2015customersuccesssalaryreport 150709002154 Lva1 App6892

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2015 Customer Success Salary Survey & State of the Profession Report |

presents

Customer SuccessSalary Survey &

State of the Profession Report2015


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TABLE OF CONTENTS

Introduction

Executive SummaryMeet the Survey Participants

Customer Success Salary Survey Results

Compensation Structure

Bonus Components

Commission Components

Annual Compensation Distribution

Annual Compensation Distribution: Year-Over-Year Comparison

Median Annual Compensation: By Job Title

Annual Compensation Distribution: By Job Title

Average Annual Compensation By Job Title: Year-Over-Year Comparison

State of the Customer Success Profession

Where Does Customer Success Reside In Your Company?

Customer Success Maturity

What Was Your Previous Background?

Customer Success Team Growth And Turnover

Top Goals Of Customer Success Teams

Challenges Of Customer Success Teams

Systems Used By Customer Success Teams

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2015 Customer Success Salary Survey & State of the Profession Report | 3

The 2015 edition of the Customer Success Salary

Survey & State of the Profession Report surveyed

748 respondents to understand Customer Success

compensation trends, the growth and maturity of the

role, as well as its goals and challenges.

This years survey saw a 300% increase in the

number of respondents, attesting to the rapid growth

of the profession.

INTRODUCTION


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Trend From Previous YearCompared to last years salary data, compensation is more uniformly

distributed this year indicating hiring across all levels (i.e. companies

growing out teams as well as leadership for Customer Success).

Compensation structureA large majority (almost 75%) of Customer Success professionals

receive variable compensation in addition to a base salary. Bonuses

are almost five times as common as commissions.

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EXECUTIVE SUMMARY SALARY SURVEY

Compensation by TitleMedian compensation ranges are as follows:

$150-175K for VP of Customer Success

$125-150K for Director of Customer Success

$75-100K for Customer Success Manager


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Reporting Structure

More than one-third of Customer Success teams report directly to theCEO, a significant increase from 15% last year. Being part of a larger

Services/Support organization is the next most common structure.

Goals and ChallengesProduct adoption and churn reduction are top goals for Customer Success

teams. Upsells still remains a lower priority. Operational issues are now a

bigger challenge for Customer Success teams compared to organizational

obstacles such as executive buy-in and definition of role.

Customer Success Maturity

Data continues to show that Customer Success as a profession is stillin its early days.

-

75% of companies have had Customer Success for 0-3 years

- 60% of professionals have been in Customer Success for 0-3 years

-

95% of professionals have previously worked in other roles

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EXECUTIVE SUMMARY STATE OF THE PROFESSION


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16%

35%36%

2%

11%

CHIEF CUSTOMER OFFICER / VP OF CUSTOMER SUCCESS

DIRECTOR OF CUSTOMER SUCCESS

CUSTOMER SUCCESS MANAGER

CUSTOMER SUCCESS ENGINEER

OTHER ROLES *

* Includes CEO, COO, Sales, Support, Operations

34%

34%

32%

0-5 TEAM MEMBERS

6-25 TEAM MEMBERS

>25 TEAM MEMBERS

BY SIZE OF CUSTOMER

SUCCESS TEAM

BY JOB TITLE

6

MEET THE SURVEY PARTICIPANTS


7/262015 Customer Success Salary Survey & State of the Profession Report |

CUSTOMER SUCCESS SALARYSURVEY RESULTS



26%

54%

11%

9%

Of the survey participants, 26% earn only a base salary. A majority receive other incentives, with bonuses

being the most common form of variable compensation (earned by over 60% of all survey participants).

Commissions are less common for Customer Success teams with only 20% earning commissions based on

meeting revenue goals.

BASE SALARY ONLY

BASE SALARY + BONUS

BASE SALARY + COMMISSON

BASE SALARY + BONUS + COMMISSON

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COMPENSATION STRUCTURE



Customer Success teams earn bonuses based on a wide range of criteria. Overall team and company

performance is the primary driver of bonuses followed by attainment of renewal and upsell goals. For a

smaller percentage of customer success professionals, bonuses also depend on MBOs such as

onboarding, training, and case studies.

57%

23%

14%

10%

6%

4%

9%

TEAM/COMPANY PERFORMANCE

RENEWALS GOAL

UPSELL GOAL

NET PROMOTER SCORE (NPS)

ONBOARDING/TRAINING

CASE STUDIES

OTHER

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BONUS COMPONENTS



20%

23%

57%

COMMISSION ON RENEWALS

COMMISSION ON UPSELLS

COMMISSION ON RENEWALS + UPSELLS

For a majority of Customer Success professionals who earn commissions, both renewals and upsellsare part of the commission structure.

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COMMISSION COMPONENTS



7%

17%

13%

19%

20%

13%

11%

Note: Compensationfigures include variable compensation (bonus and/or commissions)

$0 - 50K

$50K - 75K

$75K - 100K

$100K - 125K

$125K 150K

$150K 175K

$175K+

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ANNUAL COMPENSATION DISTRIBUTION



0%

5%

10%

15%

20%

25%

30%

$0-50K $50K-75K $75K-100K $100K-125K $125K-150K $150K-175K $175K+

2015

2014

Compared to last years salary data, where there was higher concentration in certain tiers,compensation is more uniformly distributed this year indicating hiring across all levels (i.e. companiesgrowing out teams as well as leadership for Customer Success).

