Customer Success as a movement is so young even compared to other emerging tech sectors. But it's changing so fast it can be hard to justify it to your financial department. Scott Golden, Gainsight's Director of Customer Success Strategy, will deep dive into a data-driven webinar all about how you can account for Customer Success in such a rapidly-evolving industry.
11. Should you Charge for Customer Success?
Omid RazaviEmerging Customer
Success Roles
12. Emerging Roles Within Customer Success
Yes
60%
No
40%
Renewal
Resources
Yes
61%
No
39%
Solution
Architects
No
54%
Yes
46%
Customer
Marketing
No
53%
Yes
47%
Success
Operations
This person is typically
hired after acquiring more
than 150 customers
It is a must-have role if
the Customer Success
Team owns or forecasts
the retention and
expansion number
These types of resources
are typically “floaters” that
will help drive a project if
the needs are beyond a
CSM’s technical
capabilities
This role will continue to
grow in prominence; our
data shows Customer
Success Teams have
doubled in prominence
over the last 12 months
The Operations role is
key once you have
invested in a Customer
Success platform and
your processes mature
from reactive or gut-feel
to data-driven
13. Should you Charge for Customer Success?
Omid Razavi
Aggregate CSM Team Costs
19. CSM Cost Accounting Matrix: By Department
Responsibility DepartmentCOGSSales&Mktg.
4 of the 7 companies
are aligning their
costs by department
with an even split
between COGS and
Sales & Marketing
20. CSM Cost Accounting Matrix: By Department, Large Cos, S&M
Responsibility DepartmentCOGSSales&Mktg.
Large SW Cos.
Transitioned from
Renewals
Sits within Sales org
Still owns renewal
21. CSM Cost Accounting Matrix: By Department, COGS
Responsibility DepartmentCOGSSales&Mktg.
Transitioned from
Support
Sits within the support
org
No commercial
responsibility
22. Responsibility Department
COGSSales&Mktg.
CSM Cost Accounting Matrix, Responsibility
3 of the 7 companies are
aligning their costs by the
responsibility of the
resources that sit within the
Customer Success Team
24. Responsibility Department
COGSSales&Mktg.
CSM Cost Accounting Matrix, Responsibility, Easy Split
Mapped all responsibilities of
CSM as % of time
Allocates that % between
S&M v COGS
Commercial responsibility is
key delineation point
25. Commercial Responsibility Is Driving S&M v. COG Accounting Split
Commercial
Responsibility
Product Training
Technical Support
Strategic Advice
Contract Renewal
License Up-Sell
Product X-Sell
Support & Training SalesDepartment
Expense TypeCOGS Sales & Marketing
0% 100%
26. Should you Charge for Customer Success?
Omid RazaviCustomer Success
ROI Levers
27. The Financial Impact of Customer Success
Impact
Churn
Revenue
Expansion
Net New
Business
1 2 3
28. The Financial Impact of Customer Success: Churn Impact
Impact
Churn
# of customer saves
within a given time period
Lever Measurement
Save = Red to Green
shift in health score
Time Period = 6 months
before renewal
Input
29. The Financial Impact of Customer Success: Revenue Expansion
Revenue
Expansion
Up-sells & X-sells closed
Lever Measurement
# of closed deals
Expansion revenue
closed
Input
# of expansion leads
identified
# of leads
Average expansion
deals size
30. The Financial Impact of Customer Success: Net New Business
Net New
Business
Lever Increase the # of advocates
Increase # of SQLs
Increase the # of references
Increase close rate