In the realm of category creation, the journey to success is more akin to a marathon than a sprint. One might ponder, how do we even define the success of a category? Mike Berger, from Episode 14 of COLD ONES, has the answer! One significant indicator is whether leading analyst firms like Forrester or Gartner have recognized the category with their renowned Magic Quadrants or Waves. These organizations respond to market demand, and their acknowledgment signifies a substantial buyer interest.
Take Gainsight, for instance, often heralded as the poster child of category creation. Despite its pioneering role, it wasn't until last year that Forrester released its inaugural Wave for customer success platforms, and Gartner is yet to follow suit. This highlights the protracted nature of category recognition. Nick Mehta joined Gainsight in 2013, four years after its founding in 2009, and it took a decade for a major analyst firm to produce a comprehensive research report on customer success platforms.
Creating a category is no small feat. It demands time, thought leadership, and significant influence. In the traditional business model, sales and marketing were the primary drivers of growth, responsible for revenue generation. However, Gainsight operated within the subscription-based business model, primarily targeting SaaS companies. Their focus was on ensuring continuous value delivery, essential for sustaining and growing revenue in a subscription model.
In the subscription era, the functions driving growth extend beyond just sales and marketing. Product development gains prominence, particularly in Product-Led Growth (PLG) companies, where a subpar product experience can hinder success. Customer success becomes crucial, integrating people, processes, and technology to ensure clients derive maximum value from their subscriptions. Additionally, account management plays a vital role, as expanding accounts hinges on delivering consistent success and value.
The landscape of technology expectations has also evolved. The consumerization of technology has raised the bar for user experiences, even within enterprise software. Where users once tolerated mediocre experiences, today's standards are significantly higher.
In essence, the path to defining success in category creation involves multiple facets and functions, each contributing to the overarching goal of sustained growth and value delivery. It's a nuanced process, reflective of the intricate dynamics within modern subscription-based businesses.
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