For SaaS companies, survival and growth hinge on a simple but powerful truth: 75% of revenue, on average, comes from expansions and renewals, according to Forrester. This reality underscores a seismic shift in how companies must approach their growth strategies. While acquiring new customers remains important, long-term success now depends on unlocking the revenue potential of existing customers.
Customer Success (CS), once a function centered on retention and satisfaction, has evolved into a vital revenue-generating engine. As Marilee Bear, Gainsight’s Chief Revenue Officer, aptly states, “Customer success leaders need to think like revenue leaders.” It’s no longer just about preventing churn—it’s about driving growth, fueling renewals, and maximizing customer lifetime value. To thrive in this competitive SaaS landscape, companies must empower their CS teams to take on this revenue-first mindset and reimagine their role as a core driver of profitability.
The Shift in SaaS Revenue Models
The SaaS industry is undergoing a fundamental transformation in its approach to revenue. Historically, growth strategies relied heavily on acquiring new customers. However, the rising costs of customer acquisition, coupled with mounting pressure to prioritize profitability, are forcing SaaS companies to reassess their playbooks. Renewals and expansions within the existing customer base are now emerging as the most critical revenue drivers.
This shift isn’t just an operational adjustment—it’s a strategic imperative. Today, retention and expansion efforts make up the lion’s share of revenue, significantly outweighing the contribution of new customer acquisition. The economics are clear: customers who are already familiar with a product’s value, trust its capabilities, and know how to access support are far more likely to spend again. These customers also make purchase decisions faster than new prospects, creating a more efficient and predictable revenue stream.
To capitalize on this dynamic, SaaS companies need to move beyond the traditional view of Customer Success as a cost center. Instead, CS must be fully integrated into a company’s revenue strategy, delivering measurable outcomes like higher renewals, increased adoption, and seamless expansion opportunities. As economic pressures reshape the SaaS industry, companies that fail to prioritize this evolution risk being left behind.
Customer Success as a Revenue Engine
Customer Success is uniquely positioned to act as a revenue engine for SaaS companies. Unlike sales teams that primarily focus on the initial deal or upsell opportunities, CS teams maintain ongoing, in-depth relationships with customers throughout their lifecycle. These relationships give CS teams unparalleled insight into how customers use products, where they derive the most value, and when they are ready to grow their investment.
For example, Customer Success Managers (CSMs) can identify expansion opportunities during meaningful moments in the customer journey, such as reaching key adoption milestones or achieving specific business outcomes with a product. By recognizing these moments, CS teams can influence growth in ways that feel natural and aligned with the customer’s goals. Gainsight’s Chief Revenue Officer, Marilee Bear, highlights the opportunity here, noting that approximately 40% of SaaS revenue comes from expansion alone, and CS teams are best equipped to uncover and act on these opportunities.
Organizations like Okta have demonstrated the power of proactive CS strategies. By leveraging customer usage data to pinpoint behaviors signaling low adoption, Okta implemented automated CS initiatives that improved both customer health and renewal rates, ultimately driving a 13% increase in renewals. This kind of outcome shows how CS teams can directly influence revenue growth, proving they are far more than just relationship managers—they are growth accelerators.
The Role of AI and Digital-First Strategies in Customer Success
AI and digital-first strategies are revolutionizing how Customer Success teams operate, enabling them to scale their efforts and drive revenue more efficiently. These tools transform CS from a reactive function into a proactive, revenue-focused one by uncovering actionable insights in real time.
AI-powered tools, like Gainsight’s Staircase AI, analyze vast amounts of unstructured data—including customer interactions, product usage analytics, and support tickets—to identify expansion signals early. For instance, when a customer heavily engages with a specific feature, AI can flag it as a potential upsell opportunity. These tools enable CS teams to act with precision, delivering timely and relevant recommendations to customers.
Digital-first strategies also make it possible to scale CS efforts without requiring additional headcount. Automated playbooks guide CSMs through predefined workflows when expansion readiness is detected, while in-app nudges can prompt customers to upgrade their subscription or adopt premium features. Self-service upgrade options further streamline the process, allowing customers to take action independently, driving high-margin growth with minimal manual intervention.
By embedding AI and automation into their workflows, CS teams are no longer reliant on instinct or individual expertise to identify growth opportunities. Instead, they operate with consistency and data-driven precision, ensuring no expansion potential is left untapped.
Integrating Customer Success into the GTM Strategy
Customer Success must no longer be treated as a standalone department—it needs to be an integral part of the go-to-market (GTM) strategy. Today’s B2B buyers prioritize outcomes like fast ROI, ease of use, and scalability over traditional considerations like cost or features. To meet these priorities, CS teams must work alongside sales and marketing to deliver on the promises made during the acquisition phase.
A cohesive GTM strategy ensures that every customer is set up for long-term success from day one. This approach moves customers seamlessly through their lifecycle, creating opportunities to expand use cases, onboard additional teams, and adopt new products. By embedding CS into the GTM strategy, companies can achieve full-revenue cycle thinking, where retention and expansion efforts are seen as natural extensions of the initial sale.
Collaboration between CS and other GTM functions also yields valuable insights. CSMs can share real-time feedback from customers, flagging unmet needs, objections, and feature requests. This information helps sales and product marketing teams refine their messaging and positioning, making them more effective in both acquisition and expansion efforts. In this way, CS not only drives revenue directly but also amplifies the impact of the entire GTM strategy.
The Future of Customer Success as a Revenue Driver
The future of Customer Success is increasingly recognized as a vital revenue driver for businesses. As companies continue to evolve, the focus on customer success will play a crucial role in ensuring long-term growth and sustainability. By prioritizing customer satisfaction and engagement, organizations can foster loyalty and drive repeat business, ultimately enhancing their bottom line.
The evolution of Customer Success into a revenue-generating function is no longer optional—it’s essential for SaaS companies to thrive in today’s landscape. With 75% of revenue coming from renewals and expansions, the role of CS must expand beyond preventing churn to actively driving growth.
By leveraging AI, digital-first strategies, and a proactive approach to customer engagement, CS teams can scale their impact and deliver consistent, measurable results. Integrating CS into the broader GTM strategy ensures companies deliver on buyer priorities like ROI, ease of use, and scalability, creating a seamless experience that fosters long-term loyalty and growth.
Now is the time for revenue leaders to empower their Customer Success teams with the tools, insights, and incentives they need to act as true revenue drivers. The companies that embrace this shift will not only retain more customers but also unlock the full growth potential of their existing base, positioning themselves for sustained success in an increasingly competitive market.
Want to learn more? Check out How Singular Scaled Retention with AI-Powered Customer Intelligence.
