The document outlines a compensation planning model for customer success management, emphasizing a structure that rewards performance in areas such as adoption, renewals, and add-on revenue. It highlights the importance of having clear metrics, strategic themes, and the integration of short-term incentives to drive desired behaviors. Additionally, it provides industry benchmarks for customer success professionals, noting average compensation and trends in variable compensation plans.

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Compensation Planning: Developing a
CSM Incentive Model
Moderator: Jeff Epstein, Venture Partner at Bessemer
Bernie Kassar, SVP of Customer Success and Support at Xactly
Chris Sirosky, VP at Dynatrace

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SVP, Customer Success &
Support
Bernie Kassar

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Objectives
Customer Success Focus Areas
• Adoption
• Renewals
• Add-On Revenue
• Customer References
Guiding Principles for FY16 Comp Plans
• Simple and easy to understand payouts
• Reward performance and driving the right behaviors
• Appropriate plan mechanics for each measure

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Customer Landscape
Enterprise
Medium Size Business
SMB
3001+ Employees
Up to 350 Employees
351 - 3000+ Employees

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VariableVariable
Base PayBase Pay
Current Compensation & Team Model
80%80%
20%20%
Customer Success Representatives
• Adoption
• Renewals / Add-Ons
Customer Success Managers
• Success Blueprinting
• Adoption
• Renewals / Add-Ons
Customer Success Representatives
• Adoption
• Renewals / Add-Ons
Customer Success Managers
• Success Blueprinting
• Adoption
• Renewals / Add-Ons

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Current Compensation Structure - CSR
Plan Components
• 30% Corporate Plan / 35% Renewals / 35% Add-On’s
Incentive Plan Type
• % to Goal (Renewals / Add-On’s)
Performance Period
• Mix of YTD & Quarterly
Payout Frequency
• Quarterly
CustomerSuccess
Representatives

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Current Compensation Structure - CSM
CustomerSuccessManagers
Plan Components
• 30% Corporate Plan / 70% MBO
MBO Types
• Customer Strategy / Renewals / Customer Success Program Assets
Incentive Plan Types
• Mix of % to Goal & Binary
Performance Period
• Mix of YTD & Quarterly
Payout Frequency
• Quarterly

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Lessons Learned
• No More than 3 Comp Plan / MBO Components
• Use Concrete Metrics or Definable Measures
• Introduce Quarterly Strategic Themes w/SPIFS
• Create Quarterly or Bi-Annual Plans
• President’s Club Eligibility

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THANK YOU

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VP – Customer Success
Chris Sirosky

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Balancing Priorities – Comp Planning 101
• Fiscal Responsibility
• Strategic Initiatives
• Regional Nuances
Business Objectives
• Realistic Goals
• Nullifying Dysfunction
• Financially Rewarding
Driving Behavior

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MBOs and Comp Structure
• Multiple components, weighted to
renewals:
• On Premise Maintenance and
SaaS Subscriptions
• Services: Training and
Consulting
• Team versus individual goals
• Balancing components, when you
have:
• Evolving product portfolio
• Regional realities

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Lessons Learned
• Consensus is achieved at 80% tolerance
• Engineering for effectiveness also
means efficiency in execution
• Partner closely with Human Resources,
particularly in global organizations
• Understand your partner distribution
model
• Analyze outcomes for improving forward
designs
• Budget for spot bonuses; make them
fun!

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THANK YOU

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CSM Compensation
Benchmarks

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The Customer Success industry is growing and attracting seasoned professionals
Customer Success Index: Industry Compensation (183 responses)
The avg. career length of a Customer
Success Professional is 10-20 years
The avg time a professional has spent in
Customer Success in 1-3 years
Response%
Years Years
Median
Median

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There is money to be made in Customer Success
US & Canada - Avg
Compensation by Role
Rest of World - Avg
Compensation By Role
On average, a
CSM in the US &
CA makes ~$100K
On average, a
CSM in the US &
CA makes ~$100K
Customer Success Index: Industry Compensation (183 responses) Base Variable

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Revenue retention and expansion still drive most variable comp plans for CS
Customer Success Index: Industry Compensation (166 responses)
Variable Comp Levers Variable Comp Payout Cadence
Monthly
Quarterly
Annually