The document discusses the implementation of variable compensation models to enhance customer success within organizations. By focusing on metrics and performance, companies can motivate employees and drive substantial growth, with the Resumator achieving a 13% reduction in churn after adjusting their compensation plans. Key strategies include aligning compensation with performance goals, using contests to boost short-term results, and fostering teamwork.

1. Produced by
To Variable, or Not To Variable?
Choosing a Customer Success Comp Model

2. We help over 3000 companies hire Performers.
One of our company values is “Performers Only.”
Performers are employees who transform teams and companies by aligning
themselves to their company’s mission and consider their company’s
success critical to their own.
The Resumator
Companies who embrace a Performers Only approach
can expect to see 2x profit and 3.5x revenue.

3. Performer
Salary
Commissi
on
Bonus
SPIFs
Contests
Benefits
Compensation plans for
Performers include a mix:
• Salary needs to be correct for the
market and role
• Variable comp of some variety is
almost always the right decision
• Contests and SPIF’s help keep
things fun for the team
• Benefits can, if they unique or
valuable, offset some of the need
for variable comp or high salaries
Compensation for Success Teams

4. Why Variable Comp?
It Motivates
Hiring Performers in your organization means that you likely already have motivated
people. Variable comp can help to drive exponential change in your organization by
pushing already great employees even further.
It Focuses
Your customer success team is busy with customer requests and competing priorities.
Variable comp can focus your team on the 1-2 key metrics that will drive real change for
your organization.
It Rewards
Performers want to feel appreciated for their efforts. Variable comp can create a
performance culture that rewards the employees who work the hardest and achieve the
best results.

5. Variable Comp Considerations
Results and Behavior
Consider both as you design variable comp plans so that you don’t drive bad behaviors in
order to achieve the results you’re looking for.
Salary/Variable Split
Timeline
The timeline for variable payment should align with the timeline for goals. Monthly goals =
monthly variable, annual goals = annual variable.
Clear Goals
For every variable plan, including bonus plans, there should be concrete goals and
metrics, communicated in writing, at the beginning of each timeline.
Customer Service Sales
More Salary More Variable

6. • Renewals, Expansion Revenue, Totango Health Scores, Retention
Account Management
• Onboarding, Totango Engagement Scores, Retention
Professional Services
• Customer Satisfaction, Totango Health Scores, Response Time
Technical Support
• Team Initiatives, Totango Health and Engagement Scores, Retention
People Management
What Should The Goals Be?
Specific – Measurable – Attainable – Realistic – Timely

7. When to Use Contests and SPIFs
Drive Short-Term Behavior
If you have a short-term goal you’re trying to achieve (end of quarter retention number, end
of year up-sell number) contests can be an effective way to push your team.
Introduce New Products or Processes
Contests can help to establish new processes and get your team used to talking about new
products. They shake up old habits and help form new ones.
Focus Your Team
During distracting times of year – summer, holidays – contests and SPIFs can help keep
your team focused on the job and achieving goals.
Bring Teams Together
If you have a new team or if your team is struggling with another team in your company, a
contest that emphasizes working together can help strengthen teamwork.

8. Resumator Success Team
• 2/3 Salary, 1/3 Variable – Paid Monthly (3rd Iteration)
• Commission based annual plan signups
• Bonus based on retention
Account Managers
• 100% Salary – High End of Range
• Contests and Group Events for Incentives
• Career Path Coaching
Technical Support
• 100% Salary – High End of Range
• Travel is a part of this role and seen as a benefit
• Introducing a bonus based on successful onboarding
Implementation
• Salary + Bonus – Paid Quarterly
• Bonus based on achievement of quarterly MBO’s
• Ongoing management coaching and development
People Managers
Compensation varies based on Role & Location

9. Resumator Results
De-Risking Our Customer Base
In the 2 months since introducing our new account manager variable plans we have
reduced churn risk by 13%.
Focusing on Quality
The technical support team can focus on improving the quality of interactions and
engagement without worrying about commission. This has also improved the quality of
hires we make – there has been 0% turnover in the past year.
Identifying Leaders
We recently promoted 2 team members to leadership roles because they stood out as
Performers in their original roles. One of the benefits our team offers is leadership training
for those interested in moving into a management role.

10. Produced by
Q&A
Kristen Hayer
Vice President, Customer Success
khayer@theresumator.com
www.TheResumator.com