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Customer success manager

Updated at: 31 January 2025

When a corporate customer makes an initial purchase from a company, this is only the beginning of the exchange of value between them. The company benefits greatly if the customer continues the relationship and expands the purchase, as the mutual exchange of value increases over time. The more the customer's success is related to the company's product, the more the customer is interested in continuing the collaboration. In the case of complex and evolving technology products, customers need ongoing help to adapt and realize value. Realizing value for the customer is the flywheel that keeps customers coming back. Hence, there should be a position in the company that is responsible for ongoing customer service. And today, that position is the customer success manager or Customer Success Manager (CSM). The CSM can be the force that accelerates the flywheel. This position was unheard of fifteen years ago, but now every other high-tech company has a CSM. Customer Success Manager is the second most promising position in sales, after Corporate Customer Manager.
CSM balances service and sales, between company interests and customer interests, and between product expertise and customer insight. When approached correctly, CSM is a powerful growth engine. But you might argue that such a position already exists in the form of, actually, an account manager or account manager (AM). How do they differ? Here we will try to tell you what a Customer Success Manager does, how a CSM differs from an AM and what skills you need to acquire to work in this promising position. ## Who is a customer success manager The title "customer success manager" is used for a variety of sales roles, both old and new. Some CSMs are renamed customer service managers who handle troubleshooting and logistics. Other CSMs are former account managers focused on renewal and expansion. **Customer Success Manager's tagline:**

