Mais conteúdo relacionado Semelhante a Best practices in CSM compensation with customer success leaders (20) Best practices in CSM compensation with customer success leaders1. ©2015 Gainsight. All Rights Reserved.
Child-like Joy
Best Practices in CSM Compensation
with Customer Success Leaders
Scott Golden
Director of Customer Success Strategy
Gainsight
2. ©2015 Gainsight. All Rights Reserved.
The CSM Industry is Growing and Attracting Great Talent
1-5! 5-10! 10-20! 20-30! >30! 1-3! 3-5! 5-10! 10-20! >20!
Years! Years!
Median
Median
The Average Career Length of a Customer
Success Professional!
The Average Time a Professional Has
Spent in Customer Success!
3. ©2015 Gainsight. All Rights Reserved.
United States - Average
Compensation by Role!
Rest of World - Average
Compensation by Role!
Base ! Variable!
$K! $K!
$61 !
$52 !
$92 !
$128 !
$177 !
$265 !
$8 !
$15 !
$22 !
$37 !
$41 !
$94 !
Specialist!
Associate!
Manager!
Director!
VP!
CxO!
$10 !
$13 !
$15 !
$29 !
$200 !
Specialist!
Manager!
Director!
VP!
CxO!
There is Money to be Made in Customer Success
4. ©2015 Gainsight. All Rights Reserved.
Managerial Responsibility by Title
100%! 98%! 95%!
47%!
20%!
6%!
CxO! VP! Director! Manager! Associate! Specialist!
Dir. Reports! Ind. Contributor!
Response%!
5. ©2015 Gainsight. All Rights Reserved.
Current Compensation Levers for Customer Success
Customers Managed!
Revenue Managed!
Product Adoption!
Health Score!
NPS Score!
Gross Retention!
Up / X-sell!
Net Retention!
Variable Comp Levers
Response %!
13%!
25%!
48%!
64%!
42%!
16%!
Six!
Five!
Four!
Three!
Two!
One!
# of Levers in Comp Plan
Response %!
6. ©2015 Gainsight. All Rights Reserved.
24% 25% 20% 17% 15%
Adoption Customer Sat Training
Renewals Up-Sell / X-Sell
36% 18%
Adoption Customer Sat Renewals
Key Consideration: The Maturity of Your Organization
CSM Responsibility For a
<$25M ARR Organization
CSM Responsibility For a
>$500M ARR Organization
• Where is the team currently
focusing?
• Where do I need them to
focus?
• Is my current CSM profile a
Jack-of-all-trades?
• Can I monitor & measure
performance?
7. ©2015 Gainsight. All Rights Reserved.
A Product Focused CSM Compensation Model
• Define Customer Tiers
• Customer Touch Frequency
• Customer Touch Type
Territory Coverage!
1
KPIs!
2
• Adoption Metrics
• Average NPS
• Average Customer Health
Comp Lever! Comp %!
On-site QBRs #! 25%!
Monthly Health Checks #! 25%!
Maintain Avg NPS Score #! 30%!
QBR Template Update MBO! 20%!
Total! 100%!Process Optimization!
3
• Refine Hand-off Process
• Update QBR Template
Example(s)
8. ©2015 Gainsight. All Rights Reserved.
Key Consideration: Your CSM Model
Product
Focused
Revenue
Focused
Hybrid
• Training
• Adoption
• Value
• Renewals
• Up-Sell
• X-Sell
9. ©2015 Gainsight. All Rights Reserved.
Rules of Thumb for a Product Focused CSM Plan
• Keep it simple
• Include only three measures
• Maintain some flexibility for judgment calls
• Optimize over the year
10. ©2015 Gainsight. All Rights Reserved.
Child-like Joy
©2015 Gainsight. All Rights Reserved.
How Gainsight Thinks
About CSM Motivation and Morale
Allison Pickens
VP Customer Success & Business
Operations
11. ©2015 Gainsight. All Rights Reserved.
Compensation is only one piece of the puzzle
How do you keep the team motivated?
What metric can CSMs own?
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Goal: Metric to publish on a weekly basis
• Objectively valuable: No one can contest the achievement.
• A discrete unit: It’s clear when the achievement is complete.
• Measurable: We can create a Gainsight dashboard to track our
achievements.
• Frequently achieved: We can recognize our achievements week-
to-week.
• Attributable to the CSM: No one can contest that the CSM is
primarily responsible.
