Short answer: Customer success managers rarely earn commission per deal. A bonus plan on churn and NRR fits better, because CSMs influence whether customers stay and grow. In this example the quarterly bonus is DKK 28,500, weighted 60% on GRR (target 92%) and 40% on NRR (target 102%). Each percentage point above or below target moves that part of the bonus by 6 percentage points.
The example is illustrative, not a benchmark: the numbers show how the plan calculates, not what a customer success manager should earn. Amounts are in Danish kroner (DKK) before pension. It is one of ten examples in commission plans by role.
Who is this plan for?
- Customer success managers with a fixed book of customers they onboard and look after.
- Subscription businesses where ARR and churn can be measured per customer.
- Teams where an account manager or AE closes the expansion deals, but the CSM lays the groundwork.
If the CSM closes expansion deals personally, see the NRR-based account manager plan.
The plan at a glance
| Element | Example |
|---|---|
| Base salary | DKK 38,000 a month (DKK 114,000 a quarter) |
| Variable pay at 100% | DKK 28,500 a quarter: DKK 17,100 on GRR and DKK 11,400 on NRR |
| OTE | DKK 570,000 a year |
| Pay mix | 80/20 |
| Metrics | GRR and NRR for the book over rolling 12 months. Example: 40 customers with DKK 4,000,000 ARR, target GRR 92% and NRR 102% |
| Rate | Each part: target amount x share. Share = 100% + 6 percentage points per point above or below target |
| Accelerator and threshold | Floor: zero for a part more than 10 points below target. Cap: 160% per part |
| Payout | Quarterly, with the salary for the month after quarter end |
| Clawback | None. Measuring over rolling 12 months picks up later losses |
With a DKK 4,000,000 book, 92% GRR means DKK 320,000 of churn and downgrades over 12 months, and 102% NRR means DKK 400,000 of expansion on top.
Worked example: 70, 100 and 130% of target bonus
| Outcome | 70% | 100% | 130% | Mixed |
|---|---|---|---|---|
| GRR | 87% | 92% | 97% | 97% |
| NRR | 97% | 102% | 107% | 97% |
| Share, GRR part | 70% | 100% | 130% | 130% |
| Share, NRR part | 70% | 100% | 130% | 70% |
| Bonus, GRR part | DKK 11,970 | DKK 17,100 | DKK 22,230 | DKK 22,230 |
| Bonus, NRR part | DKK 7,980 | DKK 11,400 | DKK 14,820 | DKK 7,980 |
| Total bonus | DKK 19,950 | DKK 28,500 | DKK 37,050 | DKK 30,210 |
| Base salary for the quarter | DKK 114,000 | DKK 114,000 | DKK 114,000 | DKK 114,000 |
| Pay for the quarter | DKK 133,950 | DKK 142,500 | DKK 151,050 | DKK 144,210 |
The "Mixed" column shows why weighting matters: the CSM keeps customers (GRR 97%) but there is no expansion (NRR 97%). The GRR part pays 130% and the NRR part 70%, in total 0.6 x 130% + 0.4 x 70% = 106% of the target bonus, or DKK 30,210.
Pitfalls
- Targets the CSM cannot influence. If pricing and expansion sit entirely with others, give NRR a low weight or replace it with something the CSM controls, such as onboarding new customers on time.
- Paying twice. If both AM and CSM are paid on the same NRR, treat it as a deliberate team choice, not a mistake. Budget for it.
- Customer satisfaction as the only target. Satisfaction surveys can be swayed by who gets asked. Use them as a supplement, not as the whole bonus.
- Books of different quality. A CSM with many new customers often sees higher churn. Adjust targets per book.
- A variable part that is too small. A very small bonus does not change behaviour. A large one can tempt people to hide churn risk. Consider a team bonus for part of it.
Danish rules to know
Short and general, not legal advice. Check your collective agreement and employment contract, and ask your lawyer or employers' association if in doubt.
- Holiday pay on commission: The employee is entitled to compensation for commission lost because of holiday (Danish Holiday Act, ferieloven, sections 17 and 19). This plan is a bonus, not commission. How the bonus counts in the holiday pay calculation depends on how it is earned, so agree the method with your payroll provider. See holiday pay on commission.
- Sickness and parental leave: For salaried employees paid commission, pay during sickness and maternity leave must include the commission they would presumably have earned (Salaried Employees Act, funktionærloven, section 9(3)). For longer absence, a colleague may take over the book. Decide how the bonus is shared. See commission during sick leave.
- Bonus when someone leaves: A salaried employee who leaves during the financial year is entitled to a proportional share of profit shares, gratuities and similar payments (funktionærloven section 17 a). The quarterly bonus may be covered by the rule. If the CSM leaves mid-quarter, describe how the proportional share is calculated. See commission after resignation.
- Changing the plan: A material change, such as a lower rate or a higher threshold, must be notified with the employee's individual notice period. New targets that the agreement expects to be set each period do not, as a rule, require notice. Put the change rules in your commission agreement.
How to put the plan in writing
Use the bonus agreement template, since the plan is a bonus. Write down at least:
- Which customers are in the book, and how new and transferred customers are handled.
- How GRR and NRR are calculated, and over what period.
- The weighting, scale, floor and cap.
- Whether some losses are excluded, such as bankruptcies.
Try the numbers
Test pay mix and OTE in the OTE calculator, and see the effect of churn and corrections in the clawback and corrections calculator.
Related plans
- All ten commission plans by role
- NRR-based account manager plan
- Renewal commission plan
- Sales manager commission plan
Terms and models used in this plan: retention-based commission, target bonus, NRR, churn rate, team bonus, bonus scheme.
How Prowi helps
Prowi calculates the plan live from your CRM data, reps follow their earnings in the app, and once the period is approved the amount goes on to payroll. Book a demo to see your own plan calculated.
FAQ
Should customer success earn commission?
Rarely per deal. A bonus on retention and growth of the book suits the role better, because CSMs rarely close deals themselves but do influence whether customers stay.
How large is a customer success bonus?
That is your choice. In the example it is 20% of OTE. The more the CSM controls the outcome, the larger the bonus can be.
What is the difference between GRR and NRR?
GRR shows how much ARR remains after churn and downgrades. NRR adds expansion on top. Read more about NRR.
Sources
- Danish Salaried Employees Act (funktionærloven), consolidated act no. 1002 of 24/08/2017, sections 9 and 17 a. retsinformation.dk
- Danish Holiday Act (ferieloven), consolidated act no. 152 of 20/02/2024, sections 17 and 19. retsinformation.dk
This article is general information, not legal advice. The worked examples are illustrative.