“What’s the difference between a Customer Success Manager and a Partner Success Manager?”

It’s a fair question. The titles sound similar, but the audiences, priorities, and daily work can be very different.

Here’s a clear breakdown so you can see which path might be the best fit.

1. Who They Serve

• CSM – Works directly with the end customer using the product or service. Their job is to make sure the customer gets value, renews, and ideally expands their use. For a deeper look at the role and growth paths, see my Ultimate Guide to Customer Success Managers and the full Customer Success Career Guide.

• PSM – Works with business partners or channel partners who resell, implement, or integrate your product. Their job is to enable those partners to succeed with their own customers.

2. Primary Goals

• CSM – Focus on adoption, usage, satisfaction, and renewals for direct accounts.

• PSM – Focus on partner enablement, co-selling opportunities, and ensuring the partner’s customers also get value (through the partner).

3. Day-to-Day Work

Customer Success Manager

• Running onboarding calls for new accounts — my Customer Onboarding Checklist Guide can help you set this up.

• Analyzing product usage to spot risk or upsell opportunities

• Meeting with customer stakeholders to review progress and plan next steps

Partner Success Manager

• Training partner sales and implementation teams

• Creating joint go-to-market plans

• Coordinating partner feedback to improve programs

4. Key Skills

While both roles require relationship-building, communication, and product knowledge, their emphasis differs:

CSM

• Customer advocacy — representing the customer’s needs to internal teams

• Adoption coaching — guiding customers through feature use cases that directly tie to their business goals

• Problem-solving under pressure — handling escalations in a way that turns potential churn into renewed trust (Master Escalations in Customer Success covers proven frameworks)

PSM

• Business development — identifying new revenue opportunities with partners

• Partner enablement — designing training, toolkits, and playbooks to help partners sell and deliver effectively

• Ecosystem thinking — understanding how your product fits into a partner’s broader portfolio and aligning your success strategy accordingly (Top Performing CSM Traits & Frameworks can help build these capabilities).

5. Which Role Fits You?

• If you enjoy working directly with end users and being hands-on in solving their problems → CSM might be the better fit.

• If you like building B2B relationships and enabling others to deliver success at scale → PSM could be a great match.

Pro Tip:
Skills from teaching, training, or facilitation can be valuable in both roles. If you’re transitioning careers, highlight how you’ve:

• Simplified complex topics for different audiences

• Designed structured learning experiences that keep people engaged

• Monitored progress and adapted your approach based on real-time feedback

If you’re moving from education or another field, my From Teacher to Customer Success Guide breaks down exactly how to position your experience for these roles. You can also explore the Best Certifications for Customer Success Managers to strengthen your resume.

✅ Whether you choose a CSM or PSM path, the core principle is the same: help others succeed, and your company will succeed with them.

💌 Want more actionable Customer Success guides, frameworks, and career strategies?

Related Resources

• Customer Success to Consulting Career Transition Guide – How to leverage CS skills for higher-paying consulting opportunities.

• Sales to CS Handoff: 6-Question Framework – Improve collaboration between sales and success teams for smoother onboarding.

• CSM to Product Manager Career Transition Guide – Moving from customer-facing to product-focused roles.

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As a Customer Success professional, you're always on the lookout for metrics that capture the health and growth potential of your company’s SaaS business.

This is where Net Dollar Retention (NDR) comes in—a powerful metric to measure success in the subscription economy.

Part 1/2

Why NDR Should Be Your New Obsession

NDR isn't just another acronym.

It's a comprehensive snapshot of your customer base's financial trajectory.

Here's why it matters:

• It's a growth indicator

  An NDR over 100% means you're growing without acquiring new customers.

• It reflects customer satisfaction

  High NDR = satisfied, expanding customers.

  Low NDR = time to sound the alarm.

• It's an investor magnet

  Venture Capitalists (VCs) love NDR.

  A strong NDR often boosts your company's valuation.

