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January 28, 2020
The Evolution of Customer Success Managers and Their Impact on Revenue
By: Fred Penteado
We have launched and transformed several Customer Success teams. Typically, for new teams, the focus should be on onboarding, value messaging, and renewals. To effectively execute on this, we develop the talent profiles, build playbooks for the team, and design compensation plans. But many Customer Success leaders stop there, even in their long-term views. When we show a roadmap to where a Customer Success team handles the expansion sale, we consistently hear “my team can’t sell, because then we will not be trusted advisors.” For Customer Success leaders to be credible with the commercial leadership team, this hesitation is something they must overcome. Customer Success professionals can be trusted advisors and contribute to revenue.
Let’s examine the “Trusted Advisor” definition, by David Maister. The three components are Credibility, Reliability, and Intimacy. Customer Success professionals are uniquely positioned, relative to traditional account managers.
Credibility – Customer Success professionals have industry experience, and many times have done their client’s jobs.
Reliability – Customer Success professionals have many regular interactions with clients, which provide opportunities to show clients that they can be counted on.
Intimacy – As Customer Success professionals get to know, and in some cases, help design client workflows, they are uniquely positioned to understand the client, and therefore create better solutions.
The key difference for Customer Success professionals is that the above are divided by the individual’s self-interest. To put it quite simply, intent matters, and this is why Customer Success professionals are trusted advisors. Customer Success professionals have demonstrated that their primary objectives are delivering on the client’s outcome and providing an excellent customer experience. Ultimately, this is the most significant factor in making Customer Success professionals Trusted Advisors.
When we think of our buying behavior as consumers, which leads to B2B behavior, we want to buy from Trusted Advisors. In relationships with certain professionals, while they make money by selling you things, you trust that their primary interest is making sure you achieve your goals and that you have an effortless buying experience. You choosing to buy from them is a natural conclusion, and you don’t feel like you are being “sold.” Insurance agents, investment advisors, attorneys, surgeons, and other professionals understand this dynamic. They also know that any failures in putting the client’s interest first are the fastest way to end their career.
Ultimately, Customer Success Leaders should own a revenue number. This does not necessarily mean that all Customer Success professionals have a “selling” component in their job description (or compensation plan). Customer Success leaders use Purchase Intent Modeling to determine the right coverage model for the account base. A well-executed ROAD model allocates time and resources appropriately, including those CSMs who are best equipped to handle expansion opportunities.
You can see suggested compensation plans for Customer Success Professionals here. As your Customer Success team scales, there will be individuals who carry a revenue number, and this is good for all parties involved. For your buyers, this will result in a higher chance of achieving their goals and a better customer experience. For the Customer Success professionals, this leads to additional opportunities. Lastly, B2B companies will see increased revenue growth.
Prior to joining SBI, Fred held a variety of leadership positions with multinational Fortune 50 companies. He has worked in product/program/channel management, sales operations, and served as a Chief of Staff.
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