Support Relationship
Managers
• Voice of Customer
• Value of subscription
• Customer success tied to business
outcomes and value
• Scalable engagement
• Focus on customer journey
• Continuous and prescriptive
engagement
REACTIVE PROACTIVE ENGAGEMENT+

27. Designed to accelerate the path to achieving
targeted business outcomes by maximizing the
value of your Red Hat subscription.
Through continuous engagement and timely
delivery of tailored resources, content, and tools,
Red Hat Customer Success elevates our
partnership to help you achieve your business
goals.
Customer Success
Onboarding
your team to help them realize the
most value of your technology
investments
CUSTOMER
Supporting
product adoption by
providing timely & relevant
resources and tools
Serving as a
named resource and advocate
within Red Hat
Driving desired
business outcomes through
continuous engagement

28. Customer Success Goals
Proactively engage 100% of
customers with continuous and
relevant content
Increase product adoption
and deliver greater
business value
Predict and protect subscription
renewals and drive growth and
advocacy

29. Success planning
Quarterly business reviews
Customer Dashboard
DECISION MAKER
Product Roadmap Session(s)
Health monitoring & monthly Touchpoints
Targeted Nurture Campaigns for adoption
KEY INFLUENCER END USER
Product Getting Started (Portal)
Targeted Nurture Campaigns around
product/feature adoption & best practices
(labs, portal content, security, etc)
Understanding Customers
DEMONSTRATING VALUE DELIVERING VALUE
Aligning IT initiatives with
business goals
Doing more with less
Ensuring solutions operate to
compliance standards and are
interoperable
Key
Challenges
Engagement
Tactics
Implementing practical solutions that
solve serious
business problems
Improving efficiency, flexibility, and
scalability
Avoiding redundancies
Rapidly deploying new technologies with
existing
experience
Completing tasks not enabled by the
current UI
Spending less time automating tasks and
more time
preventing disruption
Facing a recurring problem that could be
fixed with an
alternative, unapproved solution

30. Customer Success Approach
RHT CSM
RHT Digital
Premium+
Premium
Standard
Marketing Managers
CUSTOMER BASE ENGAGEMENT
1:Many CSM to account ratio
1:Few CSM to
account ratio
RHT Digital
RHT
Sales
RHT TAM
RHT
Sales
RHT CSM RHT Digital

31. Transform customer
success processes
Predict and track
customer health
Touch customers
at scale
Why Gainsight?
New
Resources
Customer Success Roles Playbooks & Scalable Engagement
Customer Lifecycle
Management tool
HIGH TOUCH
STANDARD TOUCH
TECH TOUCH

32. Customer Summary
Summary of customer health across critical metrics with the ability to view over time to see exactly
why overall scores changed

33. Snapshot of Customer Portfolio Health
View customer portfolios to look for trends in health attributes

34. Executive Reporting
Executive dashboards to track productivity of customer success managers by engagement models

35. Child-like Joy
Jennifer Dearman
Director of Strategic Customer
Engagement
Redhat
jdearman@redhat.com
Dhaval Moogimane
Partner
Waterstone Management Group
dmoogimane@waterstonegroup.com
Andrew Knosp
Vice President of Services
Gainsight
aknosp@gainsight.com
Questions?