Vital Insights

Customer Success is starting to move in the right direction, but there is still a gap between how we measure impact and the effect it has on the organization’s bottom line. The biggest disconnect I see is there is still the old assumption that CS is responsible for churn.

In reality companies that are truly customer-centric know that churn is not a CS metric but an organization indicator that relates to all facets of the organization. Customer Success should be responsible for other measurable areas (expansions, CSQLs, adoption and advocacy, etc.), not just churn.

We’re not out of the woods yet. Everyone is looking at reduced interest rates and inflation as encouraging signs, but my feeling is that SaaS overall is still dealing with the same foundational challenges; it is hyper-competitive and over-crowded, using outdated GTM playbooks based on seat-driven pricing packages, has burned out teams, and is facing massive disruption with AI.

We’re in uncharted territory for SaaS and need to be ready for a major reinvention. Where there is chaos there is opportunity... but only for those ready to pivot from the old playbooks.

In the current macroeconomic climate, many businesses are in cost-cutting mode, chopping the “nice-to-haves” off. More than ever, it is critical for Customer Success teams to future-proof themselves by implementing no-brainer metrics when it comes to showcasing their ROI and what they bring to the table. These metrics must be neither completely aligned nor far from your Sales function.

Yes, CS is a commercial division and is there to sustain your company’s cash flow, and we are more than that: We are our customer’s advocates ensuring our company objectives are about making our customers successful in using our products or services.

In 2024, we developed a new strategy to drive outcomes with reduced resources, adapting to current economic realities. I feel that Customer Success leaders were put on the spot to define strategies to mitigate churn, which has gradually influenced other departments to understand how they have a hand in protecting and growing revenue from the customer base.

While the impact on churn reduction in 2025 remains uncertain, we’re hopeful that in-product improvements will compensate for some high-touch activities that used to be CS-led. Moving forward, our goal is to consistently prioritize customer outcomes across all functions, integrating this mindset into our product development process.

As we grow, so does our Customer’s expectations. It’s been hard to keep up with increased demand at certain points, but I think we have the information to be better prepared for next year. We’re looking at AI to decrease repetitive tasks and to drive efficiency anywhere we can. With careful planning, we can and should be in good shape for next year.

2025 will be the year of scaled CS. This includes more and better use of digital CS tactics alongside customer-facing and the behind-the-scenes technology that allows CSMs to be more efficient and focused on their most impactful 1-1 work. Delivering scaled customer education, solutions, and support that is timely, relevant, and meaningful is a huge unlock for all post-sales teams.

CS teams that are working with Enterprise customers and supporting highly complex products will continue to struggle to scale. We should be focusing on the proven and repeatable processes that produce value for our customers and internal teams, and then map which tools and tech can help us scale those efforts.

I am confident in my team’s focus on expanding our stakeholder network and ensuring we have buyer consensus on our implementation work. It is critical that we create alignment across stakeholders to ensure we both deliver value at multiple levels and showcase the impact of that value at multiple levels.

My confidence is hindered more by the outside factors including our tech stack and industry realities that impact both budget and legislation. However, I know that even with these outside factors our company is better positioned to weather the storm with our team in place.

CS teams are at an inflection point as we turn the corner into 2025. The emphasis on scaling the function without scaling headcount in many companies will drive broader adoption of technology, like AI, to get more efficient. There needs to be a shift to CS as a profit center to justify spending on heads, and generating incremental revenue in addition to retention must be top of mind.

My CSM teammates and I are ready to bring in record numbers of expansions to our company next year while driving tangible outcomes to our customers and solidifying our company’s position in our industry. We will incorporate the use of AI in our day to day activities and hone in on a digital customer success program.

We are excited for 2025. We plan to invest in adding the right people to our team and necessary technology to give our customers the best possible experience with our product.

Our organization is laser-focused on reducing D&C, so our team launched cross-departmental meetings with CSMs and sales managers to directly address at-risk logos for in- and out-quarter forecasting. It’s been integral to retaining revenue, even locking in multi-year renewals for price-conscious customers, while putting the account teams in better lockstep with one another. This success has amplified the impact of the CS team and I expect to see further investment in the department as a result.

There are a lot of metrics used internally as well as in this survey that really depend on more than just a CSM. As CSMs, we do everything within our power to meet our customers’ needs.

However, at the end of the day, if a client churns due to product or design issues, it affects CSM metrics without telling the full story. CSMs are becoming the glue that holds multiple departments together for a united front, ensuring cohesive messaging and positive user outcomes.

I have the privilege of working in a company that is customer-led to its core. All the functions include me in their planning sessions and the product is shaped by the voice of the customer.

Customer Success is at a critical juncture. It goes without saying that CS hasn’t owned revenue as effectively and efficiently as possible over the last several years. As a result, most leadership teams haven’t given CS a seat at the table — and worse, many have CS on the chopping block entirely, thinking about what all can be replaced with AI. It’s critical for us in CS to adopt and embrace technology and revenue to drive the next chapter of CS as a proactive, technology-first revenue function.

It’s important to have a seat at the table so that enterprises can develop themselves towards current and future customer needs, be it product, services or experience levers. Expansion is still one of the highest ARR drivers and needs diligent attention by anyone in the company as time-to-value (including time and value) is getting decisive in the AI era.

Investors are scrutinizing customer metrics like never before to help them choose where to spend their money. Smart companies aren’t just giving CS a seat at the table; they are asking CS to help inform every aspect of the business. CS leaders and CSMs need to build strong business skills or they will be left behind.

Most CS teams have gotten that “seat at the table” they’ve been asking for for years now! But many still struggle with what to do now that they’re in the room, because they struggle to articulate and demonstrate their value to their executive teams and boards. The CS teams that can clearly measure and prove their impact will be the ones that grow in headcount and receive more resources in 2025.