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Customer Success Incentives and Compensation

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Customer Success Incentives and Compensation

  1. 1. Customer Success Incentives & Compensation January 7, 2015
  2. 2. Housekeeping • Q&A panel on your right • Recording for colleagues who can’t make it • All attendees will receive slides • Twitter hashtag #customersuccess
  3. 3. Our Speakers Dan Steinman Chief Customer Officer @dantsteinman Bernie Kassar SVP, Customer Success & Support @XactlyCorp
  4. 4. About Xactly
  5. 5. What We’ll Cover 5 Questions: 1. Why is now the time to have a compensation conversation? 2. What are the considerations at different phases of a company lifecycle? 3. Should CSMs be on a variable compensation plan? 4. Team metrics or individual metrics? 5. What does a model CSM compensation plan look like? Audience Q&A to Follow
  6. 6. 1. Why is now the time to have a compensation conversation?
  7. 7. Q1 Compensation Planning • Calendar or Fiscal Q1 • Hot Button Topics
  8. 8. 2. What are the considerations at different phases of a company lifecycle?
  9. 9. Things to Consider • Size of Company • # of Accounts • Span of Responsibility • Onboarding Ownership? • Support Ownership? • Others?
  10. 10. 3. Should CSMs be on a variable compensation plan?
  11. 11. To Variable or Not to Variable Customer Success Managers are rewarded, not incentivized, by their compensation plan. Pros to Salary Only: Predictable, eases complexity due to account assignments, territories, etc. If done the right way, a variable compensation model can align CSM as a revenue-driving organization.
  12. 12. 4. Team Metrics or Individual Metrics?
  13. 13. Individual Compensation Plan Individual comp plans are really about adoption and are measured by account coverage and number of touches. Benefits of Individual: • More Accountability • More In Control of Their Destiny Key Questions: • Comp or MBO? • Double Comp?
  14. 14. Team Compensation Plan Team comp plans are based on a quarterly churn number and can be influenced by add-on business. • 80% of Target or Lower, Floor (No Pay) • 100% of Target, Success • 110-150% of Target, Accelerators Team metrics drive collaborative behavior across the team and discourages lone wolf operation.
  15. 15. 5. What does a model CSM compensation plan look like?
  16. 16. Sample Compensation Plan How many components? Rule of 3: • Net Retention • Customer Sat (NPS) • Up-Sell / Add-Ons Customer Health Scores and Compensation Planning
  17. 17. Thank you! January 7, 2015

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