A client success manager, also known as customer success manager, customer service manager, or CSM for short, is a person who functions as a communication bridge between a business and its customers.
Customer satisfaction and retention are vital for company success. They are the two most important drivers of growth. The client success managers are directly accountable for both.
Over the years, customer success management has become a relatively recent trend that has witnessed a surge in employment, particularly in SaaS firms, finance organizations, and other digital businesses that rely exclusively on customer relationships.
Client success managers are professionals who understand what consumers want and need. Thus, companies rely on them to drive their customers toward the success of their products.
In conclusion, consider the CSM to be a mentor for your customers. They also work cross-functionally with support teams, sales teams and product teams.
Job Description of a Client Success Manager.
The job description of CSMs is broad, as they do more than manage customer relationships. Below are some of their duties:
- They maximize value to sustain business development and profitability.
- CSMs analyze consumer data to increase customer satisfaction.
- They also manage and develop clients’ portfolios.
- Bridge the gap between sales and customer support
- They improve the onboarding process of a company’s customers.
- CSMs serve as a liaison between clients and the organization.
- Handle and resolve customer requests and complaints.
- They also ensure that clients get quick time-to-value.
- They ensure that clients are constantly engaged and that they regularly use products.
- CSMs maintain a “high-level” overview of the whole support process.
- They also create a customer-focused team atmosphere.
- CSMs create opportunities to introduce premium products and services by encouraging upselling and upselling.
Client Success Manager Salary
According to salary.com, the average annual salary of a customer success manager is customer success manager in the United States is $85,191. Salary range falls between $76,092 and $94,969.
Glassdoor estimated the national average salary for a customer success manager in the United States at $81,414. This salary can range from about $55,000 to about $126,000.
While according to Indeed, the average salary for a customer success manager in the United States is $61,660. Additionally, the salary falls between $55,000 and $85,000.
Payscale noted that the average salary for a customer success manager in the U.S. is $69,699. It estimated that the salary range falls between $48,000 and $110,000.
Most client success managers work on commission in addition to a base salary which affects their salary variation. Other factors that affect salary variation include location, company, and years of experience.
Client Success Manager Metrics of Success
A good customer success manager’s KPIs are scored with the following metrics:
Customer Retention Rate:
Tracking your retention rate reveals how many consumers benefit from your product against those that do not. However, if users try your product once and never return, it suggests that they don’t see the value in it or don’t completely understand it, which means that the CSM isn’t delivering on the job.
Net Renewal Rate:
If your customers return time and time to continue using your product, this is a good indicator of how successful your product is. The Net Renewal Rate indicator tracks customer account renewals. It also checks if they are upgrading and exploring new features in your product. The aim is to have a Net Renewal Rate of more than 100, which means that your rate of expansion and renewal is higher than your rate of churn.
Customer Satisfaction Score (CSAT):
If you’ve ever bought something and given a review, it means you’ve been given a customer satisfaction score (CSAT). CSAT is a quick and easy approach to determining a user’s overall satisfaction or dissatisfaction with your product.
Onboarding and Engagement Rate:
If a user has a bad onboarding experience, they’ll assume the rest of your product is just as bad. They’re also unlikely to stick around for long. A customer success manager can ensure that all clients have the best onboarding experience possible by implementing a sustainable process. They also must ensure that their team engages customers from time to time to maintain good customer relationships.
Expansion revenue is the percentage sum of new revenue generated from existing customers; that is, upselling. A CSMs expansion revenue is an important metric to track because a CSM’s primary responsibility is to enhance expansion and drive upsells.
Customer Effort Score (CES):
CES, otherwise known as customer resolution rate, measures how much effort a customer has to exert to get an issue resolved.
Frequently Asked Questions?
What is the difference between customer success teams and customer support teams?
Customer support teams are often on the front lines, responsible for responding to live chat communications. They also address concerns regarding where to discover specific features, such as price. Customer success teams, on the other hand, tend to be more proactive; they aim to anticipate their customers’ requirements and give resources and solutions ahead of time. Simply put, customer success teams focus on higher-level challenges.
How can I become a customer success manager?
Becoming a customer success manager may involve these steps:
- Customer success managers begin their careers as customer success officers or representatives.
- Transition into a team leadership role overseeing a small group of employees.
- Move into a managerial role and work towards a specialization, such as product development or maximizing profit growth rate.
- You will need between 5 to 10 years of experience in the customer success field before you become a customer success manager.
What are the technical skills I need as a customer success manager?
Project management, Onboarding, Data analysis, Customer service, Product or service support, Budget management and Record keeping are some of the skills you will need to be a successful customer success manager.
What is the difference between a customer success manager and an account manager?
Customer success managers are both salesmen and customer service representatives. However, the distinction between a customer success manager and an account manager is that customer success managers are not concerned with winning the next account or putting out specific fires. While account managers are concerned with winning the next account, including upselling and cross-selling.