An Account Hierarchy is used to model parent and child account structures. Admins can create a hierarchy upto five levels. An Account hierarchy can be viewed on the C360, Account, and Opportunity widgets.
If an organization acquires another organization, the latter becomes a child of the former company. For instance, in the image shown below J.P. Morgan Chase is the parent company which has three organizations, nested in it. JP Morgan is at the top most level and rest three are at the second level. You can create another three levels of hierarchy within any of the three child organizations of JP Morgan.
Advantages of Account Hierarchy
Enhanced visibility: With Account hierarchy, you can easily view the parent company and all its child companies at one place and also know how much is the total sales, profits, churn in different child companies.
Higher levels of nesting: Account Hierarchy in Gainsight offers you to create a nested relationship of upto five levels thus ensuring that you can capture at the most granular level. With this feature, you can have an Account Hierarchy in which a branch office in small town report to its state office, the state office report to Country head quarters and the country head quarters report to regional head office (APAC, EMEA etc). The main office to which regional head office report to would be the ultimate parent company.