Robert Statsky

What KPIs Should I track as I manage my team?

Establishing which metrics to track is critical in any role at any company. In CS, the most common metrics are churn rate, net revenue retention (NRR), gross (logo/base) revenue retention (GRR), customer satisfaction, NPS, Monthly recurring Revenue (MRR), Annual Recurring Revenue (ARR), ACV (Average Contract Value), LTV (Lifetime Value), or the ration LTV/CAC (Lifetime value / Customer Acquisition Cost).

Now most of those above metrics should be established if there is already a customer success org and the company has been setup. In my experience these will already be tracked somewhere by someone whether its the CEO, CFO, COO, CRO, Head of operations, or some other senior person who is responsible for the numbers.

Having dashboards that show each, or at least the closest possible estimates is critical. There is a wealth of data available on each any every one of those metrics and opinions on all of them.

Its important to track the metrics you are goaled on, and what drives the business forward.

Get an understanding of what you are being hired to do, and what is necessary for success in your role, and make sure you are able to report on those.

In terms of individual team metrics, its critical to roll those out with your team according your customer success engagement model. Ask yourself:

-How am I being measured?

-What is most important to determine impact?

-How do we increase customer health and adoption?

Don’t get caught in the QBR (Quarterly Business Review) trap. Customers don’t enjoy them, and are not engaged for them. If you must do one, put it together with a quick loom or vidyard and send it over. Offer your time after if they have additional questions, but working to get through scheduling hell so someone can sit on the call and not listen is not a good use of CS time or customer time.

Employees use sometimes upwards of 100 pieces of software in their jobs. Each company has a CSM trying to “catch up.” Don’t waste their time and just provide them the value they signed up for.

For activity metrics I like to track:

-Accounts touched (interacted with daily weekly monthly). This could be a check-in/audit on the account, an email a phone call or a zoom meeting

-Account plans created

-Zoom meetings held

-Improvement in healthscore

-Logo Retention

-NRR Retention

That should be the absolute starting point for any team. Try to find those metrics and then you can at least get a sense of what is happening and what your team is doing daily, weekly, monthly.

As always, here is what Chat GPT tells us to look out for:

As the head of a Customer Success Team at a SaaS company, tracking key performance indicators (KPIs) is essential to measure the team’s effectiveness in ensuring customer satisfaction, retention, and overall success. Here are some critical KPIs to consider:

1. Customer Satisfaction (CSAT):
   • Measure customer satisfaction through post-interaction surveys or feedback mechanisms. CSAT provides insights into how well your team is meeting customer expectations.
2. Net Promoter Score (NPS):
   • Assess the likelihood of customers recommending your SaaS product to others. NPS is a valuable indicator of customer loyalty and the overall health of your customer relationships.
3. Churn Rate:
   • Track the percentage of customers who cancel or do not renew their subscriptions. Churn rate is a crucial metric for evaluating customer retention and identifying areas for improvement.
4. Customer Retention Rate:
   • Calculate the percentage of customers retained over a specific period. A high retention rate indicates strong customer loyalty and the effectiveness of your customer success efforts.
5. Expansion Revenue:
   • Monitor the revenue generated from existing customers through upsells, cross-sells, and additional feature adoption. Expansion revenue is a key factor in driving overall business growth.
6. Customer Lifetime Value (CLV):
   • Evaluate the total revenue a customer is expected to generate throughout their relationship with your company. CLV helps in strategic decision-making and resource allocation.
7. Time-to-Value:
   • Measure the time it takes for customers to realize value from your SaaS product. Reducing time-to-value enhances customer satisfaction and increases the likelihood of long-term retention.
8. Onboarding Completion Rates:
   • Track the percentage of customers who successfully complete the onboarding process. Effective onboarding is critical for customer success and contributes to long-term satisfaction.
9. Customer Health Score:
   • Develop a customer health score that takes into account various indicators such as usage patterns, support tickets, and customer feedback. It provides a holistic view of customer well-being.
10. Renewal Rate:
    • Monitor the percentage of customers who renew their subscriptions. A high renewal rate indicates strong customer loyalty and satisfaction.
11. Customer Effort Score (CES):
    • Evaluate the ease with which customers can achieve their goals when interacting with your team or product. CES measures the overall customer experience and identifies areas for improvement.
12. Feature Adoption Rates:
    • Assess the adoption rates of key features within your SaaS product. Understanding which features are most valuable to customers helps tailor engagement strategies and communication.
13. Upsell and Cross-Sell Conversion Rates:
    • Track the success rates of upselling and cross-selling efforts. This KPI measures the team’s ability to identify opportunities for additional revenue within the existing customer base.
14. Response and Resolution Times:
    • Monitor the time it takes for your team to respond to customer inquiries and resolve issues. Timely and efficient support contributes to overall customer satisfaction.
15. Customer Feedback and Testimonials:
    • Collect qualitative feedback and testimonials from satisfied customers. Positive customer stories can be powerful marketing tools and indicators of success.

Regularly analyzing and acting upon these KPIs will help your Customer Success Team proactively address customer needs, optimize engagement, and contribute to the overall success of the SaaS company.