2014 Customer Success Salary Survey Report By Totango


Published on

The 2nd annual Customer Success Salary Survey Report (formerly State of the Profession: Customer Success report) brings in details of compensation trends, goals, challenges, and successes.

See the infographic and read the full blog here: http://v.alue.co/1qmZvzJ

2014 Customer Success Salary Survey Report By Totango

  1. 1. PRESENTS Formerly the State of the Profession: Customer Success report   2014  Customer  Success  Salary  Survey   1   CUSTOMER SUCCESS SALARY SURVEY REPORT
  2. 2. TABLE OF CONTENTS 2014  Customer  Success  Salary  Survey   2   •  Introduction 3 •  Compensation Structure Trends 6 •  Customer Success Annual Compensation Distribution 2014 7 •  Customer Success Annual Compensation Distribution Comparison 8 •  Median Compensation Range By Title 9 •  Average Compensation By Title In 2014 10 •  Average Compensation By Title (2013 And 2014 Comparison) 11 •  Participant Breakdown (By Title And Background) 12 •  Participant Breakdown (By Vertical) 13 •  How Long Has Your Company Had Customer Success? 14 •  Where Do The Respondents Report To? 16 •  The Goals Of The Customer Success Team 17 •  Where Are They Performing The Best? 18 •  Where Are They Facing Challenges? 19 •  What Tools Are They Using? 20 •  Customer Success Successes 21 •  What Is Your Customer Success Strategy? 22
  3. 3. INTRODUCTION This installment of the Customer Success Salary Survey will bring in highlights of this year’s findings compared to those of last year’s first ever report. We received 206% more responses than we did last year – which could attest to the fast growth of the Customer Success field. Our participants this year came from a very wide variety of verticals, which will be broken down in a later slide. Most importantly, the purpose of this report is to analyze Customer Success compensation trends in the past year at various levels and also to take a deeper look into their goals, challenges, and successes. Let’s take a look! 2014  Customer  Success  Salary  Survey   3  
  4. 4. 3 2014  Customer  Success  Salary  Survey   4   CUSTOMER SUCCESS SALARY SURVEY RESULTS
  5. 5. COMPENSATION STRUCTURE TRENDS 54% 28% BASE SALARY ONLY RECEIVE BONUS IN ADDITION TO BASE SALARY RECEIVE COMMISSION IN ADDITION TO BASE SALARY From the participants, 20% received only base salary without further incentives. While the rest received a combination of base salary and further compensation. More than half (54%) of those who got additional compensation received a bonus for things like MBOs (e.g. training, team/company performance, quarterly objectives, implementations, case studies conducted, etc.); while 28% of them received additional commission on things like % of yearly renewals, % of churn goals attained, and % of upsells. 2014  Customer  Success  Salary  Survey   5   20%
  6. 6. 6% 13% 29% 16% 11% 8% 17% CUSTOMER SUCCESS ANNUAL COMPENSATION DISTRIBUTION - 2014 1. $75K-$100K (29%) 5. $125K-$150K (11%) 2. $175K+ (17%) 6. $150K-$175K (8%) 3. $100K-$125K (16%) 7. $0-$50K (6%) 4. $50K-$75K (13%) Here is this year’s annual compensation distribution for Customer Success professionals: 2014  Customer  Success  Salary  Survey   6   2014 $150K -175K $175K+ $125K -150K $100K -125K $75K -100K $50K -75K IN ORDER OF PREVALENCE $0-50K
  7. 7. 6% 13% 29% 16% 11% 8% 17% 10% 14% 22% 24% 17% 4% 9% CUSTOMER SUCCESS ANNUAL COMPENSATION DISTRIBUTION COMPARISON 2014  Customer  Success  Salary  Survey   7   In general, there is an increase in compensation in the higher ranges. 2014 $150K -175K $150K -175K $175K+ $0-50K $125K -150K $100K -125K $75K -100K $50K -75K 2013 $175K+ $0-50K $50K -75K $75K -100K $100K -125K $125K -150K
