Customer Success Manager Salary Guide For 2023 | Does Location Impact Salary?

A GUIDE TO CUSTOMER SUCCESS MANAGER (CSM) SALARIES IN THE TECH INDUSTRY AND THE FACTORS THAT AFFECT THEM

(ALL FIGURES ARECURRENT AS OF JANUARY 27, 2023)

A Fast-Growing Opportunity

Tech sales is a people-first kind of field – after all, without customers, there is no product or service to sell in the first place. Customer Success Managers play a (if not the) key role in making those customers feel welcomed, understood and ultimately better off as a result of their purchase.

The CSM role is one of 2023’s fast-growing jobs with incredible potential as tech businesses seek to bolster new technologies with strong people skills to complement and support them. As we publish this report, we have over 43,000 Customer Success sales jobs listed on our job board.

And with the global software-as-a-service industry poised to reach over US $700 billion by 2030, we expect opportunities for these kinds of roles to continue expanding.

That’s great news for demand… but what about salary? Is becoming a CSM the right move for you? What factors most influence your earning potential? And where might it lead you in the future?

Read on… and find out!

There’s a high demand, but does the salary match? What factors most influence a CSM’s learning potential? And where might a management position lead you in the future? Let's dig in.

A Day in The Life

A Customer Success Manager is a front-line mid-level contributor who bridges the gap between sales and traditional customer service.

As a CSM, you’re the point of contact for multiple customers. You help them navigate the sales process, learn more about your product or service, onboard after purchase, and stay engaged throughout their customer lifecycle.

You build and maintain a deeper relationship between customers and the company, boosting satisfaction, retention, and brand loyalty. You also pinpoint the key moments for cross-selling and upsell opportunities.

In this position, you can also become the default contact when things go wrong. In times like this, conflicting resolution and problem-solving skills come in handy for any successful CSM.

Grab This Guide To Go!

During a typical day, you may find yourself…

• Creating a customer success plan
• Educating customers on how to use your product most effectively
• Identifying the right moments to promote additional products or services
• Resolving customer problems as they arise
• Checking in with your customers regularly and proactively

Think of a CSM as a trusted mentor or a guide who makes sure customers have a voice and makes it easier for them to get where they’re going.

Most CSMs have 2 to 7 years of experience in sales or customer service under their belts. More than 3/4 of people in this role also hold a Bachelor’s Degree which is interesting because having a degree isn't a 'must-have' for this position at most companies.

6 Must-Have CSM Skills

Set yourself up for CSM success by building skills like…

1. Communication
2. Instruction
3. Organization
4. Mediation
5. Mentorship
6. Collaboration

Breaking Down The Averages

The average salary for a Customer Success Manager ranges between US$66,760 to US$79,625 in the U.S. and between C$62,287 and C$69,228 in Canada.

Similar to other sales roles we’ve researched, CSMs report a wide range in their annual salary – to the point where top earners more than double what low-earners make in a year. The lowest reported salaries in the U.S. sit at around US$50,000, while the most lucrative positions tally well into the six-figures at US$123,000. Their Canadian counterparts can expect between C$47,000 to C$98,000.

Additional forms of compensation, such as bonuses and commissions, are common in CSM roles – more on how that works later in this guide. But in terms of dollars and cents, Glassdoor reports additional cash compensation in the U.S. at US$13,332 and in Canada at C$10,479.

These salary numbers span many locations and levels of experience, giving us a great place to dive into a more detailed discussion about CSMs in tech companies in particular – and the factors that most influence salary success within that field.

What Factors Affect CSM Salaries?

The exact salary you earn as a CSM depends on a variety of factors, ranging from market demand to individual company practices. That said, three general influencers can have a big impact on your paycheck.

Tech-focused skills

The majority of CSM opportunities are within tech companies – about 40 percent of high-tech companies have this role among their ranks. A recent LinkedIn report also found that 72 percent of CSM professionals worked in the software and IT industry.

Top hiring industries for this role include computer software, internet, information technology and services, marketing and advertising and financial services.

