CSM Variable Compensation

Justin Voellmann
Justin Voellmann Member Posts: 2 Seeker
Third Anniversary Photogenic
in CS Operations Conversations

Hi GGR community,

I’m looking for some resources and examples of how CSM variable comp can be structured. We have a team NRR target but no levers to upsell at the moment. I’m looking for some questions to get me thinking about how to structure comp around retention to ensure individual CSM portfolios (for 4 CSMs) tie to the team number. Portfolios vary in size (30-50 accounts) and in health. What’s a fair way to take that into account in variable comp planning?

Comments

  • Steven Lewandowski
    Steven Lewandowski Member, CS Leader Posts: 2 Navigator
    Third Anniversary First Comment Photogenic

    Hi Justin,
    We've been quite successful with CSMs having an NRR target for their individual cohort of customers. Depending on the forecasted churn the plan would start at 90/95% and would allow an overachievement if the individual NRR would surpass 100, 105, 110, 115, 120%. This usually works best for a mature CSM team which doesn't need much guidance on what to focus on (in terms of churn prevention, value deliver & expansion) but also should prevent any disagreements with shared commissions between Sales & CSM.

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