how (and when) to hire a great vp of customer success management csm
TRANSCRIPT
Housekeeping
• Q&A panel on your right
• Recording for colleagues who can’t make it
• All attendees will receive slides
• Twitter hashtag #customersuccess
Our Speakers
Nick MehtaCEO
@nrmehta
Tomasz TunguzPartner
@ttunguz
Monica AdractasVP, Customer Success and Retention
On Your Mind?
• Timing• Why do I need to invest in Customer Success this year?
• When should I bring in a leader of Customer Success?
• What do my CEO and board think?
• Hiring• How does Customer Success fit into my organization?
• What does Customer Success own?
• Where do I find a leader with the skills my company needs?
• Preparing• What do I need to know about Customer Success?
• What do I have to keep in mind about transitioning?
• How do I evaluate roles and employers?
Retention Affects The Top Line
Hypothetical SaaS Co
$50k in MRR
50 customers at $1k ARR
each
$1250 in CAC, Sales
Efficiency of 0.8
Growing 15% m/m
CSM Drives Greater Share-of-Revenue
• Customers use more of a
product over time
• CSM teams help customers
adopt and expand
Economics For Your Investment
• Compare CLTV to
your growth trajectory
• Is it less expensive to
retain or replace your
typical customer?
Revenue
Su
cc
es
s M
atu
rity
Adoption
Retention
Expansion
Optimization
Transformation
$1 - $5 MM
$5 - $20 MM
$20 - $100 MM
$100 MM - $1 B
$1 B+
Gainsight CSM Maturity Model
Revenue
Su
cc
es
s M
atu
rity
Manager or
Director of
Customer
Success
VP of
Customer
Success
SVP of
Customer
Success or
CRO
CCO
CCO Reporting
to President or
COO
Who Owns Customer Success?
Revenue
Su
cc
es
s M
atu
rity
CSM
Onboarding
Operations
Support
Renewals?
Customer
Marketing?
Training
Advisory
Pre-sales?
PMO
Managed
Services
Domain
Experts
Architects
Who Falls Into CSM?
Sales-oriented
Support-oriented
Services-oriented
Product-oriented
• Low ACV OR
• High cross-sell / up-sell
• Complex deployment OR
• Naturally sticky
• Low ACV OR
• Non-tech user
• Low ACV OR
• Tech savvy user
What Background Fits?
What Should I Ask My Candidates?
• How do you define Customer Success?
• Whom do you admire in Customer Success?
• How should I measure you in this job?
• How will you track your team’s performance?
• What do you look for in team members?
• What will you do with the 25th hour of the day?
• Tell me about your toughest customer situation
What Should My Job Description Look Like?
www.gainsight.com/job-description
How Can I Sell?
• Importance to business model
• Customer commitment
• Org-wide customer culture
• Support from product
• Support from sales
• Investment (systems, training, comp)
• Career growth
What I looked for in an opportunity
Company vision, future prospects, and leadership
A customer-back mindset
Ability to have impact (company readiness to invest / change)
Culture
Specifics: role, comp, career trajectory
Recommendations for Future VPs
1 2
3 4
Define the company stage and complexity
that is right for you
Make sure you *love* the people and culture Spend a *ton* of time listening
Find companies with evidence of a cross-
functional, customer-back mindset