10 Metrics You Should Track For Customer Success
- Datameer, Inc.
- August 11, 2022
Customer Success is a word we hear now and then in the marketing space. What does it mean, and why is it important? Let’s look at 10 Metrics You Should Track For Customer Success.
This article will explore the concept of customer success, examples of CS metrics, the importance of Customer Success, and how to get started measuring Customer Success KPIs using the Datameer Platform.
What is Customer Success
Before we dive into the meaning of this popular marketing term, let’s define success first.
According to an article by Success consciousness, success can be defined as the favorable outcome of an action.
In marketing, the definition of success may differ depending on the function of the department or business.
For example, in the sales department, success could be defined by customer acquisition and CRM workflow. For customer service, success could be a good performance on customer support KPIs, etc.
You start to see the idea…
Unlike the previous success metrics referred to above, Customer Success is the one strategy that cuts across and unites the organization.
It helps the entire organization to focus on the customer and customer value.
So, what’s Customer Success?
Anne Ting (SVP Marketing at Totango) defines Customer Success as a customer-centered growth strategy that maximizes customer lifetime value.
Why Do I Need Customer Success
Customer Success involves developing a proactive and scalable approach to maximizing the client’s and your business’s value.
Although different companies may have many strategic goals for customer success, there are three main objectives for customer success.
1. Powering Organic Growth:
Your customers want to realize value from the products and services they have acquired from you.
By providing a proactive, consistent and relevant engagement model that helps them realize that value, you build loyalty, improve customer retention, and lay the foundation for fueling new acquisition growth models.
2. Increasing Customer Centricity:
Previously, we stated that customer success is one strategy that unites your whole business, i.e., measuring CS can help your entire organization ensure your customers are at the center of whatever you do.
This can help the individual business segments become more accountable and ultimately improve your customers’ experience.
3. Improving Margin and Efficiency:
Increasing customer lifetime value requires driving higher net revenue retention without proportionately increasing the operating costs.
Companies that cover every single revenue activity with a sales model absent customer success are most likely spending a lot of money.
Implementing customer success and measuring it appropriately is the most cost-efficient growth model.
Best Practices for Customer Success
Customer success is a crucial driver for your company’s growth, BUT to achieve that growth, some core capabilities need to be in place to enable the CS measurement system and operating model to realize that growth.
A few of these are:
- Creating and leveraging a digital view of your customer to create actionable insights.
- Generate Flow(innovation, execution, and speed) from process excellence and standardization.
- Reduce Friction with a clear orchestration model.
- Iterate rapidly to drive even more outstanding results.
- Leverage the full power of your entire enterprise to deliver success for your customers
- Build the right team, the right skills, and the right culture.
10 Metrics You Should Track For Customer Success
If you have a measurement system in place already, here are a few examples of significant success measurements you could start with.
Although it isn’t comprehensive, it’s an excellent place to start if you want your brand to become data-informed.
CLV measures a customer’s value to your business throughout the entire relationship, not simply individual purchases.
2. Renewal Score
In its most basic form, the Customer Renewal Rate is measured as a percentage of customers who renew in a given year. It is a reliable predictor of client satisfaction.
3. Monthly Recurring Revenue
A crucial financial indicator for businesses with a subscription-based business model. It is a measure of predictable revenue or income that firms can expect each month. It is determined by how many people utilize your service and how much they pay each month.
4. NPS Score
NPS is a customer’s likelihood to suggest your good or service to others on a scale from 0 to 10. It is used as a measure of customer loyalty and satisfaction.
5. Customer Retention Ratio
The rate a business has held clients throughout time.
6. At-Risk Churn
Revenue churn is the monthly recurring revenue (MRR) you lose because of cancellations and /or downgrades each month.
7. CX Score
Is a metric that puts intricate qualities on a brand’s CX and frequently works hand in hand with measurements such as Net Promoter Score (NPS), Customer Churn Rate (CCR), and Customer Satisfaction Score (CSAT).
8. Average Time On Platform
Average Time on Page is a web analytics metric that monitors and measures the mean amount of time spent on a single page by users of a site.
9. Qualitative Customer Feedback
Customer feedback metrics are estimation units that let us quantitatively survey our online customer feedback.
10. Customer Health Score
Although deciding on a scoring system is subjective and usually varies from company to company, customer success teams generally use a customer health score to determine whether customers are healthy or at-risk.
How to Get Started: Customer Success Analytics in Snowflake
In the previous section, we discussed best practices and 10 metrics you should track for Customer Success.
The first point was creating and leveraging a digital view of your customer; One way this can be achieved is by deploying scalable and robust analytics software or technology. E.g., a marketing data warehouse.
Marketing DW such as Snowflake presents us with tools to consolidate our customer success data and analyze and report on it.
Datameer (On Snowflake) is a tool that provides access to a Snowflake data warehouse with the ability to make simple transformations and joins without requiring any coding.
Want to know more?
Check out a quick demonstration on how to generate quick insights on customer success data in Snowflake using Datameer.