How do you approach right-sizing of CSM or PSM Teams as we're in a somewhat stagnant microeconomic climate?

Know where you are - Data Analysis - Assess the current performance of your team. Review your active customer list - How many accounts per CSM, Total Portfolio ARR per CSM, active customers, customer health. Look at churn / retention and expansion rates. Looks at CSat or NPS

Customer Segmentation - Look into customer segmentation based on the value customers bring to your business. Often customers are segmented in High, Mid and Low Touch. High-value customers may require more focussed CSM attention, while lower-value customers may be served well a more automated or self-service approach.

Customer Life Cycle Mapping - map out the entire customer journey for Sales Hand Over, Customer Orientation, Customer Onboarding, Implementation, Go-Live and Renewal. Are you assigning CSMs to the key Moments That Matter at the Right time

Utilization - examine if your CSMs are spending too much time on tasks that are really out of scope or low value for Customer Success. Are CSMs being pulled into too many escalations or being asked to perform Customer Service type reactive tasks.

Cost Analysis - evaluate the cost of maintaining your current Customer Success Team. Consider salaries, benefits, software, and other associated expenses for their location. Keep High Touch CSMs close to customers however look to put pooled Many to Many CSMs in a cost effective location.

Digital Touch Automation - assess what tasks can be automated with tools and technology. Can you become more efficient by automating administrative tasks?

RA(S)CI - Map out a RACI Swimlane Responsibility Matrix that could include Sales, Solutions Engineering, Marketing, Sales Development Reps and Renewals Team. Look to minimize duplication of effort on tasks. Ensure clear ownership of tasks (Accountability). 

OKRs, KPIs and Metrics - ensure you have clear Objectives - Key Results, Key performance indicators and Metrics in place. You can’t manage what you don’t measure. 

Training and Skills Development: Invest in training and skills development for your existing team members. This will lead to improvements in their efficiency and effectiveness and productivity. Ensure IDPs are in place for your team. This will help with staff retention.