onlycfo.io · 2023-11-01
· 946d
Do Customer Success Teams Add Value?
The article argues that Customer Success teams are critical for SaaS company value creation, particularly through their impact on Net Revenue Retention (NRR), which correlates strongly with enterprise valuation multiples. While NRR is influenced by multiple business factors beyond just retention, well-executed Customer Success functions serve as extensions of founder vision and can materially impact Go-to-market strategy execution and customer lifetime value.
Metrics in this report
Chief Customer Officer Reporting to CEO
17percent
average
All SaaS companies surveyed
Chief Customer Officer Reporting to CEO
28percent
average
SaaS companies with $50M-$249M ARR (2023)
Enterprise Value Multiple
18x revenue
top-quartile
SaaS companies with ~150% NRR (Snowflake)
Enterprise Value Multiple
2-3x revenue
bottom-quartile
SaaS companies with ~103% NRR
Net Revenue Retention
150percent
best-in-class
Snowflake, highest-valued public SaaS companies