customer success industry

From the first contact through onboarding, adoption and expansion, there needs to be a coordinated effort between all departments. This report not only breaks down what Customer Success Teams are trying to achieve and obstacles they face, but what resources they are employing to better integrate CS into their organizations and be more customer focused. The focus of organizations has shifted from business outcomes to customer outcomes. There was also a jump in collaboration efforts with service and support teams with 56% of respondents saying they spend more than 50% of their time working with these teams. Theres no denying the impact that the COVID-19 pandemic had on the Customer Success industry. Digital CS is here to stay, and thats a good thing. As CS becomes more infused into organizations, increasing collaboration between CS and Marketing, Sales, and other teams will be necessary as these teams will be required to access and act on the customer data in the same way that the CS team is doing using digital technologies. A reactive approach to customers (75%) and visibility into customer adoption and health (74%) were also rated as major-to-moderate challenges for CS teams. According to survey participants, the amount of time CS teams spend collaborating with Marketing has increased significantly this year with 43% of respondents stating they spend more than 50% of their time working with marketing, which is up 33% over last year. You can streamline escalation management by combining digital monitoring and automated support workflows with digital support tools such as knowledge bases which give customers the answers they need to frequently asked questions. These as-a-service companies, particularly SaaS, are in a strong position. And well look at how Totangos AI bot Zoe uses artificial intelligence to facilitate customer success management, pointing toward the future of CS. Get answers to the questions on both you and your colleagues mind. Its a challenge to change the nature of the products and services delivered and take a much longer-term view, but the rewards are a much "stickier" relationship and a revenue pipeline extending for multiples longer than a one-and-done approach. By utilizing data-driven CS technologies, teams are able to gain a holistic view of each customer account, provide hyper-personalized interactions, automate repetitive tasks, and efficiently scale their businesses without having to scale their teams. However, over the past 12 months and especially with the COVID-19 pandemic, that growth has been even more significant. Companies are starting to realize that Customer Success is a growth driver. 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The digital-first approach to customer success can be applied throughout every stage of the customer journey, from onboarding through adoption to renewal, expansion, and advocacy. Is It Better To Lease Or Buy A Car In Summer 2022? This report provides valuable insights into trends in the CS profession; industry benchmarks for CS compensation, growth and maturity; and guidelines for how to adapt to a digital experience in an increasingly virtual world. Its a necessity. Seven Steps to Automated Customer Success Management, Click to download Totango's editable Customer Journey Map template, Conclusion: Embrace Digital-first Customer Success to Propel Your Own Success, Customer Success Metrics to Track & Improve, The 6 Key Areas of Customer Success Metrics, Defining Goals, KPIs & Your Measurement System, How to Build & Manage a Customer Success Team, The Importance of a Well-Structured Customer Success Team. Another CSM introduced himself and followed the playbook of seeking problems to help us solve. Do I qualify? 75% of respondents stated that each CSM in their organizations handled between 16-200 accounts, which is up from 27% in 2020. Although Customer Success is now firmly a company-wide strategy, organizations are still often handicapped with multiple tools and disconnected data that resulted in inefficient workflows, broken communications and departmental silos. To achieve this end, its critical to ensure customer success teams are collaborating closely with sales and product teams to create these personalized customer solutions. At one time, customer success technology revolved around using the phone, supplemented by email. This demonstrates the increasing trend of companies veering more toward the circular flywheel methodology. The median salary for a Vice President of Customer Success in 2021 is $200,000. In the customer success mindset, not only do sales and support teams put themselves in the shoes of the customer now and for five or 10 years on, but they must also consider the customers customer. CRS is an extension of CRM tools and existing processes. We also expect that bonus structures will continue to be more tied to customer value, through factors like account health and customer advocacy. The pandemic created a new sense of urgency around protecting and nurturing customers by highlighting the fact that customers truly are the core of every business. Companies are realizing the importance of customer outcomes over traditional business outcomes and are understanding that this shift requires the best talent available. These are consistent with the top three goals for 2019 and 2020, however, this year we also noticed an increased focus on expansion (82%) and