Breaking Down the NDR Formula

The calculation of NDR is simpler than it looks:

NDR = [(Starting MRR + Expansion − Downgrades − Churn​) / Starting MRR] × 100%

Let's break it down with a real-world example:

• Starting MRR: $100,000

• Expansion: $10,000 (upsells and cross-sells)

• Downgrades: $5,000

• Churn: $3,000

Plugging these numbers in:

NDR = (100,000 + 10,000 − 5,000 − 3,000​) × 100% = 102%

And voilà!

Your NDR is 102%, showing a healthy 2% growth from your existing customers.

Tracking NDR: From Spreadsheets to Sophisticated Software

The DIY Approach

For smaller CS teams, a simple spreadsheet might be enough.

Create columns for Starting MRR, Expansion, Downgrades, and Churn.

Input your data monthly and let Excel work its magic.

Pro: Cost-effective and customizable.
Con: Time-consuming and open to errors as you scale.

Leveling Up with Software

As your customer base grows, consider investing in NDR-tracking software.

For more options, check out my guide on the best customer success platforms.

Tools like Chargebee and FlowCog integrate with your CRM and billing systems for automated, accurate calculations.

Pro: Saves time, reduces errors, and provides deeper insights.
Con: Requires initial setup and ongoing subscription costs.

NDR vs. NRR: Are They the Same?

Definitions

Net Dollar Retention (NDR):

• Measures the percentage change in revenue from existing customers over a specific period, accounting for upgrades, downgrades, and churn.

• Typically calculated on an annual basis but can also be measured monthly.

Net Revenue Retention (NRR):

• Measures the percentage of revenue retained from existing customers.

  This includes revenue from upsells and cross-sells, minus revenue lost from downgrades and churn.

• Often used interchangeably with NDR.

To learn more about NRR, check out my Net Revenue Retention (NRR) guide.

Key Differences

NDR and NRR are fundamentally similar.

But they can be distinguished by their specific focus and usage:

1. Terminology and Context:

   • NDR: Often used to highlight the retention of "dollars" or monetary value within a business.

   • NRR: The focus is on the retention and growth of "revenue," which can include various forms of recurring income.

2. Calculation Period:

   • Both metrics can be calculated monthly or annually.

     But NDR is sometimes specifically used to measure changes within an individual customer's first 12 months.

     NRR is more broadly applied to all customers over a set period.

3. Usage in Reporting:

   • NDR: Frequently highlighted in investor reports and IPO filings to show the financial durability and growth potential of a SaaS business.

   • NRR: Used more broadly in internal financial analyses and strategic planning to assess customer retention and expansion efforts.

You can use NDR and NRR interchangeably and they are calculated using similar formulas.

The choice of terminology may depend on the specific context or focus of the analysis.

Both metrics are key for assessing customer retention and revenue growth.

They provide valuable insights for strategic decision-making and investor relations.

For a comprehensive list of key metrics, check out my guide to top SaaS metrics and KPIs.

NDR in Relation to Other Key Customer Success Metrics

NDR is a key metric.

And it's important to understand how it relates to other key customer success metrics.

As I outlined in my 7 Customer Success Metrics You Need To Know guide, here's how NDR fits into the bigger picture:

1. Gross Revenue Retention (GRR)

   While NDR includes expansion revenue, GRR focuses solely on retained revenue.

   NDR will always be higher than or equal to GRR.

2. Customer Lifetime Value (CLV)

   A high NDR often correlates with a higher CLV, as it indicates customers are expanding their usage over time.

3. Customer Effort Score (CES)

   A low CES (indicating ease of use) can contribute to a higher NDR by reducing churn and encouraging expansion.

4. Net Promoter Score (NPS)

   A high NPS often correlates with a high NDR, as satisfied customers are more likely to expand their business with you.

So, understanding these relationships can help you develop a more comprehensive view of your customer success efforts and overall business health.

Making NDR Your CS Team's Superpower

1. Set NDR goals: Aim for that coveted 120%+ benchmark.

2. Explore the components: Analyze what's driving your expansions and causing churn.

   My guide on preventing churn can help.

