Where Customer Success Reports To Typically, Who Really Owns Renewals, And More from Churn Zero | SaaStr


So Churn Zero put out a great new report surveying 1,037 customer success professionals.   The average size was 51-200 employees, so when things are taking off.  Grab it here.

A few things stood out to me:

#1.  53% of VPs of CS report to the CEO or COO, and then 17% to CRO/VPS.  Some good data on this split.  I generally see CS reporting to a CRO as a recipe for conflicts, but sometimes it’s the best option:

#2.  There is almost no software and non-headcount budget for CS.  This data is interesting.  64% of CS teams spend $200,000 or less a year on non-headcount, with growth stage companies spending the least, just 0.1% of revenue.  No need to throw money away on tools you don’t need, but folks, please support your CS teams!

#3. 34% of CS Teams Have a Veto on Bad-Fit Customers.  I do love this.  It can be a bit tricky to implement if you don’t have high alignmment between your VP of Sales and your VP of CS, but you should still try to do this.  Churn-and-burn deals help no one except the AE getting a commission.

#4.  50% of CS teams own renewals — and 50% (of course) don’t.  This was helpful to see.  I love making renewals as pain-free as possible.  Having Sales own them usually creates the most pain.  Having it be somewhat automated by accounting is my favorite, when it works.

#5.  41% of CS Teams Own Revenue Expansion — More Often Than Sales.  This really surprised me.  I rarely see CS own expansion when it’s more than 10% of revenue, i.e. when it needs to be negotiated.  I see them support expansion, but not own it, generally.

and finally:

#6.  58% of SaaS companies surveyed have a real Customer Marketing function.  I love it!  And 71% of the time, it reports straight into marketing.  More on Customer Marketing here.

A really great report!  Thank you Churn Zero!

Published on November 18, 2022

Go to Publisher: SaaStr
Author: Jason Lemkin