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Customer Success Management ( CSM ) Org Structures by Gainsight

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Gainsight CEO, Nick Mehta, talks about the 5 organization models of Customer Success prevalent today. Which model does your business follow?

Gainsight CEO, Nick Mehta, talks about the 5 organization models of Customer Success prevalent today. Which model does your business follow?


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Transcript

  • 1. Organizing for Customer Success September 2013
  • 2. New Business Models are Demanding Companies Focus on Customer Success Per-User Per-Cycle Per-Transaction
  • 3. Customer Success is a New Function in Most Companies • More Customer-Focused Than Sales • More Proactive Than Support • Not Many People Experienced in Field
  • 4. Companies are Looking for Advice on How to Structure Their CSM Organization • Where Should Customer Success Report? • How Does Customer Success Fit with Sales and Services? • How Does Customer Success Align to Other Functions?
  • 5. The Five Org Models of Customer Success 1. Firefighter CSM 2. Sales-Oriented CSM 3. Service-Oriented CSM 4. Integrated CSM 5. Partnership CSM
  • 6. Firefighter CSMs Common In Companies With: Early-stage companies CSM does support, renewals, etc. Pros: CSM is “one stop shop” CSM ensures great client experience Cons: Hard to scale with so many hats Difficult to hire for role CEO Sales Services Customer Success Management
  • 7. Sales-Oriented CSMs CEO Sales CSM / Renewals / Account Management Services Common In Companies With: Low level of product complexity Competitive sales/renewals Pros: CSM aligned to revenue Also aligned to up-sell Cons: Less customer focus Perceived as “another salesperson”
  • 8. Service- Oriented CSMs CEO Sales Services Customer Success Management Professional Services Training Onboarding Support Common In Companies With: Medium level of product complexity More mature organization Pros: CSM aligned to customer needs CSM also aligned to rest of service org Cons: Less revenue alignment / quantification Lots of touch points for client
  • 9. Integrated CSM CEO New Business Sales Chief Customer Officer Renewals / Account Management Customer Success Management Professional Services Training Onboarding Support Common In Companies With: Moderate level of product complexity Expansion opportunity Pros: CCO “owns” existing customers Sales team are pure hunters Cons: Requires versatile CCO Depends on mature organization
  • 10. Partnership CSM CEO Sales Renewals / Account Management Services Customer Success Management Professional Services Training Onboarding Support Common In Companies With: High level of product complexity Competitive sales/renewals Pros: CSM can be very customer-focused Renewals aligned with sales motion Cons: Some level of duplication / overlap Sometimes hard to quantify ROI
  • 11. Where Do You Fit? Business Maturity ProductComplexity Firefighter Sales- Oriented Service- Oriented Integrated Model Partnership Model
  • 12. Other Considerations Issue Best Practices Up-Sell Lives in Sales unless CSM owns all customer revenue If in Sales, incent CSM team for leads / opportunities created Retention / Customer Marketing Lives in Marketing but assign dedicated resource focused on existing customer marketing as part of virtual team Titles Customer Success Manager trending as Account Manager often has connotation of Sales
  • 13. Thank You! A Complete Customer Success Platform www.gainsight.com