The 2016 Customer Success Salary Report surveyed 1000 respondents to establish industry benchmarks for Customer Success professionals regarding compensation trends, the growth and maturity of the role, and the unique challenges and goals in our industry. This year’s survey saw a 25% increase in the number of respondents, and includes participants from all seven continents.

1. 2016
Customer Success
Salary Survey & State
of the Profession
Report
presents

2. Page 2
Introduction
ExecutiveSummary
MeettheSurveyParticipants
CustomerSuccessSalarySurveyResults
CompensationStructure
BonusComponents
CommissionComponents
AnnualCompensationDistribution
AnnualCompensation Comparsion
CompensationSummary:CustomerSuccessManager
CompensationSummary:Sr.CustomerSuccessManager
StateoftheCustomerSuccessProfession
WhereDoesCustomerSuccessResideinYourCompany?
CustomerSuccessMaturity
WhatWasYourPreviousBackground?
CustomerSuccessTeamGrowthandTurnover
TopGoalsOfCustomerSuccessTeams
ChallengesOfCustomerSuccessTeams
TechnologyUsedByCustomerSuccessTeams
3
4
6
7
8
9
10
11
12
13
14
20
21
22
23
24
26
27
28
TableofContents
CompensationSummary:CustomerSuccessEngineer 15
DifferencesByTeamSize 29
CompensationSummary:DirectorofCustomerSuccess
CompensationSummary:VPofCustomerSuccess
CompensationSummary:ChiefCustomerOfficer
16
17
18
AverageCompensationYoYComparison 19
HighestPriorityGoalsofCustomerSuccessTeams 25

3. Page 3
The2016CustomerSuccessSalaryReportsurveyed1000respondents
toestablishindustrybenchmarksforCustomerSuccessprofessionals
regardingcompensationtrends,thegrowthandmaturityoftherole,and
theuniquechallengesandgoalsinourindustry.
Thisyear’ssurveysawa25%increaseinthenumberofrespondents,and
includesparticipantsfromallsevencontinents.

4. Page 4
ExecutiveSummary-StateoftheProfession
Agrowingnumberofcompaniesaretakingstepstobuildandmanagecustomersuccessprograms.Enterprises
inparticularareshowingsignificantstridesinadoptingthepracticeofcustomersuccess basedontheirevolving
teamstructuresandupgradedtechnologystack.
CustomerSuccessisGoingEnterprise
ThenumberofteamsreportingtotheCEOhasclimbedfrom15%to50%overthelast
twoyears,followedbyteamsthatarereportingdirectlytosales(20%).
Around40%ofparticipantsreportedcustomersuccessteamslargerthan10andahigher
volumeof“CustomerSuccess”titlesarebeingreportedthaneverbefore.
Enterprisecompaniesarefocusedonsimilargoalsastheirsmallercounterparts,buthave
ahigherrelianceoncustomersuccessplatforms.

5. Page 5
ExecutiveSummary-SalarySurvey
CustomerSuccessexecutivesandteamsarestartingtobeheldaccountablefordirectbusinessoutcomes.
Withthecombinationofvariablecompensationandadecreaseinoverallcompensation,weassumethat
thereisamisalignmentbetweencustomersuccessteamgoalsandoutcomeexpectations.
TyingBusinessOutcomestoCustomerSuccessCompensation
CCO/VPofCustomerSuccess-$158,000
DirectorofCustomerSuccess-$126,000
Sr.CustomerSuccessManager-$110,000
Morethan25%ofrespondentssawadecreaseornochangeincompensationcomparedto
lastyear,withalltitlesseeingadecreaseinaverageannualcompensation.
CustomerSuccessEngineer-$90,000
CustomerSuccessManager-$77,000
Almost75%ofprofessionalsreceivedsomeformofvariablecompensation,withthemajority
(47%)receivingbonusesbasedonmetricslikechurnreduction,adoption,andcustomerhealth.

6. Page 6
MeetTheSurveyParticipants
ByJobTitle
ChiefCustomerOfficer
VPofCustomerSuccess
DirectorofCustomerSuccess
CustomerSuccessManager
CustomerSuccessEngineer
AccountManager
Other*
*IncludesCEO,COO,Sales,Support,Operations
10.9%
20.8%
42.2%
3.6%
19.2%
2.4%
1.1%
ByTeamSize
1-5TeamMembers
6-25TeamMembers
>25 TeamMembers
41%
41%
18%
ByRegion USA(73%), Europe(11%),NorthAmerica(ExcludingUSA)(9%),Asia(3%),MiddleEast(2%),
SouthAmerica(1%),AustraliaNZ(1%),Africa(<1%)

7. Page 7
Customer Success Salary
Survey Results

8. Page 8
CompensationStructure
28%
47%
13%
12%
Base+Bonus +Commission
Base+Commission
Base+Bonus
BaseSalaryOnly
Themajorityofsurveyparticipants(72%)earnincentives
alongwiththeirbasesalary,with47%earningabonusfor
metrics including churn reduction, portfolio health, and
productadoption.
Commissioncontinuestobealesscommoncomponent
ofvariablecompensation.Only12%oftherespondents
reportedcompensationthatincludesbasesalary,bonus
andcommission.

