Tracking customer success KPIs is a critical component to ensuring your team is focused on the right areas that guide your users to success with your product. There are likely many KPIs and metrics your team is keeping track of, but here are our top four.
Customer Success KPI #1: Churn Rate
Churn is the defining factor of a SaaS company’s ability to retain customers—a pivotal measure of the growth potential of a company. In an article on the importance of churn, David Skok explains that as a company grows, “that loss of revenue requires more and more bookings coming from new customers just to replace the churn. As a result, growth slows substantially.”
This is where customer success can really shine. Not only can great customer success teams retain customers, but they can take the lead on account expansion and referrals, which can dramatically offset inevitable churn and even achieve negative churn (when the expansions, up-sells, and cross-sells to your current customer base exceed the revenue that you are losing due to churn).
Customer Success KPI #2: NPS Score/Customer Sentiment
Perhaps the most common and most standardized metric in customer success is sentiment. Customer sentiment is measured through a quick NPS (Net Promoter Score) survey asking customers how likely they are to recommend this product to others. This helps measure customer satisfaction and loyalty and also lets customer success teams know what they can do to improve and who is prime for referrals.
Most companies implement NPS surveys via email, but we choose to deliver them inside our web-app, using best practices and strategies, where customers are most receptive. Our customers have seen great success with this method (MedReps saw a 70% increase in survey completion rates in just 10 days using in-app messages over email).
Customer Success KPI #3: Activity Level
Our customer success team keeps a close eye on user activity levels. This not only shows them who is inactive (and therefore at risk for churn) but also shows where a user might be stuck or confused inside the app. This information helps them chart a course for correction through relevant messaging campaigns like guided tours or feature callouts. Appropriate activity levels will inevitably vary between companies, but login frequency is a key variable for us.
Customer Success KPI #4: Product Utilization
We also care a great deal, as most SaaS companies do, about measuring product usage analytics to help us ensure the product we’re building is actually being used and used as intended. For us, this is made up of three key factors:
Feature Usage measures what features customers are using in the application. You want to make sure your customers are using the stickiest features, including integrations. Feature adoption measures how well customers adopt new features as they roll out.
Depth of Usage measures the percentage of the product being used and can indicate whether a customer is getting the most out of it. The more features a customer is using, the more invested they are in the product.
Breadth of Usage measures how many users or licenses (or seats) a customer has logging in on a regular basis. For us, this isn’t perfectly weighted against the others because an account can have any number of users and still be perfectly healthy, but the more users in an account, the more buy-in your product has.
Customer Success is much more than a checklist; it has real impact on the success of the company itself. From company to company, it looks different and it’s constantly evolving, but having a few solid KPIs as guides can help your team stay ahead of churn and work toward growth. You can read about these KPIs and more in our Complete Introduction to Customer Success.