How Much Should You Actually Spend on Customer Success?

The #1 question I get from CS leaders?

👉 “How do I get more budget for Customer Success?”

Usually, it’s not just about adding headcount. It’s about:

• Hiring for specialized roles (eg. onboarding manager or implementation manager or CS Ops)
• Investing in CS tooling, data or automation
• Funding CS enablement

The need is clear. But the business case? Not so much.

And that’s because most CS leaders don’t have the benchmarks to prove whether they’re under-resourced in the first place.

Most Companies Don’t Know What “Good” Looks Like

Sales and Marketing have long-established benchmarks.

But Customer Success? It’s still playing catch-up.

Which means most CS leaders are trying to justify budget in a vacuum—without clear data on what’s normal, what’s strategic, and what’s risky.

And that’s where companies get stuck.

They underspend. They delay investments. And they treat CS as overhead instead of a growth engine.

That’s why understanding what healthy investment looks like is so powerful. It gives you leverage to push for the resources your team actually needs to drive impact.

How Much Should You Be Spending on CS?

As companies grow, so does the scale and complexity of Customer Success.

More customers to onboard. More renewals to manage. More stakeholders to influence. More product complexity to support. More revenue to protect or expand.

And with that growth comes one simple truth: Customer Success investment needs to increase.

Let’s look at real-world benchmarks from SaaS Capital, OpenView, and other reports analyzing thousands of private SaaS companies:

The takeaway? The further you grow, the more you’ll need to invest in your CS organization to sustain retention, drive expansion, and deliver customer outcomes at scale.

Yet this is where many companies fall short:

❌ Early-stage companies (<$10M ARR) often don’t know how much to invest and end up severely under-resourcing CS just when scale starts to kick in.

❌ Growth-stage companies underestimate how much more structure, specialization, and systems they need to support their customers effectively.

This benchmark gives us a real-world look into how mature companies are thinking about CS and a helpful guidepost to evaluate where your own investment sits today.

Because without the right resourcing, even the best strategy will fall flat.

Introducing the CS Penalty Curve

Here’s what I call the Customer Success Penalty Curve:

You don’t feel the impact of underinvestment right away. It creeps up on you—slowly, quietly—until it hits you in NRR, team attrition, or failed expansions.

It starts with signs like:

• CSMs drowning in accounts
• Onboarding being inconsistent
• Health scores being unreliable
• QBRs getting skipped
• Revenue teams blaming CS for “not doing enough”

Then, it snowballs:

• Customers churn without warning
• Team morale drops
• Forecasting becomes guesswork
• Leaders lose credibility with the C-suite

And by the time these signals show up on a dashboard, the damage is already done.

That’s why I always say:

CS underinvestment isn’t a budget issue. It’s a business risk.

What to Do With This Data

Here’s how to put these benchmarks into action:

1️⃣ Benchmark yourself Take a hard look at your current CS spend. → What’s your team size? → What are you spending on tools, enablement, CS Ops, etc.? → What % of ARR is that?

2️⃣ Align your ask to outcomes Don’t just say “we need more budget.” Say: “Companies at our ARR typically invest $X. Here’s the risk if we don’t. Here’s the upside if we do.”

3️⃣ Build a phased roadmap You don’t need to do everything at once. But you do need a plan. Start with your biggest pain point—whether it’s onboarding, tooling, enablement or digital engagement—and show how incremental investment drives measurable impact.

4️⃣ Speak the language of the CFO Frame CS spend not as a cost center, but as an efficiency lever:

• Reduce churn
• Increase NRR
• Improve forecasting
• Accelerate expansion cycles

My Take: Budget Isn’t Just a Finance Question. It’s a Strategy Question.

Customer Success is often the most underfunded function despite being the one responsible for the majority of revenue after the sale.

That’s not just frustrating. It’s dangerous.

You can’t scale CS with headcount alone. You also can’t scale it with a $0 tooling budget, no Ops support, and 1 CSM managing 80 accounts.

High-performing CS teams are built on:

• The right people in the right roles
• Strategic investment in tools and programs
• A clear operating model that maps to revenue growth

If you’re not resourcing your CS org properly, you’re not just delaying progress. You’re risking retention.

Want Help Making the Case for Investment?

Let’s take a look at your current CS investment, compare it to industry benchmarks, and identify where you need to scale next before you hit the penalty curve.

👉 Book a free consultation with me ​here​ Let’s figure out what your CS org needs right now and how to make a strategic case for it.