customer advocacy (82%). Using digital tools, companies can scale their businesses without scaling their teams by employing technology to automate stages of the customer journey. The evolution of CS platforms is enabling this holistic view of the business, making it easy to integrate data-driven tools and empower all employees to work with more agility, increasing operational efficiency and delivering amazing customer experiences. We were approached by a competitor who was able to convince us to switch. Revenue can be tracked for each team as well as for the company as a whole. Technology adoption still needs to mature to enable a customer success mindset, although the digital transformation is imminent. In recent years, organizations have been trending away from trying to simply gain as many customers as possible and focusing more on how to retain and expand revenue from each individual customer. This maximizes the likelihood that clients renew their spend with the business and share their positive experiences with their friends, family and colleagues. This year, 75% of respondents stated that each CSM in their organizations handled between 16-200 accounts, which is up from 27% in 2020. The emerging state of the art technology uses a digital-first customer success management model, where tools such as knowledge bases, chatbots and auto-triggered workflows and emails leverage the power of automation to systematically steer customers toward successful outcomes. Try it free to experience the cutting edge in automated customer success. The Customer Success industry has grown and matured rapidly over the past few years, but due to the impacts of COVID-19, shelter-in-place orders and the increase in remote workers in 2020, the industrys momentum accelerated exponentially. For example, when a customer reaches out for help with a common issue, they might receive an automated email recommending a video tutorial with the solution, along with an invitation to contact a support agent if they need additional help. These tools can be applied across every customer engagement model and tier, so team members are freed from handling repetitive work and can focus on handling tasks that are better suited to a human touch or engagement while managing more accounts. Technology can also help you manage your customer success teams more efficiently in order to deliver your customers better CS support. The expansion of these collaboration efforts further demonstrates the increasing understanding that CS is more than just one team or department, but it is an enterprise-wide strategy that is critical to revenue and customer growth. Customer Success is continuing to grow and mature. The Aberdeen study also found that 50% of companies use at least 10 channels to interact with their clients and they use multiple systems to capture data across those channels. We can see this shift in the reporting structure of CS teams. According to this years survey respondents, 76% of Customer Success teams consist of more than 10 members, which is up 27% from 2020. This growth cycle can drive increased expansion within the customer base as well as new logo customers as advocates who promote their successes through customer testimonials, referrals and other channels that help drive awareness and new business growth. For example, if a new customer has not completed their profile within a week, this might trigger an automatic email reminder with instructions on how to complete the process. This makes it easy for team members to quickly retrieve customer data and knowledge base information needed to provide solutions. But life goes on, and this person left. Where CS was once a matter of dedicated success managers fielding phone calls, now the cutting edge of CS involves AI platforms delivering automated support at scale supplemented by human help as needed. Doing that will entail changes, and one of the most interesting ways SaaS firms must do this revolves around their approach to customer success. Americans made up more than half of the survey respondents with 79%, followed by Europe with 8%. Data can be segmented so that each team sees the information relevant to the teams goals. Success starts with existing best practices and CRM and extends with scoping, planning and tracking a customer's journey to success. Totangos Onboard New Customer SuccessBLOC module lets you set onboarding goals for new customers, monitor customer progress through KPIs and trigger automated or manual workflows called SuccessPlays based on what customer data indicates. More than 1,500 Customer Success professionals from around the world participated in the 2021 State of the Customer Success Industry and Salary Survey. And since factors like renewals, expansion and account health were listed as top components affecting respondents bonus structures, visibility and proactivity can also play a role in a CSMs overall salary. They pivoted so their customers still received great service. 