Jun 26 2024 26 mins
ON TODAY'S EPISODE:
Setting up a variable compensation plan for Customer Success Managers (CSMs) is fraught with challenges. In this week's episode of Impact Weekly, Johan and Lincoln dive deep into the intricacies of variable comp plans. They discuss the potential pitfalls, share effective strategies, and emphasize the irreplaceable role of leadership in motivating CSMs.
THIS WEEK'S QUESTION: "What's the best approach for a variable comp plan for a Customer Success Manager?"
TOPICS BEING ADDRESSED:
- The challenges and pitfalls of variable compensation plans in Customer Success.
- Effective ways to structure incentives for Customer Success Managers.
- The importance of leadership and management in motivating and guiding Customer Success teams.
QUOTES:
- Johan Nilsson (00:01:22): "Anyone out there who's been trying to set this up knows it is and can be a challenge. And there's many ins and outs to this one."
- Lincoln Murphy (00:05:35): "In Customer Success Management, variable comp often means, 'I'm going to pay you 70 percent of your salary, and you better do your job or you're not going to get the other 30 percent.'"
- Lincoln Murphy (00:07:1`): "In Customer Success, variable comp is generally positioned as a threat. It only has downside potential."
- Johan Nilsson (00:10:42): "I've seen variable comp plans that incentivize CSMs to only work and maybe even push upgrades on customers that aren't ready, while ignoring those who need more attention."
- Lincoln Murphy (00:15:12): "You pay them their market rate salary and you can bonus them on other stuff. That's called being a manager. That's called being a leader."
Do you want more of this? Check out Impact Academy for interactive Customer Success training programs. https://www.impactdemy.com/
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