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.

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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