Customer success teams in all businesses constantly strive to help the customers to achieve their desired objectives and goals. However, how do we know if the efforts your customer success teams are taking are having the desired effects? Or are there any metrics that show whether or not customer success has been well and successful? Or which customer success metrics in your easy to use CRM really matters?
THE DIFFERENCE BETWEEN A METRIC AND A KPI
Although your customer success teams should be chasing both Metrics and KPIs using easy to use CRM software, it is not always clear where one terminates and the other begins.
Now according to Tracy Rabold in her blog “KPIs vs. Metrics” it states that:
“Metrics are simply numbers that gauge some type of behavior. KPIs are metrics that shows some key result or objectives you’re trying to reach. So even though all KPIs are definitely metrics, but not all metrics can be considered as KPIs,”
Therefore, as KPIs pertaining to customer success are tied to greater company-wide goals and initiatives, KPIs differ drastically from organization to organization, while metrics are more general measurements that are utilized to generate strategic decisions in the context of particular KPIs.
This is the reason, as to why customer success metrics are shared across companies for finding business growth.
Hence, here is a list of all the major KPIs used for measuring customer success in businesses that can be calculated using easy to use CRM software:
METRICS PERTAINING TO REVENUE
Revenue is a key factor that determines the growth of any business and customer success should be added to your company’s bottom line.
This is because when customer success teams generate more revenue by retaining and expanding on-hand accounts in the CRM database than is lost from factors like churn, they transit from a cost-center to a revenue generator for any business.
• Net Churn
This metric is the most straightforward means to quantify the impact of your customer success teams. Measuring Net Churn provides Customer Success teams to find a quick pulse on all revenues generating from existing customers.
In fact, a strong negative and down beaten Net Revenue Churn implies that a company’s revenue would amplify even if there are no fresh or new sales.
• Retention Rate
This metrics shows the percentage of customers who are ready to extend their contact with your brand when they are up for renewal, as losing a renewal implies your business has lost revenue that you could previously depend on.
In fact, businesses that operate on multi-yearly or annual contracts like easy to use CRM software and other SaaS applications need to monitor their Retention Rate along with the renewal timelines to make sure that they do not get caught off guard by low Retention Rate.
• Expansion Revenue
This metric is directly tied to the success of your customers and since happy customers purchase more (and unhappy customers buy less) Expansion Revenue metrics provides insights into how much value your brand is delivering to its customers.
In fact, Customer Success teams should view expansion as a value-extension they deliver to the customers on a day-to-day basis, which helps in avoiding pushing hard for a forced sale.
METRICS PERTAINING TO PRODUCT USAGE
It does not need much to understand that customers are unlikely to receive value out of your offering if they are not using it.
Therefore, driving feature adoption and usage will help customers to receive the meaningful and long-term value from your offering.
• Usage Pattern
Every product or service has usage patterns and behaviors that are unique to it which results in holding back successful customers.
Customer Success teams most often encourage users to develop these behaviors by optimizing supporting proxy metrics.
For example with easy to use CRM, they include key feature usage, the volume of API calls or installation of integrations and others.
• User Skill Level
If the users of your offerings are only scratching the surface of what your offering(s) can do, it is unlikely that your business will be able to derive sufficient long-term value and revenue from your customers.
Therefore, addressing the root cause of your customer’s problems and deepening their perceptions of how your offering(s) can uplift their problems and issues makes your offering more than just another tool in their toolbox.
Hence skill level metrics include how many key features the user has used in your product or service, their usage frequency and the outcomes delivered by using your offerings.
METRICS PERTAINING TO CUSTOMER SENTIMENT
Trying to gauge how your customers feel about your offerings and your company can be as tough as cracking a safe. Nevertheless, it is extremely important to measure if your brand is meeting the customer’s expectations and creating new brand advocates for business growth.
• NPS (Net Promoter Score)
NPS is by large the most popular method of measuring customer sentiment for brands. This is because NPS provides an all-encompassing rate of user sentiment, even though there is no systematic way to dive into the user’s NPS (by reaching out and ask for additional feedback), which makes it hard to attribute the resulting NPS scores exclusively to the Customer Success teams.
• The Volume of Support Tickets
Support ticks are critical signals that indicate friction between the users and the offerings. Even though users of your products and services reaching out to your Support teams is not always a bad thing, nevertheless high volume of support tickets can signify important issues at the core of these requests.
Now the distinction between Customer Success and Customer Support is that Customer Success is proactive in nature, and so low volume of support requests signifies that your Customer Success teams are proactively addressing the problems even before your customers have a chance to submit a support ticket.
• Quality of Relationships
Quantifying the quality of your Customer Success team’s effort in building relationships can be challenging.
However, as we all know that building relationships is crucial for the growth of any business, and that one to one human interactions drives meaningful change, creating a quantitative quality measurement of your customer relationships provides a robust leading indicator that can be measured by the rate of churn for rapid business growth.