Dear SaaStr: What Should I Know As a First-Time Customer Success Manager?
As a new Customer Success Manager (CSM), here’s what you need to know to hit the ground running and make an impact:
-
Understand Your Role’s Revenue Impact — Revenue vs Retention: Customer Success isn’t just about keeping customers happy anymore at most B2B companies —it’s often a revenue-driving function now. In SaaS, 50% of revenue often comes from existing customers, and up to 50% of growth can come from upsells, expansions, and renewals. That means you’re directly or indirectly managing as much as 75% of the company’s revenue. Take that responsibility seriously. And understand what comes first — upsell or retention. One always comes first these days.
-
Be Proactive, Not Reactive: Your job isn’t just to respond to issues—it’s to anticipate them. Proactively help customers get the most out of your product. This means onboarding them effectively, ensuring they see ROI quickly, and guiding them toward success before they even ask for help. That means talking to a lot of customers proactively.
-
Know the Product Inside and Out. Ideally, Even Before You Start: You can’t help customers succeed if you don’t deeply understand the product. Learn it better than anyone else. Customers will look to you as the expert, and your ability to guide them will directly impact their satisfaction and retention.
-
Focus on Metrics: Customer Success is all about the numbers. Track churn, retention, Net Revenue Retention (NRR), GRR and upsell rates. These metrics are your report card. If you’re not measuring, you’re guessing—and guessing doesn’t scale.
-
Build Relationships with Customers. And Visit As Many In Person As You Can: High EQ is critical. You need to connect with customers on a personal level, understand their goals, and align your efforts with their success. But don’t stop there—bring value beyond just being “nice.” Be consultative, solve problems, and help them achieve their business objectives.
-
Be Organized and Committed: Early-stage CSMs often wear many hats—onboarding, training, webinars, even sales demos. You’ll need strong organizational skills to juggle these responsibilities. But above all, your commitment to the customer’s success will set you apart. Passion for the product and a relentless focus on customer outcomes will take you far.
-
Advocate for Your Customers Internally: You’re the voice of the customer within your company. If they’re struggling with a feature or need something new, it’s your job to communicate that to the product and engineering teams. Great CSMs bridge the gap between customers and the company.
-
Learn to Drive Net Negative Churn: The best SaaS companies achieve net negative churn, meaning they grow revenue from existing customers faster than they lose it. This happens when you help customers expand usage, buy more seats, or upgrade plans. Always be thinking about how to drive more value for your customers—and in turn, for your company.
-
Embrace the Opportunity: Being a CSM is exciting because you’re at the center of the customer journey. You have the chance to shape how customers perceive and use your product. It’s a role with immense potential to drive growth and build lasting relationships.
- Be Loved By Your Customers — For Real. It’s not enough to be a “people person”. You have to go so far that your customers love you. Be honest about this, and what it will take.
If you focus on these principles, you’ll not only succeed as a CSM but also become a critical driver of your company’s growth.
