Why Cost-Cutting in Customer Marketing and Success Hurts Long-Term Profitability

Let’s be blunt: budgets for customer-facing roles and programs are often the first to face the chopping block. Marketing and CS departments are especially no stranger to balancing cost-cutting pressures with the imperative to drive growth. However, these roles, often perceived as “non revenue-generating”, are actually critical to maintaining strong customer relationships, driving renewals, and fueling long-term revenue growth. Here's why underfunding or under-prioritizing them is short-sighted, and what to do instead.

The Cost of Underinvesting in Customer-Facing Roles

As a cost-cutting measure, companies often assign junior-level staff to oversee critical customer initiatives. While these employees may have potential, they often lack the clout or confidence to engage with senior leaders across the company. Consider this scenario: an "Ask me Anything" quarterly meeting between selected customers and the VP of product would significantly improve customer engagement and loyalty, but it’s not something a junior employee would typically be comfortable asking for (or even think to do). The VP, engaged in their own world and set of KPIs, is unlikely to volunteer their time unless specifically asked to do so. Rinse and repeat with the functional leaders of Customer Success, Sales and Product, whose participation in community activities are critical to the community’s success, but are unaware of their needed contributions. Their insight into the successes or challenges of these customer facing programs (like community or customer advocacy) is similarly limited if the junior staffer doesn't proactively schedule time with them or present at cross-functional department meetings.

The result? Kept within a functional silo, these customer-facing programs often stall or fail altogether, leaving customers feeling disengaged, under-supported, and more likely to churn.?

Another glaring example comes from Influitive, a leader in customer advocacy software? that decided to replace its customer success team with an AI chatbot to cut costs. What seemed like an innovative, cost-saving solution quickly backfired. Customers—especially those with more complex needs—became frustrated with the lack of human interaction. Many left the platform, and Influitive had to outsource customer success to an agency just months later to repair the damage. The cost to fix the mistake likely far exceeded what the company saved in the short term–and that’s just the financials. The damage to the company’s reputation may never recover.

The Ripple Effects of Neglecting Customer Success

Cost-cutting measures in customer-facing roles may seem like a quick fix, but the long-term consequences are devastating. Here are a few more examples:

1. Downgrading Customer Success Teams Some companies choose to reduce the number of senior customer success managers, assuming that junior or mid-level staff can handle customer relationships just as well. However, senior CSMs often have the strategic insight, industry knowledge, and established customer relationships that are crucial for renewing contracts, identifying upsell opportunities, and driving referrals. Downgrading these roles not only reduces customer satisfaction but also stifles potential revenue growth from existing customers.?
2. Cutting Customer Marketing Initiatives Customer advocacy programs, loyalty rewards, and community engagement events are often the first to go during budget cuts. These initiatives, however, are what keep your customers engaged and invested in your brand. When Adobe moved away from customer-centric events during a previous budget squeeze, they quickly realized that customer loyalty took a hit, and competitor solutions started gaining ground. The company eventually reversed course, investing heavily in its customer marketing function, leading to stronger renewal rates and higher customer lifetime value (CLTV).

What To Do Instead: Invest, Don’t Cut

Customer success and marketing aren’t cost centers—they are profit centers when managed well. Rather than slashing budgets, here’s what you should be doing:

1. Invest in Senior Talent Customer-facing roles are too important to leave to junior staff. Senior customer success, CMA and community managers have the experience and authority to work cross-functionally within the organization, helping to break down silos and align everyone on delivering customer value. Top talent will not only manage renewals but will proactively identify opportunities for upselling, cross-selling, and driving customer referrals. If a FTE is not feasible due to budget constraints, at least consider bringing in a knowledgeable consultant to help build out a program strategy that the junior employees can execute on.
2. Leverage Technology Thoughtfully While AI and automation can certainly streamline customer interactions, they should augment, not replace, human teams—especially for high-touch customers with complex needs. Instead of cutting out your CS team, use AI to handle routine inquiries and free up your best people to focus on strategic initiatives that deepen customer relationships.
3. Prioritize Customer Advocacy and Community Building Now more than ever, customers crave authentic, value-driven interactions with brands. Doubling down on customer marketing through loyalty programs, advocacy initiatives, and community engagement fosters brand loyalty and drives organic growth. Rather than cutting these programs, find creative ways to enhance them, possibly with the support of cross-functional teams–and hold common KPIs across these functions so everyone is held to some extent accountable for program success.

Short-Term Cost-Cutting = Long-Term Revenue Loss

We know that one of the top missions of any SaaS leader? is to drive sustainable growth. Short-term cost-cutting in customer marketing and success may temporarily appease budget concerns, but it will damage customer relationships and hurt revenue in the long run. By investing in senior talent, leveraging technology wisely, and prioritizing customer engagement, you can turn these customer-facing roles into engines for renewals, upsell, cross-sell, and referrals—fueling long-term growth and profitability.

Customer-facing roles aren't just a cost—they are an investment in your company’s future. The real question isn't whether you can afford to invest in them, but whether you can afford not to.