Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

Why Hiring a VP of Customer Success at a Million Makes Sense

28 Mar 2024 · 0 min

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Jason M. Lemkin argues that hiring a VP of Customer Success as early as $1M ARR can make financial sense: even a modest improvement in renewal rates (10–20%) could generate $100k–$200k in additional revenue next year, offsetting much of the VP’s salary. He recommends hiring outstanding talent early ("hire any great VP you can fire at a million") to drive retention and revenue expansion.

VP of customer success filling it is not too early to make your customers happy, is it? Most of us stumble because customers, especially if we sign annual contracts, they don't renew for a year. So we tend to start thinking about the VP customers success around3.4 million in revenue. But what if you hired her at a million and she renewed another 10 or 20% extra? Got another 100 or $200,000 of money in next year? Would that cover the salary? At least a big chunk of it. So hire any great VP you can fire at a million.