Identify, monitor, and execute timely account expansions with real-time reports and indicators.
Proactively identify at-risk customers and prevent churn using automation, early warning insights, and more!
Understand your customers interactions with your product and make informed product success decisions.
Define and track onboarding by phase, user progress, account, and portfolios.
Intelligence-driven, scalable insights for onboarding, adoption, retention, and revenue growth.
Handle this critical component of the post sales customer journey.
We aren’t just any Customer Success platform. We have the insights, imagination, and technology that others don’t.
Get a complete view of your customer and all their moving parts.
Deliver consistent customer experiences and repeatable success.
Create the right scoring system for your organization.
Create alert rules that are flexible.
Manage, analyze, and optimize your customer interactions.
Track your tasks easily by account, product, and outcome categories for better efficiency.
Create dynamic segment across accounts and users.
Drive adoption, upsell and cross-sell using extensive product data.
Automate your actions, alerts, playbooks and more.
Proactively uncover key insights and receive data-driven recommendations for your team.
Transcribe your calls and catch key phrases used by customers to trigger actions.
Improve decision making and actions for enhanced outcomes.
Unlock value from your data with our embedded Business Intelligence solution.
Meet the industry’s first virtual assistant (SIA) designed for customer success and account management.
Our core values, team, and community
Get in touch anytime.
Don’t miss an episode of the Customer Success Intelligence Podcast
Our annual survey captures the current state of CS Intelligence and automation.
Resources for new and seasoned Customer Success teams.
Features and SDKs you can integrate into your apps.
Calculate the potential ROI you could achieve with SmartKarrot CS.
Customer success is a business activity that touches every part of a SaaS provider’s operations. A customer success manager (CSM) ensures customer satisfaction, encourages optimal use of a SaaS product, optimizes product adoption rate, and helps customers identify goals and track value derived
Customer success is a business activity that touches every part of a SaaS provider’s operations. A customer success manager (CSM) ensures customer satisfaction, encourages optimal use of a SaaS product, optimizes product adoption rate, and helps customers identify goals and track value derived from product use.
Through these and other efforts, CSMs help a SaaS company retain and expand customer revenue. Because of the close connection between CSM efforts and revenue, the compensation structure for the position is crucial. Here in the blog, we will be covering the following:
While there are many ways to compensate any employee, CSM compensation usually falls into three main categories: base salary, base salary plus bonus, and base with a variable compensation component other than a bonus. Each compensation method provides a company with the ability to reward employees for performance.
It’s possible to pay a CSM a base salary alone, and some SaaS companies use this method, especially if their goals are to provide a consistent income level to their CSMs. In this method, CSMs do their jobs with no immediate reflection of their performance. However, raises can be tied to performance metrics during annual reviews or other milestones. While this is a simple system, it has several drawbacks, including:
To provide incentives for achieving positive results, companies often use a combination of base salary plus a bonus for CSM compensation. This system mirrors a sales employee compensation structure.
However, CSMs usually earn a higher base salary, reflecting their operational and administrative duties. While the figures can vary widely, the common compensation base to bonus ratios for CSMs is at 70/30.
In this compensation model, bonuses are paid per newly closed deal, with the understanding that ongoing revenue will be tied to onboarding, lowering churn rates, ensuring product adoption, and other customer success initiatives.
Bonuses encourage CSMs to be effective at their jobs. Still, they can ultimately provide less-than-fair compensation as the amounts are often tied to revenue at the beginning of a customer lifecycle, instead of encompassing the entire journey.
While CSMs play an essential role in sales, their primary function is to ensure ongoing customer success. A fairer compensation structure for the CSM role is one that rewards an employee for reaching customer success goals. Further, a bonus based on new accounts captures an incomplete picture of the value that a CSM brings to a company.
A SaaS company can base the variable compensation component on KPIs related to customer success. By doing so, companies can engage in management by objective instead of a relatively arbitrary system — from the perspective of a CSM.
This system rewards a CSM for their role in a SaaS company’s success, as greater customer success leads to lower churn and more revenue through expanded product use or new customer referrals from successful users.
Which KPIs should direct bonus amounts? A company can look at several indicators, including churn rate, adoption rate, use, and even such factors as net promoter score.
However, while these metrics help determine the effectiveness of overall customer success management activities, they do not directly relate to the revenue-focused goals of retaining and expanding customer revenue.
Focusing on core revenue retention and growth can provide a fairer and more accurate basis for determining CSM compensation. Moreover, with this method, a percentage of renewed revenue can be earmarked for payout to the CSM.
For example, if a target earning for a particular CSM is $100,000, and a 70/30 split is used, the $30,000 of annual salary would be earned if a target revenue renewal rate is met. If a 5 percent revenue loss was acceptable, then renewing 95% of revenue would receive the full $30,000.
Should the revenue renewal improve, the customer success manager would earn a higher bonus, which in turn further incentivizes going beyond set goals?
Central to this fairer system that truly rewards performance is the use of KPIs. To tap into this data, SaaS companies need a view into their customer success initiatives. Further, SmartKarrot’s intuitive dashboards that provide actionable insights into the customer journey, and accurately reflect customer success.
With SmartKarrot, SaaS providers can quickly determine a customer success manager effectiveness, and fuel compensation determinations with this information.
SmartKarrot enables companies to operationalize customer success and, as a result, track the performance of CSMs and build compensation structures that incentivize customer success.
Be it any job that you wish to switch on to, believe me, salary negotiation is something you need to be absolutely affirmative about. If your current CTC is let’s say, ‘X’, ask for a decent amount of raise, like 10-15%. You can always negotiate this before accepting it.
Second would be bulletproof research. No matter what is the interview, you must do your part of the research before you head in. Take help from websites like LinkedIn, Indeed, or Glassdoor and in no time you will get a fair enough idea on what to expect, how much to negotiate and how low or high is the given salary away from the ones in the existing standard.
Wrapping up, a CSM plays a key role in the company and his primary responsibility is to manage relationships with customers and look after the sales. Also, in today’s article, we have talked about the account manager’s salary. 22
This is something between $60,000 to $150,000 depending on skills, experience, and the type of industry you are working in. We have also answered some of the most important questions related to it.
Rohan has over 11 years of experience in client services, marketing and hospitality field. Previously, he was head of digital marketing for a hi-tech mobile application. Rohan is driven by new challenges and the possibility of making an impact on individuals and businesses.
Published February 21, 2020, Updated November 09, 2021
Customer renewals made easy: Follow our Renewals playbook to foster tr...
28 Sep, 2023
Explore the exciting world of Playbooks for Up-selling and Cross-selli...
22 Sep, 2023
Discover effective ways for Customer Success leaders to empower their ...
02 Aug, 2023
Sign up for SmartKarrot’s newsletter.
See how SmartKarrot can help you deliverwinning customer outcomes at scale.