Sasha Anderson, Global Head of Customer Success at Canva, shares her expertise in customer success management. She discusses the evolving role of CSMs, debating the balance between commercial and technical focus based on product complexity. Sasha emphasizes the significance of customer value in consumption-based models and the need for alignment between sales and CS teams. The challenges of specialization within CSMs and strategies for building a high-performance culture are also highlighted, making this a treasure trove of insights for leaders in the field.
The role of Customer Success Managers (CSMs) is evolving to balance commercial and technical focuses based on product complexity and pricing models.
In consumption-based models, CSMs must leverage real-time data to drive customer value and proactively respond to usage patterns.
Collaboration between sales and CSM teams is essential for achieving revenue goals, requiring aligned metrics and a unified approach to customer engagement.
Deep dives
The Evolution of Customer Success Management
Customer Success Management (CSM) is evolving to require either a commercial or technical focus, depending on the product's complexity and business model. For products with straightforward pricing models, CSMs may take on more responsibilities post-renewal, driving value for the customer. However, as products become more complex, a technical focus becomes essential, particularly in consumption-based models, where understanding product usage is critical. The shift in CSM roles reflects the need for greater expertise to ensure that customers are effectively utilizing the tools they’ve purchased.
Data Utilization in Consumption Models
In consumption pricing models, the approach to data usage becomes increasingly nuanced, as revenue is tied directly to customer product usage rather than contractual renewals. CSMs need to leverage real-time data to gauge customer health and product efficacy, necessitating a deeper understanding of both the data and the product itself. Managing consumption-based products means CSMs must be proactive in analyzing usage data to provide actionable insights, emphasizing the importance of strong technical skills. This shift indicates a growing reliance on data analytics within customer success strategies.
Aligning Customer Success with Revenue Goals
A pivotal change in the perception of CSMs is that they are increasingly viewed as integral to driving revenue, rather than merely a support function. Leadership plays a crucial role in framing CSM contributions in terms that resonate with other executives, particularly focusing on metrics that matter such as net dollar retention and expansion rates. CSMs are now expected to not only maintain customer relationships but also to actively contribute to revenue goals through retention and upselling strategies. This acknowledgment of their role as a revenue driver necessitates that CSM performance metrics align with broader organizational goals.
Importance of Collaboration Between Sales and Customer Success
The relationship between sales teams and CSMs must be built on collaboration and mutual accountability to enhance overall business performance. Leadership should work to align compensation structures and performance metrics between both teams to mitigate the potential for conflict over headcount and resource allocation. Regular cross-team reviews and shared goals can foster a unified approach to customer engagement, where both sales and CSM teams are working toward a common objective rather than competing for resources. Establishing this cooperative dynamic helps in addressing misalignments, improving customer experiences, and driving revenue growth.
The Future of Customer Success at Canva
Sasha Anderson’s transition to Canva as the global head of customer success signals a strategic shift towards empowering organizations rather than just individual users. Canva aims to enhance its market presence significantly by doubling down on its organizational offerings, striving to be a market leader in design empowerment. This next phase will require strategic implementation and innovation in customer success practices as the company scales. Anderson’s role will be crucial in developing strategies that align with this vision, emphasizing the importance of strong customer relationships and value creation in driving organizational success.
In this episode, John Kaplan and John McMahon are joined by Sasha Anderson, Global Head of Customer Success at Canva and customer success management (CSM) expert to explore the evolving role of CSMs in sales organizations. The discussion covers whether CSMs should be more commercially focused or technical, based on product complexity and pricing models. Sasha emphasizes the importance of driving customer value and usage, especially in consumption-based models where revenue is tied to product usage. The conversation also delves into the challenges of specialization, the need for alignment between sales and CS teams, and the importance of performance metrics and operating rhythms. Practical advice is provided on building a high-performance culture within CSM organizations. This episode is a must-listen for leaders aiming to optimize their customer success strategies.
Tune in and learn more on this episode of The Revenue Builders Podcast.
[00:00:43] The Evolution of the CSM Role [00:01:32] Commercial vs. Technical Focus for CSMs [00:02:22] Impact of Consumption-Based Models [00:04:30] Challenges and Strategies in CSM [00:08:47] The Shift from Customer Support to Business Partner[00:11:13] Aligning CS with Revenue Goals [00:16:55] Building Strong Relationships Between CS and Sales [00:19:42] The Importance of Customer Engagement Models [00:28:58] Aligning Sales and Customer Success [00:31:18] The Importance of Specialization [00:31:55] Pros and Cons of Specialization [00:34:52] When to Consider Specialization [00:38:11] Performance Management in Customer Success [00:46:51] Building a High-Performance Culture [00:48:55] Operating Cadence in Customer Success
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HIGHLIGHT QUOTES
[00:28:47] "Tight handoffs are so important...if you don't understand that there's a competitor sitting right there that understands it and they're willing to take advantage of that opportunity." [00:49:21] "The whole point of the operating cadence is a couple different things: everyone should know what's expected on them on what cadence too." [00:52:12] "If you want one of these roles in CS, in today's environment, you better know how to communicate up." [00:53:28] "As a CS leader, you're responsible for owning the narrative with your C suite, with your customers, with your board about what's happening in the business. And if you don't own the narrative, somebody else is going to own it for you."
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