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CSM Role & Demand

In today's business landscape, you may have noticed a surge in the demand for Customer Success Managers (CSMs). But what exactly is this role, and why are companies eagerly hiring CSMs? Is it just a trendy title, or is there a genuine need for this talent? The truth is, the role of CSMs has been around for a while, albeit with less recognition and awareness. However, with the evolution of technology and changing business models, customer success has taken on a new face.

A customer success manager is primarily responsible for exceeding customer expectations from a product/service and ever-increasing customer lifetime value for a company.  By nurturing relationships, genuine interest in clients’ goals, proactive reach outs, and providing exceptional support, CSMs focus on achieving customer satisfaction and loyalty. They possess a deep understanding of their clients' goals and align them with the company's offerings, resulting in long-term success for both parties. They build an ecosystem around the product, employing strategies such as testimonials, case studies, event attendance, market understanding, and client meetings to drive revenue expansion and influence an effective product roadmap.

Moreover, CSMs serve as trusted advisors, leveraging their expertise to identify opportunities for clients to extract maximum value from the product or service. 

 

CSMs act as a bridge between the customer and the company, ensuring that customers' needs are met and exceeded throughout the customer life cycle. Each phase of the customer life cycle has its own list of activities and success metrics required to be achieved.

CSMs contribute to the overall success of the business by understanding clients' businesses and key performance indicators (KPIs), proactively engaging with them, addressing concerns, and continuously identifying opportunities for value addition and revenue growth.

 

The 4 basic metrics/KPIs of CSM Role are:

 

  1. Retention rate/churn

  2. Engagement score

  3. NPS

  4. Expansion

 

Companies often customize the role and KPIs of Customer Success Managers (CSMs) based on various factors such as product line, customer maturity, dollar value, and other client segments. This customization allows them to align the responsibilities of CSMs with specific product needs and customer profiles. 

Should CSMs handle Revenue?

 

One topic of debate within the industry revolves around whether CSMs should solely focus on value addition or also handle renewals. The decision to assign these roles to CSMs depends on the unique requirements of the product and the characteristics of the customer segments. Some companies choose to assign both responsibilities to CSMs, while others assign either one based on the specific needs of their product and customer base.

 

Even in cases where CSMs do not directly handle renewals, they are still held accountable for them. This is because renewals are driven by the value added by the product, and CSMs play a crucial role in delivering that value to customers. By continuously engaging with customers, owning their success plan, addressing their needs, and helping them extract maximum value from the product, CSMs contribute to the overall success and satisfaction of the customers, which in turn influences their decision to renew. Therefore, regardless of the direct involvement in the renewal process, CSMs are regarded as responsible for driving customer renewals through their efforts in value addition. Their actions and guidance contribute to the customer's perception of the product's value, which ultimately influences the decision to continue the relationship with the company.

 

In conclusion, the rise in demand for CSMs is driven by the need to provide exceptional customer experiences and drive revenue growth. With their unique blend of sales acumen, industry knowledge, and customer-centric mindset, CSMs play a vital role in building successful customer relationships and fostering business growth.  Click here to read more about the qualities of a CSM or connect with us to know more.

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