• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

3

Current price of oil as of May 19, 2026

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

3

Current price of oil as of May 19, 2026
Fortune Data

‘Customer success’ software is getting hot

By
Brittany Shoot
Brittany Shoot
Down Arrow Button Icon
By
Brittany Shoot
Brittany Shoot
Down Arrow Button Icon
June 30, 2014, 2:14 PM ET
Preact's Revenue Maximizer.
Preact's Revenue Maximizer.Courtesy: Preact

In an op-ed for the Wall Street Journal last year, the prominent investor Marc Andreessen pointed out what has become common wisdom in Silicon Valley: thanks to software, it no longer costs tens of thousands of dollars to build a company.

Preact, a small company based in San Francisco, hopes that lesson applies to customer retention, too.

The startup believes that businesses shouldn’t be spending fistfuls of money acquiring new customers, which is expensive. Rather, businesses should spend comparably less money keeping their existing customers happy.

Two years ago, the company decided to automate this process and base it in the cloud. With a blend of behavioral science, machine learning, and big data analytics, the company says it can predict whether customers will churn, renew, or upgrade based on their past behavior. (“Don’t react,” the company insists. “Preact.”) When a client stops using a piece of software, the business behind it will be notified. And when a power user logs a support ticket, that action is given additional attention. (Preact’s software integrates with Gmail, Salesforce, Zendesk, and Marketo.)

Preact is part of a category called “customer success” software that seems to get more crowded with each passing month. Gainsight is arguably the leading firm; predictive services like Bluenose and Totango are also vying for a piece of the action. There’s nothing inherently new about using detailed analysis of past behavior to predict future performance, but the difference today is that the process can be automated and monitored across a global business.

Michael Geller, Preact’s chief executive, compares Preact’s automation to a Nest thermostat. “Literally, you just set it, and it learns the patterns of behavior in your house,” he says. “It even has a sensor to detect if people are there or not there.”

Though there is buzz around the category, it’s still quite young. Last year, Gainsight hosted in San Francisco the first annual Pulse Conference, at which about 300 people showed up to discuss the growing customer success space. This year’s conference drew 900 people and keynote speaker Malcolm Gladwell.

The conference is an attempt, in part, to define the space, says Anthony Kennada, Gainsight’s head of marketing. When Gainsight started out, “We couldn’t even get people to say ‘customer success,’ Kennada says. “People were marginalizing us as billing solution.”

That’s changing. Some experts say that customer success is the next big thing for the enterprise as well as small- and medium-sized businesses. “It takes about two to three years running a business to truly understand customer success—and see how big its impact is,” says Jason Lemkin, a partner at the early-stage enterprise venture capital fund Storm Ventures.

In the first two years of operation, Lemkin says, most companies have too little revenue and too small of a customer base to accurately predict behavior. “But by about year two and a half,” he explains, “You begin to see a pattern in the revenues. You see referrals and word-of-mouth showing up more and more often as the source of your largest customers. And by year three, you finally have a large enough established base that you can systematically grow it.”

That’s where customer success companies enter the picture. Preact co-founder and chief product officer Christopher Gooley explains that many founders and CEOs have learned the costs of customer retention the hard way. “Companies are not just trying to support and sustain but accelerate growth,” he says. With customer success software, “we don’t try to forecast. We identify users who are very likely to upgrade if you influence them somehow.”

RJMetrics has used Preact for about a year. “Before Preact, our account managers had to spend a lot of time investigating each of their accounts to find out how they had been engaging with our product and team,” explains Jake Stein, co-founder and COO of RJMetrics. “Preact makes that process 25% more efficient, and more importantly, improves the quality of the information that the account management team sees so they can most effectively target their efforts.”

Investors are hoping to ride the wave of interest in customer success. In March, Gainsight closed $21.4 million in a Series B funding round led by Battery Ventures, Summit Partners, and Bain Capital Ventures. In April, Preact received $4.6 million in Series A financing led by Trinity Ventures.

Customer success will eventually become standard for measure health and activity for each individual user and account, Geller says.

“Every user is a snowflake,” he says. “Every account is different.”

About the Author
By Brittany Shoot
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

schmidt
AIColleges and Universities
The sound of graduating from college in the AI summer of 2026: boo!
By Heather Hollingsworth, Jocelyn Gecker and The Associated PressMay 20, 2026
1 minute ago
massie
PoliticsElections
Trump gets revenge on Epstein rebel Thomas Massie in Kentucky GOP primary
By Jesse Bedayn, Dylan Lovan and The Associated PressMay 20, 2026
5 minutes ago
gen z
AIGen Z
3 reasons kids hate AI—especially the ones who refuse to even try it
By Nick LichtenbergMay 20, 2026
6 minutes ago
putin
AsiaChina
Days after Trump flies out of Beijing, Xi and Putin hail the best friendship in their history
By E. Eduardo Castillo, Simina Mistreanu and The Associated PressMay 20, 2026
6 minutes ago
Shaquille O'Neal
SuccessEducation
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: ‘Your character will take you further than your resume’
By Preston ForeMay 20, 2026
32 minutes ago
Accenture exec says the consulting giant is hiring more entry-level workers out of college compared to last year
Future of WorkWorkplace Innovation Summit
Accenture exec says the consulting giant is hiring more entry-level workers out of college compared to last year
By Emma BurleighMay 20, 2026
53 minutes ago

Most Popular

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
18 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
8 days ago
Current price of oil as of May 19, 2026
Personal Finance
Current price of oil as of May 19, 2026
By Joseph HostetlerMay 19, 2026
1 day ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
3 days ago
Employers are quietly pausing 401(k) matches again. The last time this happened was the 2008 recession and Covid
Personal Finance
Employers are quietly pausing 401(k) matches again. The last time this happened was the 2008 recession and Covid
By Courtney Vinopal and HR BrewMay 18, 2026
2 days ago
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
Travel & Leisure
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
By Rio Yamat and The Associated PressMay 18, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.