9. Page 9
BonusComponents
Theprimarydriverforthebonuscontinuestobeteamandcompanyperformanceat42%.Asmaller
percentageofcustomersuccessprofessionalshavebonusestiedtoothercomponentssuchascase
studies(5%)orNetPromoterScore(11%).
Team/CompanyPerformance
RenewalGoal
UpsellGoal
NetPromoterScore(NPS)
Onboarding/Training
CaseStudies
Other
42%
29%
21%
11%
9%
5%
14%

10. Page 10
CommissionComponents
CommissiononRenewals+Upsells
CommissiononUpsells
CommissiononRenewals
56%
25%
19%
Approximately25%ofsurveyrespondentsearncommissionaspartoftheircompensationpackage.
Ofthat25%,themajorityearncommissiononbothrenewalsandupsells (56%),whilelessthanhalf
earncommissiononeitherjustupsells(25%)orjustrenewals(19%).

11. Page 11
AnnualCompensationDistribution
12%
23%
17%
9%
19%
12%
8%
Note:Compensationfiguresincludevariablecompensation(bonusand/orcommissions)
$0-50K
$125K-150K
$100K-125K
$50K-75K
$75K-100K
$150K-175K
$175K+

12. Page 12
AnnualCompensationComparison
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+
2016
2015
2014
Comparedtolastyear’sdata,compensationislessuniformlydistributed.Withanincreaseof
hiringentry-levelcustomersuccessmanagers,anupwardtrendhasemergedforrespondents
reportingcompensationbelow$75,000.

13. Page 13
CompensationSummary:CustomerSuccessManager
0
10%
20%
30%
25%
26%
6%
25%
6%
8%
4%
5%
33%
16%
46%
2016Average
Compensation-$77,000
$0-49,999$50-74,999
$75-99,999
$100-124,999$125-149,999$150-174,999
$175,000+
Increased0-10%
Increased10-20%
Increased20%+
NoChange/Decreased
CompensationComparedtoLastYear

14. Page 14
CompensationSummary:Sr.CustomerSuccessManager
0
10%
20%
30% 28%
5%
0%
28%
20%
11%
8% 18%
30%
52%
2016Average
Compensation-$111,000
Increased0-10%
Increased10-20%
Increased20%+
NoChange/Decreased
CompensationComparedtoLastYear
$0-49,999$50-74,999
$75-99,999
$100-124,999$125-149,999$150-174,999
$175,000+

15. Page 15
CompensationSummary:CustomerSuccessEngineer
0
10%
20%
30%
30%
14%
3%
17%
18%
10%
8%
11%
25%
25%
39%
2016Average
Compensation-$90,000
CompensationComparedtoLastYear
Increased0-10%
Increased10-20%
Increased20%+
NoChange/Decreased
$0-49,999$50-74,999
$75-99,999
$100-124,999$125-149,999$150-174,999
$175,000+

16. Page 16
CompensationSummary:DirectorofCustomerSuccess
0
10%
20%
13%
6%
1%
19%
21%
20% 20%
11%
27%
12%
50%
2016Average
Compensation-$126,000
CompensationComparedtoLastYear
Increased0-10%
Increased10-20%
Increased20%+
NoChange/Decreased
$0-49,999$50-74,999
$75-99,999
$100-124,999$125-149,999$150-174,999
$175,000+

17. Page 17
CompensationSummary:VPofCustomerSuccess
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
$100-124,999$125-149,999$150-174,999
$175,000+
2016Average
Compensation-$158,000
CompensationComparedtoLastYear
Increased0-10%
Increased10-20%
Increased20%+
NoChange/Decreased

18. Page 18
CompensationSummary:ChiefCustomerOfficer
0
20%
40%
60%
80%
0%
4%
1% 0%
9%8%
78%
9%
36%
27%
28%
2016Average
Compensation-$156,000
CompensationComparedtoLastYear
Increased0-10%
Increased10-20%
Increased20%+
NoChange/Decreased
$0-49,999$50-74,999
$75-99,999
$100-124,999$125-149,999$150-174,999
$175,000+

19. Page 19
AverageCompensationYoYComparison
ChiefCustomerOfficer
VPCustomerSuccess
DirectorofCustomerSuccess
CustomerSuccessManager
$156K
$180K
$159K
$158K
$180K
159K
$126K
$133K
$135K
$77K
$86K
$94K
2016
2015
2014
*DataforSr.CustomerSuccessManager
andCustomerSuccessEngineerarenot
availablefrom2015and2014.

