What's the earliest stage a startup should consider hiring a customer success manager?

Whenever there are customers you need to retain (psst... that's pretty early!).

I've found that we in the industry are quite liberal in what we call Customer Success, particularly in early-stage companies. You'd likely start with a CSM as the person who helps onboard/implement the new customers, answers how-to questions for them, and does whatever it takes to make their product dreams come true. The role is broad and a catchall for post-sale needs. Who would do it otherwise? You probably don't want your sales rep taking time away from growing the company, nor do you want every customer question and complaint hitting the founders.

Over time, you'll mature and specialize the CS function as you introduce other specialists in Implementation, Technical Support, etc. and beef up customer resources like in your knowledge base and community.

For that first hire, consider someone who is a product expert, customer-obsessed, and a pro at getting things done cross-functionally. A high-potential hire could go on to lead a team of CSMs as you grow.

Key Indicators You're Ready

• 10-20 paying customers: Enough accounts to justify dedicated attention

• Recurring revenue model: You have ongoing relationships to maintain

• Post-product-market fit: Your offering solves a proven need consistently

• Initial churn concerns: You've experienced or anticipate renewal challenges

• Complex onboarding: Your product requires significant setup/training

• Customer retention is vital: Your unit economics depend on multi-year relationships

Financial Readiness Signals

• $500K-$1M ARR: Typically provides enough revenue foundation

• Expansion opportunity: Customers have natural upsell/cross-sell potential

• Renewal cycle approaching: First wave of customers nearing renewal decisions