  8. 8. MEDIAN COMPENSATION RANGE BYTITLE DIRECTR *Includes Customer Success Managers 2014  Customer  Success  Salary  Survey   8   C-LEVEL & VP $175,000+ DIRECTOR $125,001-150,000 MANAGER* $75,001-100,000
  10. 10. AVERAGE COMPENSATION BYTITLE 2013 AND 2014 COMPARISON $94,864 $135,062 $159,168 $90,750 $130,769 $181,250 CUSTOMER SUCCESS MANAGER DIRECTOR OF CUSTOMER SUCCESS VP OF CUSTOMER SUCCESS 2013 2014 2014  Customer  Success  Salary  Survey   10  
  11. 11. 2014  Customer  Success  Salary  Survey   11   MEET OUR SURVEY PARTICIPANTS
  12. 12. 2%11% 29% 50% 8% BYTITLE C-LEVEL VP DIRECTOR MANAGER OTHER *Includes  Customer  Success,  Customer  Rela@ons   **Includes  Nonprofit,  Engineering,  Consul@ng,  Project  Management   On average they had about 3 years and 9 months experience in the burgeoning field of Customer Success. Some were even certified in areas such as Google Analytics, Salesforce, project management, 6 Sigma, marketing automation, and other technical aspects. PARTICIPANT BREAKDOWN 19% 19% 17% 5% 4% 1% 35% BY BACKGROUND Account Management (19%) Support/Services (19%) Sales (17%) Customer Facing* (5%) Marketing (4%) Finance (1%) Other** (35%) 2014  Customer  Success  Salary  Survey   12  
  13. 13. COLLABORATION/MANAGMENT 26% 18% 11% 6% 6% 33% COLLABORATION/MANAGMENT (26%) CUSTOMER/CRM (18%) MARKETING (11%) ANALYTICS (6%) ACCOUNTING/FINANCE (6%) OTHER (33%) CUSTOMER/CRM MARKETING OTHERACCOUNTING/FINANCEANALYTICS •  IT/Application Management •  Human Resource Management •  Content Management •  Project Management •  Business Process Management •  Call Center •  Community Site Services •  Salesforce Automation •  Help Desk Management •  Customer Relationship Management (CRM) •  Business Intelligence •  Web Analytics •  Accounting/Financial •  Expense Management •  Portfolio Management •  Compliance and Risk Management •  Product Lifecycle Management •  Marketing •  eCommerce •  Web Development •  Productivity •  Manufacturing Solutions •  Procurement •  Other PARTICIPANT BREAKDOWN BY VERTICAL 2014  Customer Success  Salary  Survey   13  
  14. 14. HOW LONG HAS YOUR COMPANY HAD CUSTOMER SUCCESS? Although the percentages haven’t changed much compared to last year, there has still been a slight increase in the categories that show more than one year of having had Customer Success. On average there are about 25 people on these Customer Success teams based on data from our participants. In the mix are larger and smaller companies which typically do range in size. The largest team size reported has more than 500 members and the smallest with just one. 2014  Customer  Success  Salary  Survey   14   2% 22% 37% 38% 1% O MONTHS (GETTING STARTED) <1 YEAR 1 TO 3 YEARS 3 OR MORE YEARS NOT SURE TEAM SIZE: AVERAGE: 25 PEOPLE LARGEST: 500+ SMALLEST: 1
  15. 15. STATE OF THE PROFESSION: CUSTOMER SUCCESS 3 2014  Customer  Success  Salary  Survey   15  
  16. 16. WHERE DO THE RESPONDENTS REPORTTO? CUSTOMER SUCCESS e.g. Marketing, Revenue, Product, Professional Services   2014  Customer  Success  Salary  Survey   16   CEO SALES CHIEF CUSTOMER OFFICER COO/ OPERATIONSOTHER
  17. 17. The survey participants were asked to identify what the goals of their Customer Success team were from, and top results were as follows : THE GOALS OF THE CUSTOMER SUCCESS TEAM GOALSthat showed up In the “Other” category included: •  Customer Service/Support •  Team Training •  Onboarding/Customer Activation •  Adoption •  Customer Advocacy/Loyalty Growth 2014  Customer  Success  Salary  Survey   17   CHURN REDUCTION – RENEWALS – UPSELLS – IMPACT PRODUCT DEVELOPMENT– OTHER – 79% 76% 64% 56% 33%
