I recently had the pleasure of being invited by François Decaux on his podcast CSMs & Co – episode #92, the leading Customer Success podcast in France. The topic: the Data Act and its concrete impact on the Customer Success Manager role.
I accepted this invitation because the Data Act is not just a regulation for lawyers. It is a paradigm shift for the entire SaaS customer relationship. And the first people affected are CSMs.
The Data Act, which came into force in September 2025, imposes new obligations on SaaS providers that directly affect their commercial relationship with customers.
The three pillars of the regulation are as follows:
An easier termination right to switch providers. Customers can now terminate their SaaS contract in order to switch to another provider, with a notice period capped at two months. This right applies even when a contractual commitment is in place. I detailed this mechanism in my article Data Act and SaaS contract termination: what is changing.
A mandatory data restitution and portability obligation. Providers must allow their customers to export all data generated through their use of the service — not just personal data under the GDPR. This includes logs, metadata, performance data and functional data. I had anticipated this topic in Data Act and SaaS: what providers need to prepare now.
The gradual elimination of switching fees. Costs charged to customers for migrating to another provider are now regulated and set to disappear. The principle established by the regulation is that data restitution should be free of charge.
Make no mistake: SaaS customers will use these rights. The Data Act gives them a legal lever they did not have before, and several signals show that the market is ready to act on it.
First, the economic context is pushing companies to rationalise their software spending. Procurement teams are increasingly challenging automatic renewals and looking for negotiation leverage. The Data Act provides one that is directly enforceable, without even needing to invoke a breach by the provider.
Second, law firms and in-house legal teams are starting to integrate the Data Act into their renegotiation strategies. I personally assist SaaS customers who want to terminate their contract by activating the Data Act switching right. This is no longer theory — it is a movement that has already begun.
Finally, the growing maturity of competing offerings makes the decision to switch easier. When a customer is weighing whether to stay or leave, the removal of contractual and technical barriers can tip the balance. Providers who have not anticipated this dynamic risk discovering it at renewal time — and by then it will be too late to react.
The Data Act does not only change the customer relationship: it directly impacts the business model of SaaS providers. The market values SaaS companies based on their ARR (Annual Recurring Revenue) and the predictability of their recurring income. Valuation multiples of 3x to 7x ARR are common in the sector.
Yet the entire logic of the Data Act — easier termination, free portability, end of lock-in — undermines this predictability. If churn increases because customers can leave more easily, NRR (Net Revenue Retention) drops, and with it, valuation multiples.
For CSMs, this is a powerful argument to escalate internally. Investing in the quality of customer support and the value delivered is no longer just a matter of satisfaction: it is a company valuation issue. Customer Success becomes a pillar of financial performance.
This is precisely what we explored with François Decaux on the podcast. CSMs are the day-to-day contacts for customers. They are the ones who detect churn signals, manage renewals, and face migration or termination requests.
With the Data Act, a dissatisfied customer now has a concrete legal lever to leave. No need to wait for the end of the commitment period. No need to negotiate an amicable exit. The switching right is a standalone right, directly applicable.
For CSMs, this means that retention can no longer rely on contractual lock-in mechanisms. Technical or contractual lock-in is no longer a viable strategy. Loyalty now depends on the value delivered, the quality of support, and trust in the relationship.
This is one of the key messages of this episode: compliance with the Data Act is not a constraint — it is a commercial opportunity. A provider that anticipates these obligations and integrates them transparently into its contracts and processes sends a strong signal to its customers and prospects.
In practice, this can involve:
Updating your terms and conditions to incorporate the switching right (I discuss this in my article on SaaS T&Cs and self-service).
Clearly documenting the data export process, including usage data that belongs to the customer.
Training CSM teams on the new customer rights so they can respond confidently to requests.
Structuring a transparent transition process in the event of departure, preserving the relationship even in case of termination.
The Data Act does not stand alone. It is part of the European digital strategy alongside the Digital Markets Act (DMA), the Digital Services Act (DSA) and DORA (Digital Operational Resilience Act). For SaaS providers selling in Europe, the regulatory burden is increasing and now covers every aspect of the business: data access, interoperability, resilience, cybersecurity.
This context reinforces the importance of integrating compliance into the company’s overall strategy rather than treating it on a case-by-case basis. Providers with a structured approach — up-to-date contracts, documented processes, trained teams — will have a clear edge over those who experience each new regulation as an isolated constraint.
1. Understand your customers’ rights. The Data Act gives your customers a specific termination right to switch providers, with a maximum two-month notice period. Knowing this right allows you to discuss it confidently, rather than discovering it when a termination request lands on your desk.
2. Identify at-risk accounts. A dissatisfied customer or one in a budget rationalisation phase now has a legal lever to leave. Get ahead by identifying accounts where the commitment relies more on the contract than on perceived value. These are the most vulnerable.
3. Prepare a proactive narrative on portability. Rather than waiting for a customer to request a data export, integrate portability into your Business Reviews. Show that your provider is transparent and compliant. This is a powerful trust argument at renewal time.
4. Document the data export process. Work with your product and technical teams to ensure the data restitution process is clear, documented and accessible. The smoother this process is, the more it reassures customers about the quality of your solution — and paradoxically, the more it makes them want to stay.
5. Turn compliance into a renewal argument. During your renewal discussions, highlight your provider’s Data Act compliance as a differentiator. If your competitor has not updated its contracts or processes, that is a risk for the customer. Your compliance becomes a tangible competitive advantage.
If you are a CSM, Head of CS, or work at a SaaS company, I recommend listening to this episode. François Decaux asks the right questions and we were able to address the topic in a very concrete and operational way.
👉 Listen to episode #92 of CSMs & Co
The episode is available on Spotify, Apple Podcasts, and all other major platforms.
I help SaaS providers bring their contracts into compliance with the Data Act. If you want to anticipate these obligations, update your terms and conditions, or structure your customer transition process, get in touch.
To go further on the Data Act and its implications for SaaS providers, you can also read:
→ Data Act and SaaS: what providers need to prepare now
→ Data Act and SaaS contract termination: what is changing
→ Early termination of a SaaS contract: what rules apply
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