The Official SaaStr Podcast: SaaS | Founders | Investors

SaaStr 794: The Top 10 Customer Success Metrics Investors Care About in 2025 with Gainsight CEO Nick Mehta

87 snips
Mar 14, 2025
In this insightful discussion, Nick Mehta, CEO of Gainsight, sheds light on the top customer success metrics that matter to investors, particularly in challenging markets. He emphasizes the importance of net retention and gross retention while sharing strategies to enhance customer stickiness. Nick also draws a captivating analogy between entrepreneurship and climbing Mount Kilimanjaro, highlighting resilience and teamwork. With a wealth of experience, he provides valuable insights for SaaS companies looking to secure investments and demonstrate customer value.
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ADVICE

Net Retention Rate Deep Dive

  • Understand Net Retention Rate (NRR) but recognize its limitations as a vanity metric.
  • Break down NRR levers (upsells, churn, etc.) and develop targeted strategies for each.
INSIGHT

Cohort-Level Gross Retention

  • Cohort-level gross retention provides a clearer picture of customer health than overall retention.
  • Analyze cohorts to see if retention is improving or worsening for newer customer groups.
ADVICE

Early Warning Indicators

  • Develop early warning indicators for churn, like Gainsight's DEAR framework (Deployment, Engagement, Adoption, ROI).
  • Share these indicators with investors, even if statistical significance isn't fully established yet.
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