  18. 18. WHERE ARE THEY PERFORMING THE BEST? Over half (56%) of all participants felt they were excelling at churn reduction, and 50% felt they were doing a good job at renewals. With their job revolving around the needs and uses of their customers, 40% felt they were successful at impacting product development, and 31% found they were performing well with upsells. Of course, Customer Success professionals focus on a lot more than these four overarching goals. 20% of the participants felt they were achieving other goals optimally as well. Such things included getting references, increasing product adoption, providing support, and improving customer satisfaction. 2014  Customer  Success  Salary  Survey   18   CHURN REDUCTION (56%) 1 TOP PERFORMERS RENEWALS (50%) 2 IMPACTING PRODUCT DEVELOPMENT (40%) 3 UPSELLS (31%) 4 OTHER (20%) 5
  19. 19. Of course there is always a learning curve as a company builds out their Customer Success team and processes. Not surprisingly, 56% felt scaling or transitioning the team/processes was the biggest challenge they faced. Other areas where Customer Success professionals are facing challenges are: With “Other” consisting of challenges like: •  product issues •  integration with other teams •  buy-in from upper management •  measuring the impact of their work on the company’s revenue •  customer-requested features not on product roadmap WHERE ARE THEY FACING CHALLENGES? 2014  Customer  Success  Salary  Survey   19   Defining the Customer Journey – 40% Defining the goals and/or Customer Success role – 37% Onboarding processes – 35% Customer Visibility – 27% Other –17%
  20. 20. 16% 32% 43% 45% 73% 84% OTHER CUSTOMER ENGAGEMENT MANAGEMENT EMAIL AUTOMATION HELP DESK WEB MEETING CRM WHATTOOLS ARE THEY USING? Here are some of the “Other” top tools they’re using daily in Customer Success: analytics, customer communities, spreadsheets, and in-house project management tools. 2014  Customer  Success  Salary  Survey   20  
  21. 21. CUSTOMER SUCCESS SUCCESSES ACHIEVEMENTS & PROUD MOMENTS FROM OUR PARTICIPANTS: ²  A successful first user’s group conference where clients were blown away by the personalized service their Customer Success team provided ²  Starting the Customer Success team from scratch, making it operational and scalable ²  Turning an unhappy/lost customer into a renewal ²  Transforming an Account Management team into a Customer Success team ²  Being able to develop product lineup with customer needs ²  Recognition by executive staff of the critical role of Customer Success ²  Attaining Trusted Advisor status ²  Finding a work-around for a customer that the technical team hadn’t thought of ²  Customers complimenting CEO on their Customer Success team 2014  Customer  Success  Salary  Survey   21   Despite the challenges, our participants have won many victories, both internally and externally.
  22. 22. Totango is the leader in customer success management for SaaS and online subscription businesses. We help companies take a data-driven approach to reducing churn and driving customer acquisition, onboarding, renewals and upsells. Totango monitors customer behavior in applications, along with data from CRM, billing and other systems, to generate insights on customer health and engagement. The solution combines big-data analytics with powerful segmentation and predictive tools to understand which customer needs attention and why. Find more Customer Success resources at www.totango.com/resources. 2014  Customer  Success  Salary  Survey   22   WHAT IS YOUR CUSTOMER SUCCESS STRATEGY?