2020 State of Customer Success Webinar Notes

Introduction

• Welcome by host (Mark) and intro to founder/CEO (Dave Blake)
• Overview of the structure of the session:
  • Brief overview of survey data
  • Deep dive into key areas
  • Q&A session
  • Announcement of prize winners

Client Success Overview

• Who is Client Success?
  • A customer success growth platform helping manage customer journeys.
  • Focus on onboarding, adoption, renewals, and growth.
  • Leadership and collaboration on customer success initiatives.
  • Recognition: Leader on G2 in customer success category, 2020 Cody Award for best customer success solution.

Survey Methodology

• Over 400 customer success professionals surveyed.
  • Primarily from North America (70%) and EMEA regions.
  • Mix of early-stage startups (Series A, B) and enterprise companies.

Key Findings

Growth of Customer Success Teams

• 58% of teams grew in the last six months, 30% held steady, 12% reduced.
• Observations on the impact of COVID-19 on hiring practices, emphasizing importance of customer success.
• Increase in importance of CSM roles reporting directly to CEOs (41%).

Time Allocation of Customer Success Managers (CSMs)

• 80% of CSMs' time spent on customer enablement tasks (onboarding/adoption).
• Only 18-20% on revenue-specific tasks (renewals/growth).
• Importance of driving results in enablement impacting renewals and expansions positively.

Customer and Organizational Focus

• Shift from product-centric to experience-centric.
  • Customer experience now considered critical for competition (Brian Halligan quote).
• The average net revenue retention rate across surveyed companies was 99%.

Diversity Insights

• Gender Diversity: near 50/50 at entry-level; decreases in leadership roles.
• Racial Diversity: only 12% of CSMs and 17% of leaders are people of color.
  • Call to action for improvement in racial diversity.

Compensation Models

• Base plus bonus: about 50% of companies.
• Base only: a surprising 25% of companies.
  • Concerns about the effectiveness of clear incentive structures for CSMs.

Viewpoints on Customer Advisory Boards

• 40% of companies have customer advisory boards; often only available in larger, established companies.
• Suggestions for simpler alternatives for smaller companies (e.g., idea exchanges).

Suggestions for Improvements

• Reduce internal meeting times, increase direct customer engagement.
• Encourage organizations to recognize and celebrate renewals.
• Highlight the benefits of having CSMs more focused on high-impact activities.

Event Announcement

• Launch of 2021 CSM Summit: first event tailored for frontline CSM professionals.
  • Focus on learning and networking among peers.
• Invitation to sign up for the summit and participate in planning efforts.

Prize Winners Announced

• Five winners drawn from survey participants who will receive Apple prizes (AirPods, Beats headphones, Apple Watches).

Closing Remarks

• Thanks to participants for contributing to the survey and commitment to enhancing customer success practices.
• Encouragement to join the future summit.
• Reminder: 'Customer success is our mission.'