Customer Success: Investment Thesis

CSM Software helps in

  • Tracking Product usage & Adoption Rate
  • Create Customer health score, a single metric to measure account health, using Product usage data, Support tickets, Survey Results, Invoice history, email/slack communication and marketing engagement
  • Helps in creating a bird eye view of customer lifecycle
  • Helps CS Manager in deciding either to Fight Churn & Upsell
  • Workflow Automation & Timely Alerts.

Need of Customer Success has grown in lockstep with Tailwind in SaaS

  1. Shift from Ownership to Subscription based economy, easier to cancel software anytime
  2. Big Ticket Customers; LTV/CAC: 5:1
  3. Increased access to Customer Data and Product Usage
  4. Go to Market strategy of startups ‘Land & Expand’ and ‘Product led growth’
  5. Number of accounts a CSM Handles has increased. For example IBM has 1K CS Managers
  6. CAC is 5–25 times more expensive than retaining new customers
  7. Probability of selling to an existing customer is 14x higher than to a new customer.

Total Addressable Market

Target Market for CS Softwares/Tools

  1. They have less accounts to manage.
  2. More over a tech stack of Slack+Zendesk+Google works well for SMB players.
  3. Lack of Sophisticated data to churn for CS Tool

CS Tech Stack & Market Map

Large Enterprise continue to tilt towards Building CS Tool vs Buying it

1.0 Wave of CS Software

2.0 Wave of CS Tech Software

3.0 Wave of CS Tech Software



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Shivi Maheshwari

Shivi Maheshwari

VC at WaterBridge Ventures | MBA at Kellogg