CSM Jargon Handbook – 15 commonly used terms

One of the first things you might notice when you’re moving from teaching to Customer Success is the language and jargon used can be quite specific and inaccessible to those who have little or no background in tech or Customer Success.

Here is a list of 15 commonly used terms you will most definitely come across if you work as a CSM for a SaaS company. I had to learn many of these terms from scratch, either by frantically googling the terms, or clarifying them with my very patient managers and colleagues!

1. ARR (Annual Recurring Revenue) ARR is the total yearly revenue generated from subscription-based customers. Suppose your company has 100 customers paying $1,000 annually; your ARR is $100,000.
2. QBR (Quarterly Business Review) A QBR is a strategic meeting where you assess your client’s progress, discuss achievements, and identify areas for improvement. For instance, you might conduct a QBR with a client to review their product usage, discuss their goals, and plan for the upcoming quarter.
3. Upsell Upselling is encouraging customers to purchase a more advanced or premium version of a product they already have. Think of a streaming service suggesting an upgrade from the basic plan to the premium plan for more features, or if an ed-tech software provider is requested to provide services to an increased number of students.
4. Cross-Sell Cross-selling involves offering additional products or services to existing customers. Imagine a software company suggesting a security add-on to a client who already uses their primary software.
5. Downsell Downselling is the practice of offering a less expensive product or service to a customer who may not be ready for a higher-tier option. It may also refer to a decrease in the subscription cost paid due to a drop in the number of users. While downselling will impact ARR, it helps maintain the customer relationship while meeting their needs and budget.
6. Churn Churn represents the rate at which customers stop using a product or service. For example, if 10 out of 100 customers cancel their subscriptions, your churn rate is 10%. It is important to take churn-mitigation measures, as high levels of churn will cause significant loss in revenue and profit.
7. CRM (Customer Relationship Management) A CRM is software used to manage interactions and relationships with customers. It helps track customer data, communication history, and upcoming tasks. Companies use CRMs to enhance customer engagement. Salesforce is a commonly-used CRM.
8. CSAT (Customer Satisfaction Score) Customer satisfaction (CSAT) is a metric that measures how contented customers are with your product or service. This can be either a short or longterm metric. Generally, it is assessed through surveys by asking customers to rate their satisfaction level on a scale. A high CSAT score is an indication of satisfied customers.
9. NPS (Net Promoter Score) NPS gauges customer loyalty by asking how likely they are to recommend your product or service to others. Respondents rate on a scale from 0 (not likely) to 10 (very likely). Respondents may sometimes be given a field to indicate why they’ve given a particular score. A high NPS signifies strong customer advocacy. Generally, a company would classify a respondent who gives out a score of 9-10 as a ‘promoter’, meaning that they would likely recommend the product/service to others. The group that scores 7-8 are known as ‘passives’. While they are not unhappy, they might also easily be swayed by competitors. A score of 6 and below would classify a respondent as a ‘detractor’, meaning they might possibly spread bad word-of-mouth.
10. Onboarding Onboarding involves guiding new customers through the initial setup and training process. It ensures they get started smoothly. An example is helping a new software user configure their account, arrange for training if necessary and do periodic check-ins to ensure that the client is able to use the software effectively.
11. Retention Retention is the act of keeping existing customers engaged and satisfied to prevent them from churning. Strategies to boost retention include providing excellent support and delivering value. Retention is naturally a huge part of a CSM’s role. According to this study on Forbes, it can cost 4-5 times more to sign a new customer than it does to retain an existing one. This is especially true for SaaS companies.
12. Renewal Renewal refers to a customer’s decision to extend their subscription or contract with your company. Successful CSMs aim to secure renewals by demonstrating ongoing value. Depending on your company, however, CSMs may
13. Customer Journey The customer journey maps the various stages a customer goes through, from awareness to post-purchase. Understanding this journey helps tailor support and communication.
14. Feature Requests Feature requests are suggestions from customers for product improvements or new features. CSMs collect these requests and share them with the product development team to enhance the product.
15. Engagement Engagement measures how actively customers interact with your product or service. CSMs monitor engagement to gauge customer satisfaction and identify opportunities for improvement.

Now that you’re equipped with these essential CSM terms and examples, you’re better prepared to excel in your new role. Embrace the learning process, and remember, your teaching skills, like explaining complex concepts and adapting to diverse audiences, will undoubtedly benefit you in your career transition. Welcome to the exciting world of Customer Success in tech! 🚀💻