2016 Customer Success Salary Survey
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Transcript of 2016 Customer Success Salary Survey
Page 2
Introduction
Executive Summary
Meet the Survey Participants
Customer Success Salary Survey Results
Compensation StructureBonus ComponentsCommission ComponentsAnnual Compensation DistributionAnnual Compensation ComparsionCompensation Summary: Customer Success ManagerCompensation Summary: Sr. Customer Success Manager
State of the Customer Success Profession
Where Does Customer Success Reside in Your Company?Customer Success MaturityWhat Was Your Previous Background?Customer Success Team Growth and Turnover
Top Goals Of Customer Success TeamsChallenges Of Customer Success TeamsTechnology Used By Customer Success Teams
3
4
6
7
89
1011121314
20
21222324
262728
Table of Contents
Compensation Summary: Customer Success Engineer 15Differences By Team Size 29
Compensation Summary: Director of Customer SuccessCompensation Summary: VP of Customer SuccessCompensation Summary: Chief Customer Officer
161718
Average Compensation YoY Comparison 19
Highest Priority Goals of Customer Success Teams 25
Page 3
The 2016 Customer Success Salary Report surveyed 1000 respondentsto establish industry benchmarks for Customer Success professionalsregarding compensation trends, the growth and maturity of the role, andthe unique challenges and goals in our industry.
This year’s survey saw a 25% increase in the number of respondents, andincludes participants from all seven continents.
Page 4
Executive Summary - State of the Profession
A growing number of companies are taking steps to build and manage customer success programs. Enterprises in particular are showing significant strides in adopting the practice of customer success based on their evolving team structures and upgraded technology stack.
Customer Success is Going Enterprise
The number of teams reporting to the CEO has climbed from 15% to 50% over the lasttwo years, followed by teams that are reporting directly to sales (20%).
Around 40% of participants reported customer success teams larger than 10 and a highervolume of “Customer Success” titles are being reported than ever before.
Enterprise companies are focused on similar goals as their smaller counterparts, but havea higher reliance on customer success platforms.
Page 5
Executive Summary - Salary Survey
Customer Success executives and teams are starting to be held accountable for direct business outcomes.With the combination of variable compensation and a decrease in overall compensation, we assume thatthere is a misalignment between customer success team goals and outcome expectations.
Tying Business Outcomes to Customer Success Compensation
CCO/VP of Customer Success - $158,000Director of Customer Success - $126,000Sr. Customer Success Manager - $110,000
More than 25% of respondents saw a decrease or no change in compensation compared to last year, with all titles seeing a decrease in average annual compensation.
Customer Success Engineer - $90,000Customer Success Manager - $77,000
Almost 75% of professionals received some form of variable compensation, with the majority(47%) receiving bonuses based on metrics like churn reduction, adoption, and customer health.
Page 6
Meet The Survey Participants
By Job Title
Chief Customer OfficerVP of Customer SuccessDirector of Customer SuccessCustomer Success ManagerCustomer Success EngineerAccount ManagerOther*
* Includes CEO, COO, Sales, Support, Operations
10.9%
20.8%
42.2%
3.6%
19.2%
2.4%
1.1%By Team Size
1-5 Team Members6-25 Team Members> 25 Team Members
41%
41%
18%
By Region USA (73%), Europe (11%), North America (Excluding USA) (9%), Asia (3%), Middle East (2%), South America (1%), Australia NZ (1%), Africa (<1%)
Page 8
Compensation Structure
28%
47%
13%
12%
Base + Bonus + Commission
Base + Commission
Base + Bonus
Base Salary Only The majority of survey participants (72%) earn incentivesalong with their base salary, with 47% earning a bonus formetrics including churn reduction, portfolio health, andproduct adoption.
Commission continues to be a less common component of variable compensation. Only 12% of the respondentsreported compensation that includes base salary, bonusand commission.
Page 9
Bonus Components
The primary driver for the bonus continues to be team and company performance at 42%. A smallerpercentage of customer success professionals have bonuses tied to other components such as case studies (5%) or Net Promoter Score (11%).
