This document summarizes a presentation about customer success incentives and compensation. It discusses 5 questions: 1) Why now is the time to discuss compensation, 2) Considerations for compensation at different company lifecycle phases, 3) Whether customer success managers should be on variable plans, 4) Whether metrics should be individual or team-based, and 5) What a model compensation plan looks like. The presentation was given by two speakers from Xactly and covered topics such as compensation planning timelines, variable versus salary-only plans, individual versus team metrics, and examples of compensation plan components.

1. Customer Success
Incentives & Compensation
January 7, 2015

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. Our Speakers
Dan Steinman
Chief Customer Officer
@dantsteinman
Bernie Kassar
SVP, Customer Success & Support
@XactlyCorp

4. About Xactly

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. 1. Why is now the time to have a compensation
conversation?

7. Q1 Compensation Planning
• Calendar or Fiscal Q1
• Hot Button Topics

8. 2. What are the considerations at different phases
of a company lifecycle?

9. Things to Consider
• Size of Company
• # of Accounts
• Span of Responsibility
• Onboarding Ownership?
• Support Ownership?
• Others?

10. 3. Should CSMs be on a variable compensation
plan?

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. 4. Team Metrics or Individual Metrics?

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. 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. 5. What does a model CSM compensation plan
look like?

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. Thank you!
January 7, 2015