2022 Technology Industry Prediction #1: Customer Success organizations to grow faster than sales organizations.

Customer Success has quickly become a cornerstone of a successful recurring XaaS revenue model, and 2022 will bring even more evolution to the function. Alexander Group predicts that companies will continue to expand their Customer Success organizations faster than sales organizations in 2022. As Customer Success organizations mature, roles will specialize to become more focused on revenue generation. Finally, the evolving customer success manager (CSM) role will positively impact core seller job responsibilities in 2022.

Across the large XaaS organizations that Alexander Group surveys every year, on average, customer success manager headcount increased by 46% between FY20 and 21, and that trend is expected to continue into 2022 as well. Historically, Customer Success has focused on driving adoption, but companies are now finding that they can accomplish much more with CSMs if they specialize across the ILAER journey.

As the CSM role will continue to evolve, Alexander Group anticipates more CSMs will drive revenue via growing involvement in renewals, upselling and cross-selling. As more companies invest in CSMs and take on more revenue responsibility, the role of the core seller will be positively impacted by offloading certain tasks and shifting seller focus to high-value activities. Customer Success is becoming a team sport and will be increasingly viewed as a philosophy rather than just a distinct organization or job in 2022.

How will technology organizations capitalize on Customer Success in 2022?

Watch this short video as Alexander Group Analytics Director Davis Giedt talks with Ted Grossman and Rachel Parrinello, Technology principals at Alexander Group, about finding the balance between customer success and team growth.

Stay tuned to learn more about the Alexander Group 2022 Technology industry predictions in upcoming videos.

If you’re interested in learning more about how Alexander Group can help your Customer Success organization, contact the Alexander Group Technology team.


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