Customer success teams are quickly becoming the make-or-break unit for organizations. Getting the right ratio of reps to clients is a balancing act that should be handled with care.
Follow this simple guide to figure out where the tipping point is for your team, and how to seamlessly build your troops.
When Is It Time to Scale Customer Success Efforts?
First, consider some general rules of thumb when it comes to customer success team productivity:
- Each CSM (Customer Success Manager) should be able to manage around $2 million in annual contract value (ACV). However, the account revenue size and number of accounts a rep can manage have an inverse relationship. Reps handling smaller valued accounts generally manage a higher volume, where reps handling higher valued accounts manage only a few.
- CSM reps should manage no more than 50 clients at a time. This number may fluctuate based on the complexity of your business model and product. The more complex setup is, the fewer customers each rep can manage. You may also find much more meaningful results with a significantly lower client cap per rep.
How does your team shape up against these industry standards? If you’re trending towards each rep managing over $2 million in annual contract value, or over 50 clients, it’s time to think about scaling.
How to Scale Your Customer Success Team
1. Lock Down Your Customer Success Playbook.
Imagine a football team where even just a few players were running the wrong play when the whistle blew. Chaos would ensue. The same goes for your customer success team. Help your scaling efforts by standardizing your process and providing guidelines for every rep to follow. Think about outlining standards for returned call times and steps for handling customer complaints. Having repeatable processes in place will make adding new members to your team a much smoother and successful initiative.
2. Make Documentation Your Strong Game.
Ever sit on the phone with a company where you get passed around explaining your same situation time and time again? It’s exhausting, annoying, and lowers your NPS. To scale successfully your team needs to document client information in a centralized system, and be ready to execute on that data. Keeping records of all interactions in a CRM makes the client transition process between reps seamless, and allows you to scale and add to your team without letting clients fall through the crack. Afterall, your customer is expecting the same level of service no matter who picks up the phone.
3. Leverage Learning Software for Training.
Get your new reps up to speed the instant they join by keeping all of your customer success training online and available. Utilizing a learning software solution, like LearnCore, means your reps can access bite sized training modules from anywhere, learn from SME’s, and have a central authority source for how to handle any situation. Scaling an ineffective team is worse than no scale at all.
4. Measure and Regularly Iterate From Your Results.
Get cozy with your CRM to get a better idea of how your team is doing, and see how your new reps measure up. Start by establishing baselines with your current CRM data, and then report on a regular basis. Comparing your new reps to the rest of the team will give you important insights into the effectiveness of your training program, and help ensure you’ve chosen the right people to scale with. Metrics like number of client touchpoints, amount of revenue generated through upsell and cross sell, and number of customer complaints are a good place to start.
5. Motivate Your Team With Incentives.
A great way to keep your customer success reps motivated, especially within larger teams, is to give them incentives. Cross sell and upsell opportunities represent a huge opportunity for increased revenue, possibly 70-95% of your revenue to be exact, so don’t save the perks just for sales. Building in an incentive structure will not only keep your existing reps excited, it will make it easier to attract top talent when scaling as well.
Want More on Customer Success
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- The Truth About Great Account Managers
- 5 Secrets for Success for Your Account Management Team
- Why Customer Success Teams Should be Trained Like Sales
- Is Account Management the New Sales?
Customer success, when done right, has the ability to be a major profit center. Thinking about scaling your customer success team? Give us a shout: https://learncore.com/request-demo/