The Great Customer Success Identity Crisis

This editorial appeared in the January 16th, 2024, issue of the Topline newsletter.

Want all of the latest go-to-market insights without the wait? Subscribe to Topline and get the full newsletter every Thursday—delivered a week before it hits the blog.

Here’s the thing about Customer Success (CS) that no one wants to admit: even the most successful organisations are struggling when it comes to their CS strategy. Why? Because they’re either stuck in a structure that hasn’t evolved as their company has scaled, or the opposite, they are chasing trends/trying to apply cookie-cutter solutions that don’t fit their unique DNA.

Let’s cut through the noise and figure out what’s really going on and how to fix it.

There’s no shortage of opinions on how to structure CS teams. Some experts swear by merging account management with CS. Others champion splitting roles like onboarding, CSMs, and account managers. And then there’s the digital-only CS crowd touting, “Automation is the future!”

Here’s what my research tells me: About 50% of CS teams still maintain split roles. So much for that big push toward consolidation.

And guess what happens when companies do consolidate? Often, churn goes up. Those “efficient” structures end up costing more in lost revenue than they save in headcount.

Why? Because blending roles without considering team capabilities and customer needs creates gaps. A consultative CSM can’t be expected to seamlessly handle upsells, just as a sales-oriented team member may struggle to manage onboarding or technical issues. Instead of improving efficiency, this creates friction—and your customers feel it.

The takeaway: Don’t blindly follow trends. What works for one company can easily backfire for another.

The Secret to the Best Customer Experience, and Why You Won’t do it.
In Canadian hospitals, they wanted to reduce patient errors that occurred when nurses were tired at the end of their shifts. They experimented with shortening nurses’ shifts from 12 hours to 8, thinking it would reduce errors caused by fatigue. Turns out, the opposite happened. More mistakes were made during handoffs between shifts than when nurses worked longer hours. They went back to 12-hour shifts.

This same principle applies to CS. Ideally, you’d have zero handoffs, but we don’t live in that world. We live in a world where businesses need to scale. And while reducing handoffs sounds great on paper, it’s not always practical. While every handoff risks losing context, damaging relationships, and creating inefficiencies, not handing off at all doesn’t scale either. Your salesperson can’t manage onboarding, renewals, and upsells while still driving new business. The key is finding the balance that works for your specific situation—minimising handoffs without overburdening your team. And more importantly, when you do have a handoff, be disciplined in sharing critical information to create that seamless handoff. Here’s a handoff template you can use. 

The DNA Factor: Building a CS Structure That Fits
Here’s the real secret to building the best CS structure: Your CS team’s DNA and the unique needs of your product or company are far more important than any industry trend. 

Unless you’re starting from scratch, you likely have a team in place that naturally gravitates toward a particular skill set. Are your team members natural sellers? Fantastic. They’re probably well-suited for upsells and renewals. Are they more consultative and service-driven? Forcing them into a sales-focused role could jeopardize performance and lead to missed targets. 

This DNA didn’t happen by chance; it’s a direct result of what your company has prioritized to meet customer needs. Here are a few things to reflect on:

• Does your product demand a hands-on, consultative approach?
• Have you managed to streamline or automate certain stages, making processes less burdensome for your team?
• Are there multiple stakeholders involved?
• Do expansion opportunities call for advanced, complex sales expertise?

On top of that, your CS structure must align with your current growth stage. What worked seamlessly when you had 20 customers could quickly unravel as you scale to 200.

The point is: Let your company’s DNA and customer needs guide your structure at first, then look at the numbers. 

The Math No One Talks About
Everyone loves to talk about how many accounts a CSM can “handle.” But instead of starting with a random number, start with this: How much time does it actually take to serve an account well?

For example, a $100k ACV account, proper coverage looks like this:

• Monthly check-ins: 18 hours/year (prep included)
• Quarterly business reviews: 12 hours/year
• Bi-annual strategic sessions: 14 hours/year
• Ad-hoc meetings, escalations, triggers: 26 hours/year

That’s 70 hours per account, per year (after internal meetings, admin work, and other responsibilities). With 1,400 productive hours annually, a single CSM can handle around 20 accounts effectively. Push that number higher, and here’s what happens:

1. CSMs get stretched too thin.
2. They go from proactive to reactive.
3. Expansion opportunities are missed.
4. Customer satisfaction plummets.
5. Churn goes up—and the impact compounds year after year.

The result? Millions in lost revenue because someone tried to save a few thousand on CS headcount.

Making the Right Choices for Your Company
Here’s the deal: there’s no magic recipe for Customer Success; however, there are some rock-solid principles you can follow to guide a CS strategy that actually works for your business.

1. Understand Your Current State

• Map the customer journey: Identify what’s actually happening, not just what’s supposed to happen.
• Analyze successful customers: What made them successful, and how can you replicate it?
• Learn from churn: Focus on churned customers who fit your ideal customer profile (ICP) and whose churn was preventable. Identify why they left and what could have been done differently.

2. Define Success

• Moments that matter: Identify the key moments in the customer journey where your product creates undeniable value.
• Segment wisely: Tailor these moments for each customer segment, setting clear metrics to track success.
• Allocate resources strategically: Accept higher churn in lower-revenue tiers if it allows you to focus more resources on high-value customers.

3. Check Your Resources

• Be realistic about capacity: Ensure you have enough CSMs to meet customer needs and revenue targets.
• Assess your systems: If automation or tech-touch isn’t ready, compensate with people power until it is.
• Skill up your team: Make sure your team has the training to deliver on their objectives effectively.
  
  

Charting Your CS Destiny
The future of Customer Success isn’t about chasing the latest trend or mimicking the biggest players. It’s about understanding your unique situation and crafting a CS function that meets your customers’ needs while driving business growth.

If you’re thinking, “We’ll just make it work,” stop right there. Nothing derails a CS team faster than taking on more than they can handle. 

Your CS structure isn’t set in stone, and a one-size-fits-all approach simply won’t work. As your company grows and evolves, your CS needs will shift too. The key is to remain flexible and focus on what truly drives customer impact, rather than following what others are doing.

In my research and consulting experience, the most successful CS organizations are the ones that aren’t afraid to challenge the status quo and tailor their approach to their specific situation. They understand that Customer Success isn’t just about avoiding churn—it’s about fostering growth through repeatable, impactful customer experiences.

So, the next time someone tells you there’s only one way to do Customer Success, remember this: the right CS strategy is the one that reflects your company’s DNA, addresses your customers’ needs, and fuels sustainable growth. Everything else is just noise.

Julie Persofsky is currently the CEO and Founder of Achieve Exponential Growth; previously, she led the Customer Success practice at Winning by Design. 

As a seasoned revenue strategist, Julie helps companies simplify their Go-to-Market strategies and drive Customer-Led Growth. She offers strategic advisory services, GTM assessments, process design, coaching, and dynamic workshops focused on CS and Sales. She also recently launched Unlock Customer Revenue, a training program designed to teach Customer Success professionals critical yet overlooked skills of how to sell to existing customers. Topline readers can get a discount of 15% with code TOPLINE.