The scope of a CSM's responsibility depends on the opportunity to create mutual value, which is determined by the complexity of the solution and the size of the customer. For simpler solutions, one CSM can remotely serve up to 50 customers. For key accounts with complex needs, on the other hand, there may be a dedicated CSM who works mostly on site. This person acts as the customer's coach, bringing in technical experts, trainers, and others as needed.
What does a customer success manager do?
Core responsibilities:
- Strategic consulting
- Functional support
- Technical support
Not every CSM is expected to provide technical support. That depends on the product and management. If your product is ERP, a DW or BI system, and so on, you will most likely take on this responsibility. But that work is so demanding that people naturally focus only on the technical and functional side. They neglect strategy, even though it is the most important part of the role. That is where you find the ROI that makes the customer want to renew the contract.
Additional responsibilities:
Upsell and cross-sell support: generating interest among existing customers in other products and services, and passing this information to the sales team so it can plan a formal conversation. Again, if the boundaries blur, the CSM may be expected to do much of the sales team's work.
Operations support: all administrative duties, such as tracking customer interactions and engagement across the company, logging health scores, risks, and relationship issues, tracking customers' product maturity, recording account intelligence, and so on.
Customer success manager performance metrics
A CSM has to navigate the competing interests of the vendor and the customer in three areas.
Mission: customer success or company success? The CSM job title reflects a shift in the sales mindset. Instead of "win the customer," the focus has moved to "show the customer the path to value." That is not always easy, especially in companies with a hard-driving, results-oriented sales culture. Unless leaders act deliberately to change attitudes and behavior, customers will see CSMs as accomplices in hitting the company's quarterly sales targets rather than as true trusted advisors. The right mission and culture must be built into the CSM hiring profile, success metrics, and incentive plan.
Profile: salesperson or consultant? The success profile of a CSM is closer to that of a consultant than a salesperson. Like consultants, CSMs need to apply their knowledge of the company's offerings and the customer's business, as well as their skills in structured, creative problem solving. CSMs are often hired for specific experience in an industry or customer context.
Metrics and incentives: customer satisfaction or company revenue? Bonus or salary? Too much emphasis on short-term performance metrics and revenue-based incentives can shift a CSM's attention to hitting the company's sales targets at the expense of customer success, which damages the business relationship and reduces the CSM's influence. At the same time, without some accountability for revenue, CSMs may spend too much time on urgent support needs for friendly customers and ignore growth opportunities. CSM performance metrics can include customer usage (for example, retention, renewals, consumption) and satisfaction (for example, Net Promoter Score and other customer feedback). Measuring results over longer periods (for example, annually rather than quarterly) and a lower variable pay component are also a better fit for the CSM role.
80% of companies put their CSMs on a sales incentive plan, with an average base-to-variable pay ratio of 75/25. The same companies use an average pay mix of 55/45 for traditional sales roles (for example, business development manager).
Building customer trust
To get the full value from vendors and their CSMs, buyers need to contribute too. Buyers may be reluctant to share problems and future strategies with CSMs, partly because of confidentiality concerns. Yet this transparency is critical for a CSM to have an impact. As CSMs earn trust, customers invite them into more internal conversations. This gives them the insight to recommend a path to value, whether or not that path includes additional revenue.
Unlocking the power of the CSM is a delicate balance. Some companies get it right, but many do not. By aligning company culture and CSM success profiles, incentives, and metrics with the goal of customer success, companies make sure buyers trust their CSMs. This lets CSMs unlock more value for their customers, creating a virtuous circle of mutual success.
Why choose a career in customer success
- High demand: companies with subscription and long-term contracts keep hiring for the role.
- Competitive pay: compensation reflects the role's direct impact on retention and revenue.
- Career growth: the role offers significant advancement opportunities, and many CSMs move into leadership positions.
Step-by-step guide to becoming a customer success manager
Step 1: Get a relevant education
While it is 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 customer success managers include:
- Communication
- Problem solving
- Data analysis
- Project management
- Strategic thinking
- Product knowledge
- Relationship building
Sharpen your interpersonal skills and your ability to understand customer needs.
Step 3: Gain relevant experience
Start building experience in customer-facing roles such as:
- Customer support representative
- Account 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 CSM responsibilities
As a CSM, you will:
- Onboard new customers
- Build and maintain customer relationships
- Identify upsell and cross-sell opportunities
- Monitor customer health and satisfaction
- Analyze customer data and share insights
- Work with sales, product, and support teams
CSMs focus on customers' long-term success, not just on solving short-term issues.
Step 5: Learn the key tools and technologies
Get familiar with:
- Customer relationship management (CRM) software (for example, SimpleOne B2B CRM)
- Customer success platforms (for example, Gainsight, Totango)
- Data analysis tools
- Project management software
Many of these tools offer free trials or certifications. Use them to build your skills.
Step 6: Network and stay up to date
- Join professional organizations such as the Customer Success Association
- Attend industry conferences and webinars
- Follow thought leaders on social media
- Read industry blogs and publications
Start building your personal brand by sharing insights on platforms such as LinkedIn.
Step 7: Apply for CSM roles
When you are ready:
- Tailor your resume to highlight relevant skills and experience
- Write a compelling cover letter that shows your passion for customer success
- Prepare for interviews by practicing common CSM interview questions
- Be ready to discuss your approach to customer relationship management and problem solving
Entry-level CSM roles can be a great starting point.
Look for titles such as "Associate CSM" or "Junior CSM."