Do you think customer success should report into sales or be an entirely separate function?
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Adding to that, the real debate might not be just about whether CS should be under sales, but rather where it aligns best within the organization. Should it be under operations or support? The key issue seems to be alignment rather than reporting structure. Companies should focus on improving alignment across teams, rather than solely on where CS reports. If we question whether CS should report to sales, we could similarly question if product development should align with sales to create features for them. The emphasis should be on enhancing team alignment to achieve company goals.
It really depends on the responsibilities outlined for the customer success team. If the team is responsible for tasks like upselling, then aligning with sales might make sense. However, if their duties differ, the reporting structure might also need to be different. Ultimately, it boils down to the specific responsibilities of the CS team.
I agree. For instance, my CS team handles onboarding, post-go-live support, and upsells and renewals. Since revenue isn't recognized until onboarding is complete, there should be a closer collaboration with sales to ensure a smooth transition from signed contracts to active users. This setup might require a different compensation model for those handling upsells. It's crucial to tailor the structure to the business's specific needs rather than applying a generic approach.
Into sales, but I’m sure there are exceptions to the rule. I’d add product upselling, user expansion, and retention. All are revenue impacting and should be managed accordingly. The hard part for most sales organizations is putting the customer first in this process.
I am not aware of the difference. Thinking CRM user centric, the reporting should remain easy to use and avoid miss-interpretations - K.I.S.S.!
Whilst organisational design is clearly important, I prefer to think about the activities that customer success (and related functions) perform, the skills and competencies required to fulfil those activities (people and technology) and the desired outcomes/goals. That will then inform the reporting-line outcome/recommendation.
Absolutely. In more transactional businesses or with mature products, the focus might be more on account management and growth, which aligns more closely with sales. However, many sales leaders may not fully understand the nuances of customer success, which exists to bridge the gap between promised and delivered outcomes. While it's important to align closely with sales, simply placing CS under sales doesn't automatically resolve alignment issues. Shared metrics across teams could foster better collaboration and accountability, ensuring that sales and CS work towards compatible goals.