Around 5 years ago, in came a new role called “product management”. No one had heard of this role, but after a short while, this role became so important that everyone wondered — how did we survive without this role before!
Similar stuff is now happening with a new role called Customer Success. It started with SaaS companies and now every company seems to be interested in hiring for this role. The net effect is almost the same — heck — why we didn’t have this role before.
The demand for Customer Success is increasing
A search on Google trends shows a meteoric rise in the interest in this term in last 8 years:
Similarly, there were 3x more jobs in Customer Success in last quarter than entire of 2017.
Although salaries are not high, just yet.
Unfortunately, given the lack of awareness of this role, it seems companies are putting this role somewhere close to “support” than “product”. Hence while the salaries are higher than the support roles, they are still much lower than roles like product management or sales.
But we at CutShort think this will change fast, once the companies see the real value of this role.
Why are the salaries of Customer Success Managers going to increase fast?
Salaries of any role is a function of the value they deliver to the company
This is why sales, data science, engineering and product management are among the highest paid areas in the industry.
We estimate the salaries of Customer Success Managers will increase fast as companies start realizing the tremendous value they deliver. Some examples of this value are:
- Optimizing the funnel of Signups > Paid customers
- Increasing customer satisfaction, thus reducing churn.
- Increasing the CLTV by upselling and cross-selling
- Increasing referral rate
The net effect of these activities combined together can be extraordinary. As David Skok discovered, a SaaS business can be 3 times bigger by just improving its churn from 2.5% to -2.5%. (Minus churn means more cross-sell and up sel)
Don’t believe me? Check out what happened at CutShort, when we started focusing on Customer Success just 2 months ago.
- 2x increase in sales
- 30% rise in ticket size
- NPS jumped to 8.3 from 7.2
1. Learn Best practices for Customer Success:
Here in this video, experts from the team that trains Googlers are explaining the best practices for client management.
2. Companies currently hiring in Customer Success
Check out all the Customer Success Manager jobs in India here.
Are you in Customer Success?
What do you think? Why has the demand for Customer success managers increased? Do you think Indian companies understand the value of this role? What are the most enjoyable parts of your job? Do you also feel that demand for customer success roles is increasing? Let us know in comments!