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ANNUAL COMPENSATION DISTRIBUTION:YEAR-OVER-YEAR COMPARISON



CCO/VP:

DIRECTOR:

MANAGER:

$150K 175K

$75K 100K

$125K 150K

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MEDIAN ANNUAL COMPENSATION:BY JOB TITLE



2% 2% 2%

8% 7%

45%

34%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

CUSTOMER SUCCESSMANAGER

DIRECTOR OFCUSTOMER SUCCESS

CHIEF CUSTOMER OFFICER /VP OF CUSTOMER SUCCESS

2% 3%

8%

29%

40%

10% 9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

9%

33%

26%

16%

11%

3% 2%

0%

5%

10%

15%

20%

25%

30%

35%

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ANNUAL COMPENSATION DISTRIBUTION:BY JOB TITLE



MANAGER

DIRECTOR

CCO/VP

2014

2015

$159,168

$180,427

$135,062

$94,864

$133,606

$86,570

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AVERAGE ANNUAL COMPENSATION BY JOB TITLE:YEAR-OVER-YEAR COMPARISON



STATE OF THE CUSTOMER SUCCESSPROFESSION



34%

28%

15%11%

3%8%

REPORTSDIRECTLY TO CEO

PART OF SERVICES/SUPPORT

ORGANIZATION

PART OF COOORGANIZATION

PART OF SALES PART OF MARKETING OTHER

Morethan one-third of Customer Success teams are now a standalone function reporting directly to theCEO, a significant increase from last year when this figure was only 15%. The next most common structure

has the Customer Success team being part of a larger post-sales Services/Support organization.

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WHERE DOES CUSTOMER SUCCESS RESIDE INYOUR COMPANY?



27%

50%

23%



20%

24%

23%5%

8%

2% 1%8%

9% ACCOUNT MANAGEMENT

SUPPORT/SERVICES

SALES

CUSTOMER SUCCESS

MARKETING

PRODUCT/ENGINEERING

FINANCE

CONSULTING

OTHER

95% of the respondents have come to Customer Success from other fields and backgrounds,reinforcing that Customer Success as a profession is very young. Only 5% of the respondents viewtheir background as being in Customer Success.

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WHAT WAS YOUR PREVIOUS BACKGROUND?



12%

13%

38%

14%

23%

NO GROWTH 1-25%

26-50% 51-100%

100%+

Customer Success teams are growing rapidly. Three-fourths have expanded staffing by more than 25%, withapproximately one-third of these having more than doubled in the last year. At the same time, turnover

numbers indicate a fair degree of employee churn and movement as companies expand their teams and lookfor people with prior Customer Success experience in this emerging profession.

34%

22%

37%

5%2%

NO TURNOVER 1-10%

11-25% 26-50%

51%

HOW MUCH HAS YOUR TEAM GROWNIN THE LAST 12 MONTHS

HOW MUCH TURNOVER HAS YOURTEAM SEEN IN THE LAST 12 MONTHS

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CUSTOMER SUCCESS TEAM GROWTH AND TURNOVER


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TOP GOALS OF CUSTOMER SUCCESS TEAMS

57

Product Adoption

55

Churn Reduction

47

Onboarding

42 Customer Advocacy

39

Customer Support

20

Upsell

Seenext page for the relative priority of each goal for Customer Success teams.

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57%

55%

47%

42%

39%

20%

18%

30%

35%

41%

27%

37%

15%

13%

15%

16%

29%

36%

10%

2%

4%

2%

5%

7%

PRODUCT ADOPTION

CHURN REDUCTION

ONBOARDING

CUSTOMER ADVOCACY

CUSTOMER SUPPORT

UPSELLS

HIGH MEDIUM LOW NOT A PRIORITY

Product adoption and churn reduction are top goals for Customer Success teams. Upsells still remains alower priority compared to churn reduction.

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TOP GOALS OF CUSTOMER SUCCESS TEAMS


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30%

27%

23%

22%

18%

10%

47%

32%

38%

36%

29%

36%

21%

34%

37%

38%

32%

38%

2%

7%

2%

4%

21%

17%

REACTIVE APPROACH TOCUSTOMERS

TIME MANAGEMENT AND FOCUS

VISIBILITY INTO CUSTOMERS

SCALING THE TEAM

CLARITY OF ROLE AND GOALS

EXECUTIVE SUPPORT

HIGH MEDIUM LOW NOT A CHALLENGE

Operational issues including a reactive approach to customers, time management and focus, andscaling the team are bigger challenges for Customer Success today compared to broader

organizational obstacles such as executive buy-in and definition of team role.

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CHALLENGES OF CUSTOMER SUCCESS TEAMS


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22%

25%

29%

41%

50%

74%

BUSINESS INTELLIGENCE

CUSTOMER SUCCESS PLATFORM

PROJECT MANAGEMENT

EMAIL AUTOMATION

HELPDESK

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM followed by helpdesk remain the systems most widely used by Customer Success teams. Only25% are using a Customer Success platform.

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SYSTEMS USED BY CUSTOMER SUCCESS TEAMS


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ABOUT TOTANGO

Totango is the leader in customer success

management. We help businesses take a data-driven

approach to reducing churn, driving customer adoption

and advocacy, and maximizing lifetime revenue.

Totango monitors customer behavior along with data

from CRM, billing, and other enterprise systems togenerate insights on customer health and engagement.

The company's platform combines big data analytics

with powerful segmentation and predictive tools to help

companies pinpoint customers who need attention, spot

opportunities for upsell, and then manage the

touchpoints with customers to drive productivity and

scale for customer success teams.

You can find more customer success resources at:

www.totango.com/resources

[email protected]

1-800-634-1990

www.totango.com

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