Online – October 31, 2026 -- Expansion ARR now accounts for 40% of total new ARR, up five points year on year, according to a 2025 Benchmarkit SaaS report cited at a ChurnZero webinar. The figure sharpens a decision facing customer success (CS) leaders planning for 2027: whether their teams own retention, expansion, or both.

Unanet ties CSM performance to net bookings across both revenue streams

Unanet's CS team owns retention and expansion, and CSMs are measured on a net bookings basis, said Jeff Davison, the company's Chief Customer Officer. His reasoning: accounts cannot grow unless the company retains them.

WelcomeHome keeps CSMs on retention while sales handles expansion

WelcomeHome Software takes the opposite approach. Chief Customer Officer Emily Alexander said expansion in senior living means a customer buying or building a new building, so CSMs are measured on retention and adoption metrics and "we're letting sales sell." She added that the model could change.

Lukas Alexander, VP of Customer Success at ChurnZero, said CSMs can drive growth without owning expansion. They can refer qualified leads to sales and identify customers who will act as brand advocates.

Panel advises balanced pay and fewer roadblocks to keep CSMs motivated

CSMs responsible for several metrics should be paid for each stream they own, including renewals, upsells and gross revenue retention (GRR). Lukas said CSMs perform better when leaders remove roadblocks and celebrate wins, including saved customers. Emily recommended giving CSMs room for passion projects.

ChurnZero CEO forecasts 25%-50% more CSM bandwidth from AI by next year

Ravi Pimplaskar, Senior Director of Revenue Marketing at ChurnZero, who hosted the webinar, cited ChurnZero CEO You Mon Tsang's prediction of a 25% to 50% bandwidth gain for CSMs. Panelists set lower near-term targets.

• Emily said 25%-50% is aspirational at WelcomeHome. She would be satisfied returning 20% of CSM time by mid-2027.
• Jeff said Unanet is still working toward 20% and could reach it within the next few quarters. Reclaimed time would expand customer coverage rather than reduce headcount.
• Lukas said the first 25% could come from automating repetitive manual tasks. The remainder would require AI handling of escalations, quarterly business reviews (QBRs) and risk signals.

WelcomeHome audits CSM salary as a share of ARR to size capacity

Lukas said bandwidth gains matter only if reinvested in larger customer portfolios, more expansion bookings or better GRR. Emily said WelcomeHome measured CSM salaries as a percentage of the ARR each manages. It used those numbers to evaluate capacity and adjust books so CSMs could take on more customers without risking retention. The team also times QBR completion with and without AI automation.