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Survey Insights
The Charters of Customer Success in Managed Services Are Shifting
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April 1, 2025
Overview
Challenges
This survey insight underscores how the role of customer success within managed services is evolving, and highlights a critical shift from adoption-focused strategies to prioritizing retention and expansion.
Summary
The survey insight underscores the critical importance of establishing a dedicated customer success function within managed service providers (MSPs). Results reveal that companies with such teams experience significant boosts in recurring revenue, retention, and expansion. However, a shift towards prioritizing retention and expansion over adoption poses potential risks, indicating that balance is essential for optimal customer success outcomes.
Included in the full report
Benefits of Dedicated Customer Success Teams:
MSPs with dedicated teams show dramatically higher recurring revenue, base expansion, and revenue retention rates.
Shifting Focus to Retention and Expansion:
There is a pronounced shift in MSP charters from adoption to prioritizing retention and expansion, which could negatively affect customer experiences if adoption is neglected.
Ownership of Customer Success Metrics:
Companies that place retention responsibility with customer success achieve better revenue retention, while sales focus drives recurring revenue growth.
Emerging Practices Affecting Expansion Rates:
Customer success ownership of expansion has been linked to lower base expansion rates, suggesting a need for development in this area.
Need for Balanced Charter Focus:
To maximize effectiveness, MSPs must establish robust adoption processes before shifting toward retention and expansion initiatives.
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