Which key industry trend explains the need for companies to invest in a Customer Success practice and Customer Success Manager role?

The correct answer highlights a vital trend in the industry, specifically the shift towards consumption models characteristic of a subscription economy. This transformation emphasizes the importance of a Customer Success practice and the role of a Customer Success Manager. In a subscription economy, businesses often rely on ongoing customer relationships that require continuous engagement and support to ensure product adoption and customer satisfaction. The long-term success of services depends on customer retention and upselling capabilities, which are core responsibilities of Customer Success Managers.

As companies shift to subscription models, they need to ensure that customers derive continual value from their products or services. This aligns the business’s revenue directly with customer success, creating a mutual dependency that necessitates a proactive approach to customer engagement. By investing in a Customer Success practice, companies can better manage this dynamic, helping customers achieve their goals while fostering loyalty and reducing churn.

Other factors, such as the need for service organizations to evolve to more proactive services, represent important considerations, but they are not the primary driving force of the current trend towards Customer Success practices. Similarly, while IT budget shifts and traditional sales methods are relevant to broader market dynamics, they do not directly encapsulate the necessity for a Customer Success focus like the subscription economy does. In this context, managing ongoing relationships and ensuring