3. Align team incentives: Tie bonuses to NDR improvements.

4. Educate your customers: Help them see the value in upgrades and additional features.

   My tips for engaging product demos can be useful here.

5. Celebrate wins: Did you hit a new NDR high? Time to celebrate!

   ---

For more about customer success strategies, check out my customer success fundamentals and strategies guide.

Ultimately, a rising NDR is what you need—from customer satisfaction to your company's bottom line.

For more insights on excelling in your role, check out my guide to being a great Customer Success Manager.

Check out my ultimate guide for Customer Success Managers and stay ahead in your career!

Part 2/2: NDR Benchmarks and Success Stories

…

Access Exclusive NDR Insights

Upgrade to Premium now and get:

• Detailed industry benchmarks to gauge your company's NDR performance

• An in-depth case study of how a mid-sized SaaS provider improved their NDR from 95% to 108%

• Expert strategies to boost your own NDR

Upgrade To Premium

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“I upgraded to Premium to access your exclusive content and learn from you. I find your content very valuable” - Tasneem Nomanbhai, Customer Success Manager, Digital Marketing

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Read more

But what does it really mean in the field?

Here are the common misconceptions and how to make Customer Success work again!

What People Often Think Customer Success Looks Like

1. No customers leaving, canceling their contracts

2. Always selling more to existing customers

3. Perfect customer satisfaction scores

4. Customers who n…

Read more

It's about building strong relationships with customers.

Understanding their needs, and proactively providing support to ensure they are getting the most out of what they have purchased.

Key Objectives of Custome…

Read more

It is a skill in the sense that it requires a set of specific knowledge, abilities, and behaviors that can be developed over time.

These skills include:

• Customer empathy: Understanding the needs, goals, and challenges of customers

• Relationship building: Establishing and maintaining strong relationships with customers

• Problem-solving: Identifying and resolving customer issues

• Communication: Effectively communicating with customers at all levels

• Data analysis: Analyzing customer data to identify trends and patterns

• Account management: Managing the overall relationship with a customer

However, customer success is also a broader concept that goes beyond individual skills.

It is about creating a customer-centric culture within an organization, ensuring that all departments are aligned to deliver a successful experience for every customer.

It is about building a customer-centric organization that is focused on long-term value rather than just short-term transactions.

In this way, customer success is not just a skill that can be mastered by a few individuals.

It is a mindset and a philosophy that can be adopted by an entire organization.

When customer success is embedded in the “DNA” of an organization, it can lead to significant benefits, including increased customer satisfaction, loyalty, and advocacy.

Here are some of the reasons why customer success is such an important skill and concept:

• Customer satisfaction is a key driver of business success

  Happy customers are more likely to buy more from you, stay with you longer, and refer their friends and colleagues.

• Customer retention is more cost-effective than acquiring new customers

  According to this study published in Harvard Business Review, it is five to twenty-five times more expensive to acquire a new customer than to retain an existing one.

• Customer success can differentiate your company from competitors

  Focusing on customer success helps you create a competitive advantage that is difficult for others to replicate.

As customer expectations continue to rise, the importance of customer success will only increase.

Businesses that invest in customer success will be well-positioned to succeed in the future.🚀🚀

-Hakan.

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This covers a range of activities to achieve six major specific goals:

1. Onboarding and Adoption

Customer success managers guide new customers through the onboarding process, ensuring they understand the product's features and capabilities and can effectively use them to achieve their desired outcomes.

This may involve providing personalized training, creating onboarding documentation, and offering ongoing support during the initial adoption phase.

2. Customer Advocacy and Engagement

Cultivating strong customer relationships is key to customer success.

This involves regular communication with customers, gathering feedback, addressing concerns quickly, and proactively identifying potential issues.

With care and rapport, customer success managers turn happy customers into brand advocates.

3. Driving Customer Retention and Growth

Customer retention is paramount to the success of any business.