#### "Help and ensure that the customer achieves the desired results using our product"

CSM involves customer onboarding, training, relationship building, troubleshooting, etc. In essence, he or she is the point of contact for the customer and helps them in any way possible to get updates, additional sales and minimize churn. At the end of the day, the CSM is responsible for renewing the relationship with the customer - the rest is up to the product, the company and the customer themselves.
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The CSM's scope of responsibility depends on the ability to create mutual value, determined by the complexity of the solution and the size of the customer. For simpler solutions, a single CSM can remotely service up to 50 customers. On the other hand, for key customers with complex needs, there may be a dedicated CSM working primarily on-site. This person acts as a customer success coach, bringing in technical experts, trainers, and others as needed. ## What tasks the customer success manager performs **Key Responsibilities:** - Strategic consulting - Functional support - Technical support Not all CSMs are required to provide technical support. It will depend on the product and management. If your product is [ERP](), [DW ]()or [BI ](), etc., then you'll probably get this responsibility. But it's such a challenging job that people naturally focus only on the technical and functional part. They neglect strategy when that's the most important part of the role. That's where you'll find the ROI to make the client want to renew the contract. **Additional Responsibilities:** **Support incremental and cross-selling** \- stimulate current customers' interest in other products and services and provide this information to the sales team to develop a plan for a formal conversation. Again, if the lines are blurred, the CSM may be expected to do much of the sales team's work. **Operations Support** \- all administrative duties: tracking customer interactions and engagement across the company, recording status metrics, risks and relationship issues, tracking customer maturity with respect to products, recording intelligence, etc. ## Customer Success Manager performance metrics The CSM must maneuver between the competing interests of the product provider and the customer in three categories. **Mission: **customer success or company success? The CSM job title reflects a shift in the mindset of salespeople. Instead of "win the customer," the focus has shifted to "show the customer the path to value." This is not always easy, especially in companies with a rigid, results-oriented sales culture. Unless leaders act intentionally to change attitudes and behaviors, CSMs will be viewed by customers as accomplices to the company's quarterly sales goals rather than true trusted advisors. The right mission and culture must be enshrined in the CSM's hiring profile, success metrics and incentive plan. **Profile:** salesperson or consultant? A CSM's success profile is more like a consulting profile than a sales profile. As consultants, CSMs must use their knowledge of the company's offerings and the client's business, as well as their skills in structured and creative problem solving. CSMs are often hired with specific experience in the industry or client context. **Metrics and incentives:** customer satisfaction or company revenue? Bonus or salary? An overemphasis on short-term performance metrics and revenue-oriented incentives can shift the CSM's focus to meeting company sales goals at the expense of customer success, impairing business relationships and reducing the CSM's impact. At the same time, without some revenue accountability, CSMs may spend too much time addressing immediate support needs for friendly customers, ignoring growth opportunities. CSM performance metrics can include customer utilization (e.g., retention, renewal, consumption) and satisfaction (e.g., [customer loyalty index]() and other customer feedback). Performance metrics over longer periods of time (e.g., annually rather than quarterly) and lower incentive pay are also better suited to the CSM role. 80% of companies [assign ]()their CSMs a sales incentive plan with an average salary to incentive pay ratio of 75/25. The same companies use an average pay ratio of 55/45 for traditional sales roles (e.g., business development manager). ### Building customer trust To get the full value from suppliers and their CSMs, buyers need input. Buyers may be reluctant to share concerns and future strategies with CSMs, in part because they worry about confidentiality. However, this transparency is critical for CSMs to have an impact. As CSMs gain trust, clients invite them to participate in more internal conversations. This gives them the insight to recommend a path to value, whether that path includes additional revenue. Recognizing the power of CSM is a delicate balance. Some companies get it right, but many don't. By aligning corporate culture and CSM success profiles, incentives and metrics with the goal of customer success, companies ensure that customers trust their CSMs. This allows CSMs to unlock more value for their customers, creating a virtuous circle that ensures mutual success. ## Why pursue a career as an account manager 1. There is high demand for this position: more than 75,000 open positions in the U.S. alone on LinkedIn. 2. Competitive salaries: the average salary for a customer success manager in the United States is approximately $125,168 per year, with the potential to earn between $106,190 and $148,102 depending on experience and location. 3. Career advancement: this specialty offers significant opportunities for advancement, with many CSMs moving into management positions. ## A step-by-step guide to becoming an account manager #### Step 1: Get the proper education While not always required, a bachelor's degree, can provide a solid foundation for a CSM career, in fields such as: - Business Administration - Marketing - Psychology #### Step 2: Develop core skills Core skills for account managers include: - Communication - Problem solving - Data analysis - Project management - Strategic thinking - Product Knowledge - Relationship Building Hone your interpersonal skills and ability to understand customer needs. #### Step 3: Gain relevant experience Start building your experience in customer related roles such as: - Customer Service Representative - Customer service manager - Sales Representative - Technical Support Specialist Look for opportunities to work with SaaS companies or in industries with subscription-based models. #### Step 4: Understand the core responsibilities of a CSM As a CSM, you will be expected to: - Attract new customers - Develop and maintain customer relationships - Identify additional and cross-selling opportunities - Monitor customer status and satisfaction - Analyze customer data and provide insights - Collaborate with sales, product and support teams CSMs focus on long-term customer success, not just short-term problem solving. #### Step 5: Learn key tools and technologies Familiarize yourself with: - Customer Relationship Management (CRM) software (e.g., SimpleOne B2B CRM) - Customer Success platforms (e.g., Gainsight, Totango) - Data analytics tools - Project management software Many of these tools offer free trials or certifications. Take advantage of them to enhance your skills #### Step 6: Communicate and stay informed - Join professional organizations such as the Association for Customer Success - Attend industry conferences and webinars - Follow opinion leaders on social media - Read industry blogs and publications Start building your personal brand by sharing ideas on platforms like LinkedIn. #### Step 7: Apply for CSM positions When you're ready: - Craft your resume to highlight relevant skills and experience - Compose a compelling cover letter that demonstrates your passion for customer success - Prepare for interviews by practicing common CSM interview questions - Be prepared to discuss your approach to customer relationship management and problem solving Entry-level CSM positions can be a great starting point. Look for positions like "Associate CSM" or "Junior CSM."
## How to realize that a business needs a CSM It's easy to think that the hard work ends once you've gotten a customer. In reality, the battle for customer loyalty is just beginning. In the dynamic landscape of today's business world, companies are realizing that customer acquisition is just the first step. The true path to sustainable success lies in developing long-term relationships with existing customers. That's why the role of the Customer Success Manager is important. Being a CSM means being part of the most customer-facing function in a company. CSMs often have a deep understanding of customer needs, product and business process. Your business must continue to show the customer the value of your product or service. The account manager plays a crucial role in this process, helping to promote your company and strengthen customer relationships. Today, it's not enough to simply have a profitable offer - instead, it's important to guide your customers to success, or they'll find someone else to do it. Technology is rapidly advancing, but it still can't replace human interaction. Today, businesses and customer relationships are becoming increasingly digital, but it's critical to orchestrate this digital journey in a personalized, human-centric way. And it is customer success specialists who are leading this effort.