CSP S3 E14 - Mike Sabat Twilio - The Merger of CSM and AE

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Summary

In this thought-provoking discussion, Mike Sabat from Twilio shares his perspective on the potential convergence of Customer Success Management (CSM) and Account Executive (AE) roles in enterprise technology. The conversation delves into how consumption-based pricing models and increasing product complexity are driving this transformation, with particular emphasis on revenue responsibility and customer relationship management in the modern tech landscape.

Detailed Analysis

The episode explores the shifting dynamics of customer-facing roles in enterprise technology, highlighting several key trends and implications:

Consumption-Based Evolution

The discussion begins with an examination of how enterprise software is moving from seat-based to consumption-based pricing models, similar to those employed by major players like AWS, Google Cloud, and OpenAI. This fundamental shift is reshaping how companies structure their customer-facing teams and responsibilities.

Role Convergence Drivers

Sabat presents compelling arguments for the merger of CSM and AE roles, particularly in growth-oriented companies. The traditional model of AEs making promises and CSMs cleaning up afterward is becoming obsolete, replaced by a more integrated approach where responsibility for both sales and delivery rests with the same individual.

Revenue Responsibility

A crucial point emerged regarding revenue responsibility in customer success roles. The panel agrees that CSM teams must evolve beyond being cost centers to become revenue generators, either through direct sales responsibility or through packaged services offerings.

Specialized Models

The discussion acknowledges that while convergence is likely in some areas, specialization will continue to exist. The "hunter" role focused on new logo acquisition will remain distinct, while the "farmer" role may see the most convergence between AE and CSM functions.

Future Implications

The conversation concludes with insights into how this evolution might affect organizational structure, skill requirements, and customer relationship management in the coming years, particularly in enterprises with complex, consumption-based products.

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