Every company will have unique metrics they can use to measure the success of their Customer Success Team and the usage of their clients on their product. These will vary and may be incredibly specific depending on your industry and customer lifecycle.
Regardless of the minutia of
- Expansion – Upsell and cross-sell rate. Be mindful of not applying these measures in situations that don’t warrant it. If you have a limited product suite, it can be difficult to up-sell for example.
- Retention Rate or Churn Rate – Reducing churn and increasing retention is an easy metric to indicate how well a Customer Success Manager is performing, but not the end-all.
- Adoption Rate– How quickly customers become experts for example. Be sure to clearly define what adoption is and how it’s being measured first.
- Average Revenue – The average revenue a Customer Success Manager holds, monthly (MRR), quarterly (QRR), annually (ARR) or whatever measure makes sense. Keep in mind if your product has widely variable price points this may not be a great measure of a Customer Success Managers ability.
- Net Promoter Score (NPS) – Typically obtained through a survey sent to your customers. A higher NPS indicates a greater level of satisfaction overall.
- Customer Effort Score (CES) – Also obtained via a survey, you want an answer of 1 on this, indicating that the amount of effort required by your customers to accomplish something is low. This helps to pinpoint issues on along the customer journey as well.
- Referrals – Customer advocacy goes hand in hand with Customer Success. A happy customer will say good things to their colleagues about your product. Reviews and case studies help drive this, just make sure you’ve crafted a way to track referrals before you get too far.
- Support Tickets – A lower number of support tickets [hopefully] indicates that your Customer Success Team is doing their job well and the customer is humming along happily and confidently. Be careful though, a lack of support tickets could also mean that customers are not asking questions or not using the tool enough to run into problems.
- Milestones Completed – If you’ve identified clear milestones along your customer lifecycle that have value and indicate a level of success, competency or ROI for your client, measure and record these.
- Product Metrics – Hopefully you’ve built tools and metrics into your product that allow you to see things like logins, clicks, or duration on areas of your product. From here you can craft measures that indicate good or bad things. This also provides a starting place for conversations, “I see you haven’t logged in for over two weeks…”.
What KPIs does your organization use? Is there something I’ve missed that you think should be on this list? Start a conversation in the comments below!