You have to look at what the business cares about and then work backwards to how Customer Success fits into those overall targets. For example, if the business has a retention problem, it's probably important to have a Gross Revenue Retention KPI. If, however, the business is more interested in price increases and cross-sell and upsell, then tie CSMs to Net Revenue Retention. At AlertMedia, there was a business-wide push to build out our Advocacy program so we incentivized CSMs to source advocates and add them to our pool. This dramatically increased the number of advocates we have to pull from going forward.

This is one of the most critical components of customer success leadership both when establishing a CS function or joining a team with an already established CS org. If a CS team sits within the sales organization, there may be a natural alignment already anchoring the full team to joint business-based KPIs like churn reduction or retention/renewal outcomes. In this case, it's important to recognize how each team contributes to those shared outcomes - while the KPIs may be shared, the path to achieving the KPIs can (and likely should) differ by team. For example, CS may lean more into product adoption and customer value assurance in service to retention or renewal outcomes, whereas sales is responsible for growing the customer base or growing the renewal. If the sales and CS teams are managed separately within the organizational structure, it becomes even more key to have conversations around how CS incentivization and measurement models serve the broader organizational and business outcome goals. For example, showcasing how boosting customer product adoption through well-timed customer engagements leads to customer value and stronger renewal outcomes. One of the most effective ways to anchor teams on commonly shared KPIs is to be very specific about how the actions (inputs) lead to results (outcomes) - ensuring this narrative is reinforced consistently through the organization. It's also important to be transparent on each team (sales/CS) around how team members are measured if there are differences in accountability structures - this builds trust and confidence that while actions may differ, 'skin in the game' is present for all teams in service to business outcomes.

This answer is entirely dependent on the what field/product the CSM works with, who their target persona is and what resources are available based on company maturity. For someone dealing in cybersecurity, working mostly with CISOs, technical skills are more important. For someone in general CRM, maybe not so much. My feeling is that process experts > product experts. I find the best CSMs have strong business acumen, can step into a customer relationship and understand where there is opportunity to either (1) inject their product into existing process to create efficiency or (2) suggest a new process built around their product that drives better outcomes. That is less about deep technical knowledge and more about an ability to understand what value means to your customers and how your product can deliver that. Assuming that you have resources available to you that allows you or the customer to solve a technical issue when they arise, your true value is driving results vs. troubleshooting.

I love that you’re looking to break into tech as a CSM, here are a few strategies I would recommend: 1. Internal Promotion - Some of the best CSMs I have worked with have moved up internally from other roles in the company. Customer Support and Sales Development are two internal roles that I frequently recruit from. If you’re early in your career, look for entry-level roles in Customer Success-adjacent roles at a company that prioritizes internal mobility. A benefit to both you and your employer is you’ll already have a good understanding of the product. 2. Adjacent Industries - If you have experience elsewhere and are looking to make the switch, I recommend being strategic: Focus on companies where your previous experience would give you a unique advantage in understanding the customer. (eg: if you’re an accountant today, look at companies that make software for accountants). Don’t “spray and pray” - you’re better off focusing on a smaller set of companies that you think will be a great fit. 3. Entry Level CS Roles - I think this will be the hardest path for you, but it’s possible. I frequently receive hundreds or even thousands of applicants for entry level CS positions, so it’s important to stand out from the crowd. Network and attend CS meetups or events (meetup.org is a great resource) where you can. You’ll learn a lot and you’ll also start to meet people in your local CS community who can help you.

The main hard skill that stands out to me for a Customer Success Leader is change management. Because really this hits in 2 different ways in a Customer Success team: 1. You need to coach and guide your team through how to successfully drive change in their customers 2. You will often need to drive change internally. Customer Success is one of the most change-heavy departments as it often evolves as the business and the market does, so being able to get your team on board to an internal change is key. For optional hard skills, I think project management feeds nicely into change management. Often as a CS leader you have a lot of moving pieces and knowing how to organise that and other internal stakeholders is key.

