2022 CS Trends: From Salaries to Scaling Teams

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We explored some of the latest industry trends in our earlier newsletter, Did you catch our 2022 Customer Success Industry & Salary Report? Now, we’re back with a focus on what’s next in building your career, team, and compensation!

The 2022 CS Trends: From Salaries to Scaling Teams webinar was informed by our 9th annual report, which featured insights from respondents across 49 industries and 41 countries, and guided by direct insights from CS thought leaders like Totango CMO Karen Budell; Katie Rich, VP of Customer Operations; Robyn Fernandez, Sr. Director of CS; and Katie Yagodnik, Director of CS Operations & Digital Programs.

As the report revealed, companies in almost all industries are facing hiring challenges at the moment. We’re dealing with recovery from COVID-19, 40-year high inflation, a cost of living crisis, and a tight labor market. Many people have been evaluating their work-life balance and seeking employment that better aligns with their values.?

Despite these challenges, customer success jobs are growing in popularity and demand. More professionals are looking to enter the CS field, and CS teams are growing in scale.?

Employees want to be sure they’re being paid in line with industry norms, and employers like to know that their offer is just right: not too low, not too high. We found a wide range of salaries, anywhere from $48,500 entry-level salaries to executive salaries of $250,000. And there’s room for growth! 61% of CS employees report higher annual compensation compared to 2021, while only 23% report no change. Now let’s take a deeper look at compensation trends.

Breaking down compensation packages

• 60% receive base salary and a bonus (down from 68% from last year)
• 39% receive stock or equity (comparable with last year at 37%)
• 25% receive base salary, bonus, and equity?

This tells us that earnings are closely tied to company goals, and companies are incentivizing professionals to increase company performance with their offers. Compensation connects directly to the customer, because when the customer is happy, the company receives more revenue, and when the company receives more revenue, CS professionals benefit as well.?

While customer success may mean different things to different organizations, it’s evident that the value is becoming more clearly understood, as many businesses are incentivizing growth and development:

• 14% of respondents said their bonuses depend entirely on onboarding measures
• 20% of surveyed professionals said up to half of their bonus depends on overall team and company performance
• Up to 15% of people surveyed said upsells and expansion impacts their bonus schemes

Examining salaries by role

We’re learning that CS provides a structured career path for professionals to develop their skills and progress to roles with higher annual salaries, and salaries are expected to grow, both due to high demand and with more companies placing importance on net revenue.

Customer Success Manager

• 2021 Salary Range: $48,500 - $170,000 (median: $94,000)
• 2022 Salary Range: $50,000 - $200,000 (median: $89,500)

Customer Success Operations

• 2021 Salary Range: $70,000 - $90,000 (median: $80,000)
• 2022 Salary Range: $54,000 - $225,000 (median: $110,000)

With more and more businesses leaning into their customers and investing in customer success, there was a 29% increase in median salary for Customer Success Operations, with the salary range more than doubling.?

A caveat: this is a maturing role, and some of these changes in range may reflect the different level of seniority in our respondents.

Director of Customer Success

• 2021 Salary Range: $52,000 - $250,000 (median: $150,000)
• 2022 Salary Range: $52,000 - $240,000 (median: $130,000)

This decrease in salary from 2021 is the opposite of the trend we’ve been seeing over the last couple of years. This could be in response to more remote workers with hiring in different locations that could be affecting what the median might be.

As we look at the Head of Customer Success, we’re also seeing a decrease in median income.

Head of Customer Success

• 2021 Salary Range: $70,000 - $280,000 (median: $130,000)
• 2022 Salary Range: $70,000 - $250,000 (median: $110,000)

The Head of Customer Success may also be referred to as Chief Customer Officer. This role establishes overall direction and strategic initiatives for the given major function or the line of business.?

VP of Customer Success

• 2021 Salary Range: $130,000 - $300,000 (median: $200,000)
• 2022 Salary Range: $135,000 - $240,000 (median: $195,000)

The sample size here was much smaller than the other roles, but there has been a continuing rise in salary. In 2021, 58% of respondents reported making more than $175,000, and this year, 70% reported more than $175,000.?

We just looked at 5 roles here, but companies need a wide range of talent.?

Many CS departments are seeking growth in the years ahead

But what are the hiring challenges?

Top hiring challenges in the CS industry

• 1 - 10% employee turnover in the last 12 months reported by a majority of respondents
• 32% of CS professionals surveyed said offering competitive salaries was a significant challenge
• 42% of respondents said hiring experienced CS professionals was a moderate challenge
• 44% said hiring industry-experienced professionals was a moderate challenge

Additionally, with 54% of CS teams working hybrid, 38% working entirely remote, and only 8% working in the office, integrated and easy-to-use software is a must-have for this evolution in the world of work. People need the flexibility to work remotely some (if not all) of the time, and being able to deliver a seamless working experience from their home or office will help retain talent.

What can candidates do to boost their attractiveness to employers??

How can early career professionals and graduates break into the industry? What should CS experts consider when making their next move? What should CS experts look for in new roles?

Here are our top tips to launch your career in customer success:

• Play to your strengths. Match your existing expertise with companies operating in specific domains.
• Build a network. Reach out to experienced professionals for support and advice; being proactive can help you find exciting opportunities.
• Do your research. Make sure customer success is right for you; explore the different roles and responsibilities in the industry.
• Look for shared values. Maximize your job satisfaction by applying for companies that share your values and ethics.

Want to learn the latest CS industry trends??

You can catch the full 2022 CS Trends: From Salaries to Scaling Teams webinar here !

Want more tips for Navigating Your Customer Success Career Path? Check out the webinar here .

Our SuccessBLOC bundle can provide you with all of the information you need to drive customer growth. Ready to take the next step in retaining your customer base? Use our Invest in CS SuccessBLOC bundle to engage customers, detect risk, and analyze customer health.

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