Team/Company Performance
Renewal Goal
Upsell Goal
Net Promoter Score (NPS)
Onboarding/Training
Case Studies
Other
42%
29%
21%
11%
9%
5%
14%
Page 10
Commission Components
Commission on Renewals + Upsells
Commission on Upsells
Commission on Renewals
56%
25%
19%
Approximately 25% of survey respondents earn commission as part of their compensation package. Of that 25%, the majority earn commission on both renewals and upsells (56%), while less than half earn commission on either just upsells (25%) or just renewals (19%).
Page 11
Annual Compensation Distribution
12%
23%
17%
9%
19%
12%
8%
Note: Compensation figures include variable compensation (bonus and/or commissions)
$0-50K
$125K-150K
$100K-125K
$50K-75K
$75K-100K
$150K-175K
$175K+
Page 12
Annual Compensation Comparison
0%
5%
10%
15%
20%
25%
30%
$0-49,999 $125-149,999$100-124,999$50-74,999 $75-99,999 $150-174,999 $175,000+
201620152014
Compared to last year’s data, compensation is less uniformly distributed. With an increase ofhiring entry-level customer success managers, an upward trend has emerged for respondentsreporting compensation below $75,000.
Page 13
Compensation Summary: Customer Success Manager
0
10%
20%
30%
25%26%
6%
25%
6%8%
4%
5%
33%
16%
46%
2016 AverageCompensation - $77,000
$0-49,999
$50-74,999
$75-99,999
$100-12
4,999
$125-149,999
$150-174,999
$175,000+
Increased 0-10%Increased 10-20%Increased 20%+No Change/Decreased
Compensation Compared to Last Year
Page 14
Compensation Summary: Sr. Customer Success Manager
0
10%
20%
30% 28%
5%
0%
28%
20%
11%
8% 18%
30%52%
2016 AverageCompensation - $111,000
Increased 0-10%Increased 10-20%Increased 20%+No Change/Decreased
Compensation Compared to Last Year
$0-49,999
$50-74,999
$75-99,999
$100-12
4,999
$125-149,999
$150-174,999
$175,000+
Page 15
Compensation Summary: Customer Success Engineer
0
10%
20%
30%
30%
14%
3%
17% 18%
10%8%
11%
25%
25%
39%
2016 AverageCompensation - $90,000
Compensation Compared to Last Year
Increased 0-10%Increased 10-20%Increased 20%+No Change/Decreased
$0-49,999
$50-74,999
$75-99,999
$100-12
4,999
$125-149,999
$150-174,999
$175,000+
Page 16
Compensation Summary: Director of Customer Success
0
10%
20%
13%
6%
1%
19%21%
20% 20%
11%
27%
12%
50%
2016 AverageCompensation - $126,000
Compensation Compared to Last Year
Increased 0-10%Increased 10-20%Increased 20%+No Change/Decreased
$0-49,999
$50-74,999
$75-99,999
$100-12
4,999
$125-149,999
$150-174,999
$175,000+
Page 17
Compensation Summary: VP of Customer Success
0
20%
40%
60%
80%
4%1%0%
9%12%10%
64%
9%
23%
23%
29%
$0-49,999
$50-74,999
$75-99,999
$100-12
4,999
$125-149,999
$150-174,999
$175,000+
2016 AverageCompensation - $158,000
Compensation Compared to Last Year
Increased 0-10%Increased 10-20%Increased 20%+No Change/Decreased
Page 18
Compensation Summary: Chief Customer Officer
0
20%
40%
60%
80%
0%4%
1% 0%
9%8%
78%
9%
36%
27%
28%
2016 AverageCompensation - $156,000
Compensation Compared to Last Year
Increased 0-10%Increased 10-20%Increased 20%+No Change/Decreased
$0-49,999
$50-74,999
$75-99,999
$100-12
4,999
$125-149,999
$150-174,999
$175,000+
Page 19
Average Compensation YoY Comparison
Chief Customer Officer
VP Customer Success
Director of Customer Success
Customer Success Manager
$156K
$180K
$159K
$158K
$180K
159K
$126K
$133K
$135K
$77K
$86K
$94K
201620152014
*Data for Sr. Customer Success Managerand Customer Success Engineer are notavailable from 2015 and 2014.
