CSM Exam || All Questions Answered Correctly.
Explain the key drivers creating the need for customer success correct answers 1. CS fills
organization gaps between sales and customer support
2. CSMs provide value to customers, individual customer stakeholders, and solution providers
3. CSMs focus on the relationship between solution capabilities and customer business outcomes
4. CSMs enable customer solution competence and self sufficiency
Define customer success (expected & unexpected value) correct answers The purpose of
customer success management is to maximize the value gained for both the customer and
solution provider. The focus is to enable customer's business outcomes through the utilization of
the CSM's company's products and services.
Explain the customer lifecycle journey correct answers Experience > Renewal > Loyalty >
Expand
Awareness > Consideration > Evaluation > Purchase
(start over)
Compare customer success, customer support, and sales correct answers Customer success:
Assists on account-based issues and helps customers learn to succeed and thrive and tend toward
self sufficiency
Customer support: Answer small, simple questions
Sales: Responsible for all selling functions; concerned about money, not necessarily customer
success
Explain the value proposition for customer success (vendor) correct answers 1. Increased
renewal rate
2. Incremental renewals
3. New sales (cross sells/expansion)
4. Advocacy (referrals, case studies, testimonials)
5. Product improvement (better understanding of customer needs)
Explain the value proposition for customer success (customer) correct answers 1. Reduced time
to value
2. Increased ROI
3. Tangible impact to business outcomes
4. Supports project success - shared accountability
5. Support of business vision
Explain different IT purchasing and consumption models: Software licensing correct answers
Software licenses typically provide end users with the right to one or more copies of the software
without violating copyrights.
Sum: Buying the software outright, no subscription
Explain different IT purchasing and consumption models: Service subscriptions(IaaS, PaaS,
Saas) correct answers IaaS: cloud-based services, pay-as-you-go for services such as storage,
, networking, and virtualization. PaaS: hardware and software tools available over the internet.
SaaS: software that's available via a third-party over the internet.
Sum: Subscriptions to store, software, and other tools via the internet
Explain different IT purchasing and consumption models: Enterprise agreements correct answers
Enterprise management systems are large-scale software packages that track and control the
complex operations of a business. They are used as a central command center, automating the
organization and making it convenient to prepare reports and make decisions.
Sum: Blends licensing and subscriptions
Explain different IT purchasing and consumption models: CapEx vs OpEx correct answers
Capital expenditures are menjor investments in goods that show up on the balance sheet and are
depreciated over the life of the asset, typically 3-5 years (hardware/software purchases using
cash expensed at point in time)
Operating expenditures show up on the profit and loss account and relate to expenses incurred on
an ongoing basis (hardware/software purchases that are expensed over time)
Identify the key metrics for customer success: Leading indicators correct answers Activity
oriented, indivative of future outcomes, and answers the question: "Are you likely to achieve
your goal? (e.g. Number of customer logins this past month [usage])
Identify the key metrics for customer success: Lagging indicators correct answers Output
oriented and answers the question: "Have you achieved the goal?" (e.g. Number of renewals
[revenue])
Explain the financial implication of: Churn correct answers % of customers who do not renew
OR % of revenue that is not renewed
May include offering a discount o keep business, providing a lower service level, or a reduction
in subscription
Explain the financial implication of: Expand correct answers Customer contract grows in scope
due to new features, additional products/license count, services
Explain the financial implication of: Renewal (MRR, ATR, LTV, ACV) correct answers
Customer purchases another subscription from vendor
MRR: Monthly Recurring Revenue
ATR: Available to Renew
LTV: Customer Lifetime Value (encourages firms to shift focus from quarterly profits to long-
term health of relationships)
ACV: Annual Contract Value
Describe customer engagement models based on customer segmentation: High touch correct
answers Attached to just one (or a few) large account/s; focus on building strong relationships
within customer through in-person interactions
Explain the key drivers creating the need for customer success correct answers 1. CS fills
organization gaps between sales and customer support
2. CSMs provide value to customers, individual customer stakeholders, and solution providers
3. CSMs focus on the relationship between solution capabilities and customer business outcomes
4. CSMs enable customer solution competence and self sufficiency
Define customer success (expected & unexpected value) correct answers The purpose of
customer success management is to maximize the value gained for both the customer and
solution provider. The focus is to enable customer's business outcomes through the utilization of
the CSM's company's products and services.
Explain the customer lifecycle journey correct answers Experience > Renewal > Loyalty >
Expand
Awareness > Consideration > Evaluation > Purchase
(start over)
Compare customer success, customer support, and sales correct answers Customer success:
Assists on account-based issues and helps customers learn to succeed and thrive and tend toward
self sufficiency
Customer support: Answer small, simple questions
Sales: Responsible for all selling functions; concerned about money, not necessarily customer
success
Explain the value proposition for customer success (vendor) correct answers 1. Increased
renewal rate
2. Incremental renewals
3. New sales (cross sells/expansion)
4. Advocacy (referrals, case studies, testimonials)
5. Product improvement (better understanding of customer needs)
Explain the value proposition for customer success (customer) correct answers 1. Reduced time
to value
2. Increased ROI
3. Tangible impact to business outcomes
4. Supports project success - shared accountability
5. Support of business vision
Explain different IT purchasing and consumption models: Software licensing correct answers
Software licenses typically provide end users with the right to one or more copies of the software
without violating copyrights.
Sum: Buying the software outright, no subscription
Explain different IT purchasing and consumption models: Service subscriptions(IaaS, PaaS,
Saas) correct answers IaaS: cloud-based services, pay-as-you-go for services such as storage,
, networking, and virtualization. PaaS: hardware and software tools available over the internet.
SaaS: software that's available via a third-party over the internet.
Sum: Subscriptions to store, software, and other tools via the internet
Explain different IT purchasing and consumption models: Enterprise agreements correct answers
Enterprise management systems are large-scale software packages that track and control the
complex operations of a business. They are used as a central command center, automating the
organization and making it convenient to prepare reports and make decisions.
Sum: Blends licensing and subscriptions
Explain different IT purchasing and consumption models: CapEx vs OpEx correct answers
Capital expenditures are menjor investments in goods that show up on the balance sheet and are
depreciated over the life of the asset, typically 3-5 years (hardware/software purchases using
cash expensed at point in time)
Operating expenditures show up on the profit and loss account and relate to expenses incurred on
an ongoing basis (hardware/software purchases that are expensed over time)
Identify the key metrics for customer success: Leading indicators correct answers Activity
oriented, indivative of future outcomes, and answers the question: "Are you likely to achieve
your goal? (e.g. Number of customer logins this past month [usage])
Identify the key metrics for customer success: Lagging indicators correct answers Output
oriented and answers the question: "Have you achieved the goal?" (e.g. Number of renewals
[revenue])
Explain the financial implication of: Churn correct answers % of customers who do not renew
OR % of revenue that is not renewed
May include offering a discount o keep business, providing a lower service level, or a reduction
in subscription
Explain the financial implication of: Expand correct answers Customer contract grows in scope
due to new features, additional products/license count, services
Explain the financial implication of: Renewal (MRR, ATR, LTV, ACV) correct answers
Customer purchases another subscription from vendor
MRR: Monthly Recurring Revenue
ATR: Available to Renew
LTV: Customer Lifetime Value (encourages firms to shift focus from quarterly profits to long-
term health of relationships)
ACV: Annual Contract Value
Describe customer engagement models based on customer segmentation: High touch correct
answers Attached to just one (or a few) large account/s; focus on building strong relationships
within customer through in-person interactions