44% (up from 10% in 2020) of respondents said that their CS team spends more than 50% of their time working with Marketing and 47% (up from 27% in 2020) reported spending more than 50% of their time working with Sales. This became even more important when COVID hit, as many companies did not know when or if they would be able to secure new customers, so they had to focus on generating advocacy and revenue from their current customers. Organizations are often forced to use rigid, function-specific software and disconnected tools that prevent them from operating productively and effortlessly, and delivering a consistent, holistic customer experience. Businesses are embracing the idea that CS is a company-wide effort to ensure customers attain value from their products and services, so that those customers will continue to renew their subscriptions, expand their product adoption, and become advocates for the brand. And in order to attract and maintain these top-tier professionals, it is becoming even more important for organizations to focus on employee satisfaction. One of Zoes many features is an AI-powered chatbot that allows customer success team members to ask questions in natural language and receive answers from the teams knowledge base. How is a Customer Success Team Structured? CS professionals are shifting their focus from minimizing churn to fueling the flywheel, driving growth from expansion and customer advocacy. Customer success teams help customers reach their goals via their product or solution and close support. The increasing maturity of the industry also shows that organizations are starting to better understand exactly what Customer Success is and the value it offers as a key function for business success. We talked with Customer Success professionals before and during the pandemic to understand what has happened over the past year, and especially the last few months, to provide you with a view into where our industry is going and what opportunities exist for CS professionals. Zoe integrates with Totangos Spark customer success management platform, which combines your customer data with key performance indicators, dashboards and automatic workflows called SuccessPlays to optimize your customer experience at each stage of the customer journey. He was our proactive advocate, seeking problems to help us solve. Totango 2022 |Terms of Use |Privacy |Cookies |Sub-Processors, oin us for Customer Success Summit: Teams in Miami Beach on September 14-16. A greater emphasis on the importance of providing value to the customer was also reflected by the weight of factors like feature adoption (66%) and account health (65%). CS managers can organize teams into groups aligned with company organizational structure and set success goals for CS teams just as you would for customers. Digital technology has transformed the way customer success is delivered and the number of clients who can be supported. There is also a new level of maturity as businesses are recognizing and expanding upon the value provided by these CS roles. This year, we also included a choice for stock or equity options and 37% of respondents stated that they received these as part of their overall compensation structure. With the right best practices and automated systems in place, a single agent can field thousands of clients efficiently, just like Zoom did. Additionally, there was a 32% increase in respondents who stated revenue impact such as account expansions and upsells (89%) were a key component of their bonus compensation. As a result, the salary range is between $70K-280K. We are lucky to have had such levels of internet connectivity, mobile devices and business-ready collaboration tools in 2020. Although bonuses for Customer Success professionals still emphasized overall team and company performance, this year we saw 20-40% increase in responses that indicated their bonuses were starting to include areas that focused on outcome delivery for the customer such NPS (77%), feature adoption (66%), and account health (66%). The COVID-19 pandemic and remote work mandates highlighted the need for, and value of, a digital-first Customer Success approach. When we first started this survey eight years ago, this role was little more than a small function of an organization, but now, it has infused itself into all aspects of business and its not slowing down any time soon. This type of automation handles standard processes efficiently, saving high-touch customer success managers from having to attend to large volumes of routine requests and freeing up their time to assist customers who truly need manual attention. It's vital that progress can be measured and that it is not subjective. However, CRM is focused solely on customers and is not just a software category. Exceeding this limit tended to overwhelm CS teams and dilute support quality. Here are some examples of how automation is fueling digital-first customer success. According to survey respondents, the median salary for the Head of Customer Success is $130,000. Imagine if the pandemic had struck 10 years ago. As customers receive value from a companys products and services, they add more users and use cases which in turn adds more value to the customer. Here is a quick taste of what you will find in this year's report: Over the past year, while most of us have been working remotely and adjusting to life in the midst of a global pandemic, Customer Success has been quietly surging right under our noses. As the role of CS within organizations grows and becomes more defined, companies are seeking to hire high-quality CS professionals. But there was no follow-up, and after some time, the CSM changed again but without follow-up or resolution improvement. The amount of turnover reported this year was slightly higher than in previous years with 40% of respondents reporting between 11-25% turnover. The Totango