20. Page 20
State of the Customer Success
Profession

21. Page 21
WhereDoesCustomerSuccessResideInYourCompany?
Report
Directlyto
CEO
Partof
Sales
Partof
COOOrg
Partof
Services&
Support
Partof
Revenue
Partof
Marketing
Other(CPO,
CTO,CFO,etc)
50%
20%
16%
5%
3% 3% 3%
Followinglastyear’strend,itisbecomingmorecommonforCustomerSuccesstorollupdirectlyto
theCEO,jumpingfrom15%to34%in2015andfrom34%to50%in2016.

22. Page 22
CustomerSuccessMaturity
4%
22%
53%
3%
18%
7%
20%
42%
9%
22%
HowLongHaveYouHadaCustomerSuccessTeam? HowManyYearsHaveYouWorkedinCustomerSuccess?
<1year
1-3years
4-6years
7-9years
10+years
75%ofparticipantsreportedthattheircompanyhashadaCustomerSuccessteamfor3years
orless. Morethan60%ofrespondentshave3yearsexperienceorless,withonly16%
claimingmorethan7yearsofexperienceinCustomerSuccess.

23. Page 23
WhatWasYourPreviousBackground?
AlwaysinCustomerSuccess
AccountManagement
Support/Services
Sales
Marketing
Finance
Consulting
Other(HR,Operations,Engineering,etc)
8%
18%
17%
10%
20%
2%
18%
7%
With92%ofrespondentscomingfromadifferentbackground,
CustomerSuccesscontinuestobearelativelyyoungprofession.
Thisyearwearealsoseeingariseinrespondentsreporting
“Associate”titlesandentry-levelrolesinCustomerSuccess.

24. Page 24
CustomerSuccessTeamGrowth&Turnover
HowMuchHasYourTeamGrown
InTheLast12Months?
HowMuchTurnoverHasYourTeam
SeenInTheLast12Months?
1-10%
11-25%
26-50%
51%+
NoTurnover
CustomerSuccessteamscontinuetogrowatarapidpacewithonly20%ofteamsexperiencingnogrowth
orteamdownsizing.Turnoverappearstoberelativelylow,with67%ofrespondentsreportinglittleorno
turnover(<10%)fortheirteaminthelasttwelvemonths.
5%
28%
19%
39%
9%
27%
11%
19%
16%
12%
5% 10%
1-10%
11-25%
26-50%
51-100%
100%+
Nogrowth
Downsizedteam

25. Page 25
HighestPriorityGoalsOfCustomerSuccessTeams
ChurnReduction
Onboarding
ProductAdoption
76%
61%
60%
CustomerSupport
CustomerAdvocacy
Upsells
48%
44%
31%

26. ChurnReduction
O
nboarding
ProductAdoption
Custom
erSupportCustom
erAdvocacy
Upsells
0
20%
40%
60%
80%
Page 26
TopGoalsOfCustomerSuccessTeams
HighPriority
MediumPriority
LowPriority
NotaPriority
Churnreduction(76%),productadoption
(60%),andonboarding(60%)aretopgoals
forCustomerSuccessteams.Continuing
a3-yeartrend,upsellsremainalower
priority.

27. 0
20%
40%
ReactiveApproachesVisibilityIntoAdoption
&
Health
Prioritization
ScalingtheTeamClarityofRole&
Goals
ExecutiveSupport Page 27
ChallengesOfCustomerSuccessTeams
MajorChallenge
ModerateChallenge
MinorChallenge
NotaChallenge
Companiescontinuetostrugglewith
reactiveprocesses(39%)andgetting
morevisibilityintoadoptionandhealth
metricsforcustomers(39%).Only16%
ofrespondentsconsiderexecutive
supportasamajorchallenge.

28. Page 28
TechnologyUsedByCustomerSuccessTeams
CRMandhelpdesksystemscontinuetobe
themostwidelyusedtechnologybycustomer
successteams.Theuseofcustomersuccess
platformsincreasedsignficantlycompared
tolastyear,jumpingfrom25%to36%.
CRM
Helpdesk
EmailAutomation
CustomerSuccess
Platform
Project
Management
Business
Intelligence
78%
49%
40%
36%
29%
24%

29. Page 29
Smallvs.LargeTeamDifferences
Thisyear,wecomparedthecomposition,goalsandchallengesofsmallversuslargecustomersuccess
teams.Largeteamsaredefinedasorganizationswith25ormorecustomersuccessteammembers.
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%).

30. Totango delivers the most comprehensive
customer success solution for recurring
revenue businesses by taking a data-driven
approachtonurturingcustomers,accelerating
product adoption and ROI, and maximizing
lifetime revenue from customers.
www.totango.com
1-800-634-1990
@Totango