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Net New Green Customers
Customers that move from Red/Yellow to Green/Lime in our Habits
Scorecard Measure
• Green: At least x% of licensed users are daily active users of
Cockpit
• Lime: At least y% of licensed users are daily active users (of any
part of the product)
• Yellow: Some usage, but not daily actives
• Red: No usage of Gainsight in the last week
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Benefits of weekly habit targets
• Accountability
• Insight
• Ownership
• Prioritization
• Significance
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Child-like Joy
©2015 Gainsight. All Rights Reserved.
How Blackbaud thinks about
CSM compensation
20. ©2015 Gainsight. All Rights Reserved.
Blackbaud Confidential 20
NAME: Melissa Lipscomb FROM: Blackbaud
WHAT WE DO: Software Solutions for Nonprofits
MY BACKGROUND: 10 years in Software Customer Success
MY TEAM:
• SaaS Products
• High touch model
• Average 75 accounts per CSM
• Focused on adoption & success
• Sales handles renewals & upsells
21. ©2015 Gainsight. All Rights Reserved.
Key Metrics
• Retention
• Transaction Fees
• Customer Health
• NPS
Compensation Plan
• Base+Bonus (paid quarterly)
Bonus Criteria
• Net Retention (75%)
• Transaction Revenue (25%)
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Child-like Joy
©2015 Gainsight. All Rights Reserved.
How Influitive thinks about
CSM compensation
23. ©2015 Gainsight. All Rights Reserved.
Influitive: Quick Overview
Company Overview
• Toronto based tech start-up
• Advocate marketing software (new category)
• 250+ customers
CSM Overview (called Advocacy Coaches)
• Team of 6 people
• Primarily responsible for adoption and renewals while Sales
responsible for upsell/cross-sell
Compensation
• Base + quarterly bonus
24. ©2015 Gainsight. All Rights Reserved.
Influitive: Bonus Philosophy
Bonus Requirements:
• Encourage the team to renew customers – it’s their own metric
• There is pain for the team when we lose customers but can make
that up partially via cross-sell and upsell so we want to encourage
the team to look for those opportunities
• Go beyond trailing indicators and focus on adoption (leading
indicators)
• Don’t just bonus based on a customer satisfaction metric but on a
real customer advocacy score
• Keep it simple
25. ©2015 Gainsight. All Rights Reserved.
Influitive: Bonus Breakdown
Three components:
• Net MRR Churn
• Adoption: X Percentage of customers over the “magic number”
• Advocacy: X Percentage of customers have performed 1 major act
of advocacy or 4 minor acts of advocacy
Bonus Percentage breakdown:
• 65%: Net MRR Churn
• 20%: Advocacy
• 15%: Adoption
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Child-like Joy
©2015 Gainsight. All Rights Reserved.
How Prosper Healthcare
Lending thinks about CSM
compensation
27. ©2015 Gainsight. All Rights Reserved.
PHL: Quick Overview
Company Overview
• Based in Salt Lake City, Utah
• Division of Prosper Marketplace, based in San Francisco
• Patient financing platform for surgeons, fertility clinics and dentists
• Jan. ‘15 switch from subscription to usage-based revenue model
• 2500+ customers (adding 300 / month)
CSM Overview
• Team of 20, organized by industry vertical and customer tier (Q4)
• Responsible for product adoption, usage and expansion
Compensation
• Base + quarterly bonus (MBO)
• 65% / 35%
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PHL: Bonus Philosophy
Strategy
Individual performance with team collaboration
1. Grow usage penetration
2. Grow the product usage base
3. Team usage
4. Individual development, milestone, or project
Bonus Percentage breakdown:
28% ($1,000): Usage penetration
28% ($1,000): Expand active user base
28% ($1,000): Grow funded loans (revenue)
15% ($500): Individual development, project, milestone
29. ©2015 Gainsight. All Rights Reserved.
PHL: Key Learnings
• Simplify
• We thought this just meant fewer metrics
• Eliminate confusion with ratios and go to raw numbers if needed
• The CSM persona values team collaboration
• Competitions to drive lead measures
• Iterate and revisit assumptions
30. ©2015 Gainsight. All Rights Reserved.
Q&A
©2015 Gainsight. All Rights Reserved.
Allison Pickens
apickens@gainsight.com
@PIckensAllison
Scott Golden
Sgolden@gainsight.com
@Sctgldn