Increase Customer Adoption SuccessBLOC includes out-of-the-box KPIs, dashboards and workflows to help you monitor customer behavior and assist customers with unlocking the full value of your product. The COVID-19 pandemic shined a bright light on the importance of growing and protecting customers. We saw the greatest increase in our respondents of teams setting in place in the last 1-2 years emphasizing again the tremendous growth in organizations prioritizing customer success and building and growing their newly formed customer success teams. Achieving Organizational Alignment for Your Customer Success Team, Best Practices for Enabling Customer Success to Scale, Traits to Look for in a Customer Success Manager, Scalable Coverage Models: A Digital Approach to High Volume Customers, Setting Up A Customer Success Tech Stack Right, How to Pick A Customer Success Platform (Scorecard Included), 6 Essentials When Selecting Tools for a Customer Success Tech Stack, Why Business Intaelligence is Not Enought for CS Teams, Customer Success Industry Trends & Reports, 2019 State of The Customer Success Industry Trends & Report, 2020 State of The Customer Success Industry Trends & Report, 2021 State of The Customer Success Industry Trends & Report, Artificial Intelligence and Machine Learning in Customer Success. Half of all respondents stated that their CS team had been in operation for 3 or more years, while the number of respondents who said their organizations had a CS team for a year or less dropped significantly this year to just 9% vs 15% in 2020. This flywheel concept and the enhanced focus on customer advocacy and expansion are also reflected in the growth of collaboration efforts between CS and other teams throughout organizations. Zoe interfaces with other collaboration tools teams are already using, such as Slack. CS teams are being tasked with owning more revenue-generating activities that make an impact on organizations bottom lines, as well as activities that improve product stickiness - like feature adoption - which decrease churn and increase renewals. In addition, an incredible 91% of respondents stated that their teams had grown in size over the past year, with more than 12% stating they had grown by over 50%. While great strides have been made in both recognition of the industry as well as the more widespread implementation of customer success software and best practices, there is still more room for growth in the customer success space. Last year during the pandemic, we saw many new teams being formed and those same teams are now maturing, with more than 50% of respondents stating their organization has had a CS function for more than 3 years. Then establish KPIs and other deliverables. During the onboarding phase, customer success depends on achieving outcomes such as: The process of achieving these outcomes can be automated by establishing best practices and setting up digital workflows and monitoring tools which implement them when customers reach appropriate milestones in their onboarding journey. Customer Success salaries are continuing to trend upward as the industry matures and businesses are placing more value on the expertise and responsibilities of these CS professionals. We predict an increasing shift in compensation structures with more Customer Success professionals receiving bonuses, stock/equity incentives, or commissions tied to revenue, which will increase average Customer Success salaries across the board. To touch all of our customers and keep them happy, we had to be able to scale, and in order to scale effectively, we had to be able to automate tasks and trust in our data sources. All Rights Reserved, This is a BETA experience. When customers receive value from a companys products and services, they continue to buy more products and advocate for the brand, thus decreasing churn, and increasing renewals and product adoption. It is true that a great many industries and businesses have suffered tremendous hardship during the pandemic to date. The big difference is that the salespeople who implement CRS do not believe the customer journey really ends. Now that CS is being recognized as a critical function for operationalizing success and driving revenue growth, we are seeing more CS teams reporting to the Chief Operating Officer (29%) and the Chief Revenue Officer (16%). The need for teams to scale was likely exacerbated over the past year with the challenges presented by the COVID-19 pandemic, which forced many organizations to have to do more with fewer resources. While we can thank the pandemic for forcing us to make these transitions so quickly, they were transitions that we were likely going to have to make anyway albeit at a more relaxed pace. The range of salaries for this role is between $70K-90K, reflecting the importance of this role to the CS team and the company. Teams with these technology systems in place also reported being able to more proactively engage with their customers than those without this technology. Join us for Customer Success Summit: Teams in Miami Beach on September 14-16, Defining Customer Success Throughout the Customer Journey, Farm, Dont Hunt (the Customer Success Mantra), The Essentials of Digital-first Customer Success Strategies, How Digital-First Customer Success Can Improve Your Customer Success Management Process, Digital-First Customer Success vs.

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