By definition, skills like business development, consulting, customer satisfaction and relationship management are must-haves on the job. But given the skew in demand for CSMs within the tech industry, it’s no surprise to see a mix of other tech-related skills directly impact salaries:

• Enterprise solutions: ↑ 72%
• Strategy: ↑ 66%
• Cloud computing: ↑ 27%
• Technical analysis: ↑ 12%

Want to build your essential CSM skills? Uvaro’s Customer Success Management Course helps you prepare for an exciting career as a Customer Success professional!

Experience

The salary difference between an entry-level CSM with 1 to 3 years of experience can be as much as $50,190 lower than what a senior-level CSM makes after 8 years on the job, estimates Salary Expert. By their calculations, the salary potential for CSMs increase around 21 percent over 5 years.
What does that increase look like in more detail? Data from Payscale suggests that the greatest growth occurs within the first 10 years of a CSM career, with a $12,000 increase between years 1-4 and years 5-9.

Location

The cost of living varies city by city, as does the cost of doing business. So it’s no surprise that there are geographical differences in average salaries for Customer Success Managers.

Does Remote Work Pay Off?

Goodbye, traditional office job – so say 94 percent of U.S. employees with remote-capable jobs who prefer a fully remote or hybrid workplace setup.

People who shifted to at-home work report more flexibility in how they spend their time, decreased costs associated with commuting and meals, better focus during the workday and more excitement about their jobs.

Companies noticed a productivity boost too, with 68 percent of enterprises saying they believe employees do more in a day. Never mind the decline in attrition rates, as employees enjoyed a quieter environment to get their work done.

The big question, though: does that boost in productivity correlate to a boost in salary for tech sales positions? According to a recent Payscale report:

• Hybrid workers earn more on average. Employees who work from home 100 percent of the time earn more than those who work fully in-office. Hybrid workers out-earn both groups.

• Tech favors the remote. Fully remote employees across the tech industry earn 5.5 percent more than their in-office colleagues, after considering compensable factors (e.g. job title and location). Tech companies were also the most likely to report adopting a flexible or hybrid office post-pandemic.

• Sales favors remote, too. Sales jobs are uniquely well suited for remote work, and it shows in the numbers. Measuring by occupation, fully remote sales workers were higher earners, taking home 6.5 percent more than their in-office counterparts.

Interestingly, salaries for Customer Success Manager (Remote)” are about 10 percent lower than those for Customer Success Manager” according to Glassdoor. That said, not every remote or hybrid role is marked as such in the job title, so take this note with a grain of salt.

Commissions, and Bonuses, and Benefits (Oh My!)

Similar to other sales roles, CSMs typically enjoy a mix of compensation sources, from their base annual salary to commissions earned on cross-sells and upsells.

Because CSMs are focused on building and maintaining relationships rather than making one-time sales, however, their compensation structure will likely look different than other roles on the sales team.

Three common approaches impacting a Customer Success Manager salary include:

• Base only: A Customer Success Manager salary is usually consistent throughout the year. They may receive raises when they meet performance metrics or milestones.
• Base + bonus: CSMs earn a base salary with the opportunity for additional structured bonuses as they meet the objectives in their role (for example, customer satisfaction scores or renewals)
• Base + variable: A portion of the CSM salary is fixed with the remaining payout captured by performance toward a few important KPIs, similar to a commission. A typical fixed-to-variable split may look like 70:30 or 80:20.

Hiring companies also commonly offer benefits to CSMs, with 92 percent of U.S. employees in the role reporting they receive benefits in at least one form. A more detailed breakdown on Payscale reports that CSMs receive:

• Medical benefits: 91%
• Dental benefits: 86%
• Vision benefits: 80%

Ready To Make Your CSM Dreams Come True?

Uvaro’s mission isn’t to help you find a job. It’s to help you find a fulfilling career in tech from hired to retired! We’re there as you launch into your new life, and are there to support, encourage and guide you as it transforms to ensure you succeed on your terms.

Our 4-week Customer Success Management Course will teach you all about the unique and evolving role of a Customer Success Manager and prepare you to take your place as a Customer Success professional.

You will learn how to apply the specific communication, instructional, organizational, and mediating skills required to succeed - and will practice techniques needed to mentor, support, and grow the success of both your customers and your organization.

Take charge of your career and take the next step with Uvaro today!