Article · 6 min read

Dear SaaStr: How Should Founders Build Their First Customer Success Team?

Jason Lemkin · SaaStr Free Beginner

Direct answers to the timing question: first CS hire in your first 5 to 10 employees, full time once you have two big customers, $1M to $2M ARR per CSM once you scale.

  • Hire your first full-time customer success person once you have two big customers to support.
  • At least one of your first 5 to 10 employees should be a customer success hire.
  • Target each CSM carrying 1 to 2 million dollars of ARR to keep the function economic.
  • Do not hire an SMB-only background if your average contract value is 250,000 dollars or more.

It answers 2 questions

  1. When should I hire my first customer success person?
  2. How do I structure a customer success team once one person is not enough?

Read with it

  1. Chargebee's customer success leader answering an Indian founder's question in the SaaSBoomi community. Eight points, starting... SaaSBoomi Article · 8 min read Best Practices for Setting Customer Success in your SaaS start-up Sri Maneru
  2. Lays out the three real ways to organise a CS team (by segment, by lifecycle stage, by engagement model) and what each one... Gainsight Article · 16 min read Customer Success Team Structure: The Ultimate Guide Gainsight
  3. How to cover a long tail without a named CSM per account, with two working models (strategic plus pooled, and centres of... Gainsight Article · 8 min read Pooled Customer Success Management: The Water's Fine Abigail Spear
  4. The book that defined the function. Worth reading once if you are building the team, mostly for the ten laws and the argument... Wiley Book · 256 pages Customer Success: How Innovative Companies Are Reducing Churn and Growing Recurring Revenue Nick Mehta, Dan Steinman and Lincoln Murphy
  5. Video · 8 min The Earlier, the Better: How Customer Success Compounds Your Growth | @churnzero CCO Alli Tiscornia Alli Tiscornia
  6. Podcast · 54 min Customer Success Programs at Iterable & AutogenAI with Eloise Salisbury Eloise Salisbury
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