To scale a Customer Success function effectively, it's crucial to demonstrate its financial impact and how additional headcount can amplify this effect. A simple method is to analyze renewal and expansion rates for accounts managed by Customer Success. By applying this financial model, you can determine the potential growth and retention value that an additional CSM could bring when engaging with currently uncovered accounts. This approach provides a clear rationale for expanding the team while showcasing the function's tangible contribution to the organization's bottom line.

Breaking into the Customer Success straight from college is possible but there are things that you should focus on if you would like to go this route. My advice is to focus on developing transferable skills and building a strong foundation of knowledge for any industry or company that you’d like to work for. Even if you don’t have direct experience, emphasize internships, academic projects, or extracurricular activities that demonstrate teamwork, empathy, and a customer-centric mindset. Start working on these soft skills as these are essential in Customer Success: * Communication * Problem-solving * Relationship-building abilities As a bonus, I typically love seeing adaptability and a growth mindset from a candidate, so show you’re eager to learn and willing to embrace challenges. Networking is also crucial. Connect with Customer Success professionals on LinkedIn, attend industry events, and ask for informational interviews to learn more about the field. This will not only deepen your understanding but may open doors to opportunities. Lastly, consider taking courses or earning certifications in areas like Customer Success, project management, or data analysis to stand out as a candidate.

Unlike a lot of Customer Success departments, we’ve chosen to align our team to customer KPIs rather than commercial/upsell targets. As such, we have less overlap in goals between CS and Sales. Of course, we’re both targeting Gross Renewal Rate and ensuring we maintain the customer base, but we don’t extend that to upsell targets in the same way as commission-based CS teams. Currently, we’re focused on exploring how we can share “time spent” efficiency and reach KPIs to help keep us accountable for spending as much face time with our customers, tech, and agency partners as we can over the course of many key city hubs whilst being mindful of the cost of trips.

Here are a few mistakes I see most often: 1. Not doing their research on the company/role they are interviewing for. It is surprising how many interviews I have participated in where the candidate had clearly not reviewed our company's product offering or job description. One of the keys to interviewing is to showcase why you are the best fit for the role. The best way to do this is to fully understand what the company does and what they are looking for, and to articulate how you meet those needs. 2. Not asking enough and/or not asking the right questions. I tell candidates all the time it is just as important that we interview them, as it is they interview me (the hiring manager) and our company. Accepting a role at a huge company is a huge commitment, and as a candidate, you want to make sure you know exactly what the role is, the expectations and what you are walking into. 3. Talking for too long and over-explaining. While I want to make sure a candidate has sufficient time to answer questions, it becomes concerning if they tend to ramble on for a long period and have trouble directly answering the question. When I am interviewing a candidate I am always picturing myself as one of our customers and what the zoom experience would be like for our customer, if we hired this candidate. Our customers are looking for CSMs who can provide clear and concise answers to their questions and candidates must showcase that skill during the interview process.

To gauge autonomy of Customer Success Manager candidates, I like to ask: * Describe what role the CSM plays with the customer, in your experience? This helps me see the candidate's willingness to be strategic or tactical (hopefully both, when necessary!), how they work with internal cross-functional teams, and how they view ownership of commercial responsibilities. * Provide an example of a customer escalation and how you turned it around. In this question, I'm looking for a candidate to both show ownership over the ultimate resolution of the issue and the ability to navigate difficult internal and external situations. The best answers are those that demonstrate collaboration and use of resources without placing blame on others or an over-reliance on executives. * How do you work with the support team for defects or other issues? Success of the customer is a team sport, with CS driving proactive results and support working to resolve problems when they arise. The best CSMs understand that one doesn't work without the other and demonstrate that in the answer to this question. * What are some things you've done to drive success that aren't directly related to your book of business? In other words, I want to learn about the other projects a CSM has done in the past to keep the business moving forward. Some examples I've seen in my own experience are working with marketing to create an industry-related podcast, driving a customer advocacy and review program, and creating shared materials to save time and help the business scale.