Page 21
Where Does Customer Success Reside In Your Company?
ReportDirectly to
CEO
Part ofSales
Part ofCOO Org
Part ofServices &
Support
Part ofRevenue
Part ofMarketing
Other (CPO,CTO, CFO, etc)
50%
20%
16%
5%3% 3% 3%
Following last year’s trend, it is becoming more common for Customer Success to roll up directly tothe CEO, jumping from 15% to 34% in 2015 and from 34% to 50% in 2016.
Page 22
Customer Success Maturity
4%
22%
53%
3%
18%7% 20%
42%
9%
22%
How Long Have You Had a Customer Success Team? How Many Years Have You Worked in Customer Success?
<1 year1-3 years4-6 years7-9 years10+ years
75% of participants reported that their company has had a Customer Success team for 3 years or less. More than 60% of respondents have 3 years experience or less, with only 16% claiming more than 7 years of experience in Customer Success.
Page 23
What Was Your Previous Background?
Always in Customer SuccessAccount ManagementSupport/ServicesSalesMarketingFinanceConsultingOther (HR, Operations, Engineering, etc)
8%
18%
17%
10%
20%
2%
18%
7%
With 92% of respondents coming from a different background,Customer Success continues to be a relatively young profession.This year we are also seeing a rise in respondents reporting “Associate” titles and entry-level roles in Customer Success.
Page 24
Customer Success Team Growth & Turnover
How Much Has Your Team GrownIn The Last 12 Months?
How Much Turnover Has Your TeamSeen In The Last 12 Months?
1-10%11-25%26-50%51%+No Turnover
Customer Success teams continue to grow at a rapid pace with only 20% of teams experiencing no growthor team downsizing. Turnover appears to be relatively low, with 67% of respondents reporting little or noturnover (< 10%) for their team in the last twelve months.
5%
28%
19%
39%
9%
27%
11%
19%
16%
12%
5% 10%
1-10%11-25%26-50%51-100%100%+No growthDownsized team
Page 25
Highest Priority Goals Of Customer Success Teams
Churn ReductionOnboardingProduct Adoption
76%61%
60%Customer SupportCustomer AdvocacyUpsells
48%44%31%
Churn Reduction
Onboard
ing
Product Adoptio
n
Customer S
upport
Customer A
dvocac
yUpsells
0
20%
40%
60%
80%
Page 26
Top Goals Of Customer Success Teams
High PriorityMedium PriorityLow PriorityNot a Priority
Churn reduction (76%), product adoption(60%), and onboarding (60%) are top goalsfor Customer Success teams. Continuinga 3-year trend, upsells remain a lowerpriority.
0
20%
40%
Reactive
Approaches
Visibility
Into Adoptio
n& Hea
lth
Prioriti
zation
Scaling th
e Team
Clarity
of Role & Goals
Executiv
e Support
Page 27
Challenges Of Customer Success Teams
Major ChallengeModerate ChallengeMinor ChallengeNot a Challenge
Companies continue to struggle withreactive processes (39%) and gettingmore visibility into adoption and healthmetrics for customers (39%). Only 16%of respondents consider executivesupport as a major challenge.
Page 28
Technology Used By Customer Success Teams
CRM and helpdesk systems continue to bethe most widely used technology by customer success teams. The use of customer success platforms increased signficantly comparedto last year, jumping from 25% to 36%.
CRM
Helpdesk
Email Automation
Customer SuccessPlatform
Project Management
BusinessIntelligence
78%
49%
40%
36%
29%
24%
Page 29
Small vs. Large Team Differences
This year, we compared the composition, goals and challenges of small versus large customer success teams. Large teams are defined as organizations with 25 or more customer success team members.
More large teams are using customer success platforms (55%) compared to
the industry average (36%).
Product adoption (66%) is a higher priority than onboarding (57%) for
large teams.
Large teams report higher turnover, with only 12% reporting no turnover
compared to the average (39%).