Customer Success Managers’ goal is to minimize churn by understanding customer needs, addressing their pain points, and proactively addressing potential issues that could lead to dissatisfaction.

They also identify opportunities for upselling and cross-selling to expand existing customer relationships and drive additional revenue.

4. Gathering Customer Feedback and Insights

Customer Success Managers serve as a massive source of customer feedback, providing insights into product usage, pain points, and feature requests.

This information is key for product development teams to prioritize improvements and ensure the product aligns with evolving customer needs.

5. Promoting Customer Education and Self-Service

Customer success managers help customers become self-sufficient users by providing comprehensive training materials, creating easy-to-access knowledge bases, and offering self-service support options.

This not only reduces support costs but also improves the customer experience.

6. Measuring and Analyzing Customer Success

Customer success managers leverage data analytics to monitor vital metrics like customer satisfaction, retention, and adoption rates.

These insights help drive new success initiatives, identify areas for improvement, and guide business decisions based on customer data.

Simply said, the main role of Customer Success is the ongoing process that covers the entire customer lifecycle, from initial onboarding to long-term engagement to help customers achieve their business goals faster than if they had to do it by themselves.

This not only benefits the customers but also drives business outcomes for the company.

-Hakan.

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Customer Success Managers (CSMs) play a fundamental role in helping businesses achieve their goals.

They do it by ensuring that their customers are successful in using their products or services.

CSMs work with customers to onboard them to the product, provide training and support, and troubleshoot any issues that may arise.

They also track customer usage data and identify opportunities for upsells and cross-sells.

4 Reasons Why Customer Success Is A Good Job

1. It is a growing field

Although some layoffs recently, the demand for CSMs is expected to continue to grow in the coming years, as businesses increasingly recognize the importance of customer success to their bottom line.

2. It is a rewarding career

CSMs have the opportunity to make a real impact on the success of their customers.

When customers are successful, it is often a reflection of the CSM's hard work and dedication.

3. It is a versatile career

There are many different types of customer success roles, so CSMs can find a niche that fits their interests and skills.

4. It is a well-paying career

CSMs can earn a good salary, and there is also the potential for bonuses and commissions.

If you are looking for a challenging and rewarding career, customer success may be a good fit for you.

8 Skills and Qualities For Customer Success

1. Interpersonal Skills

Customer Success roles often involve interacting with customers, understanding their needs, and helping them derive value from the product or service.

If you enjoy building relationships and have strong interpersonal skills, this could be a rewarding job for you.

2. Problem-Solving

Customer Success professionals often need to address customer issues and find solutions to problems.

If you enjoy troubleshooting and finding creative solutions, this could be a good fit.

3. Product Knowledge

You'll need to have a good understanding of the product or service you're supporting.

If you enjoy learning about new technologies and have an interest in the industry, this can be a positive aspect.

4. Emotional Intelligence

Dealing with many different types of customer emotions, including frustration or dissatisfaction, requires a high level of emotional intelligence (EQ).

If you can show empathy and handle such tough situations well, it can be a fulfilling role.

5. Metrics and Targets

Customer Success roles often have specific performance metrics and targets.

If you thrive in a goal-oriented environment and enjoy measuring and improving your performance, this might be a good fit.

6. Company Culture

The company culture plays a significant role in job satisfaction.

If the company values customer success at C-level and provides the necessary support and resources, it can boost your job experience.

7. Career Growth

Some companies offer clear paths for career growth within the Customer Success field.

If there are opportunities for advancement and skill development, it can make the job more appealing.

8. Industry Trends

Consider the trends in the industry.

Customer Success has become a critical function in many businesses, and professionals in this field are increasingly recognized for their impact on customer satisfaction and retention.

If you have the skills and qualities that are important for success in customer success, I encourage you to explore this rewarding career path.

Reach out to current or former employees if possible, join community networks, and consider whether the responsibilities and expectations align with your career goals and values.

Overall, if you enjoy helping customers succeed and find value in a product or service, a career in Customer Success can be a fulfilling path for you.

-Hakan.

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