10 Customer Success Metrics You Should Measure
When analysing and gauging how your business is doing, most companies focus on looking at activity-based metrics but this is fast changing. Now, companies also need to look at metrics that help calculate and capture the relationship with your customers.
Measuring these new metrics opens up new opportunities for businesses and helps them in maintaining long, fruitful relationships with returning customers. Understanding customer behaviour, their interaction with your company, and how they are benefiting from your products and services are some customer success metrics that matter more than ever.
Take a look at this list of metrics that can be very beneficial for your company and make sure you are tracking them!
Customer Churn Rate
We all know that doing business with existing, loyal customers is much easier than searching for new leads to create business opportunities. This is why measuring the churn rate of customers based on each rep’s performance can help you check how successful customer service reps have been at their jobs.
To have a fruitful relationship with customers, reps need to maintain a constant, helpful conversation, making sure the customers are happy with all aspects of the services provided. Customer service reps who have such healthy relations experience a lower churn rate than reps that don’t.
Customer Health Score
Make sure your products or services add value to your customers. When working with customers these days, it’s not just about making the sale, you also need to ensure you have a good connection with them and can help their business do better. When measuring Customer Health Score, look at factors such as how the customer is using your product or service, how successful have they been after implementing it, if they found the solution they were looking for, and whether it has had an impact on their business.
You need to look at the big picture and analyse how your product can increase your existing revenue as well as influence new sales based on its success. Under this metric, you are basically calculating the effects of your products or services based on the “health” of your customer’s business.
Qualitative Customer Feedback
With various places to leave feedback on the internet, companies need to monitor the feedback people leave for them, whether positive or negative. Customers like having a voice and allowing them the space to display how they feel about your company or your products and services, lets you better understand how your company is doing.
Analysing qualitative feedback left from customers also help you right your wrongs and catch a customer before they completely stop using your service. This is also a great way for using survey or questionnaire responses to see how well customer service reps are working.
First Contact Resolution Rate
A study shows that the churn rate can be reduced by 67% if the customers’ problems are solved in the first interaction itself. This statistic shows how important it is to solve the problems your customers are having and give them first priority.
First Contact Resolution Rate helps you determine how many customer issues were solved in the first call and this also helps analyse your reps performance and problem-solving skills. If the percentage is high, then your reps are on top of things but if not, you need to look into why customers’ needs aren’t being resolved promptly.
Customer Lifetime Value
One of the most basic and important metrics to measure for any small or large business, Customer Lifetime Value helps you determine the total revenue a particular customer can generate for your business throughout their time with your company.
Measuring Customer Lifetime Value helps you understand the “value” of your customers. If their value increases, your products and services are helping them but if it decreases, then you need to reevaluate your services and products offered to them.
Net Promoter Score
If a customer is happy with your service, they will surely return to you for business. This fact comes as no surprise and based on this it is important to ensure your customer service reps are on top of their game and can maintain beneficial relationships with them. When measuring customer satisfaction, you don’t just measure how happy the customers are with the reps, but also with the brand and what they offer.
Net Promoter Score is a way of measuring and analysing customer satisfaction by simply finding out whether the customer is likely to recommend your company and services to someone else. The reps relationship plays an important role here as they are the point of contact.
This metric provides a qualitative as well as quantitative feedback since it asks customers to rate you on a numeric scale and also asks for an explanation for their choice, allowing you to measure the Net Promoter Score based on numbers and feedbacks.
Customer Satisfaction Score
Similar to the above Net Promoter Score, Customer Satisfaction Score also aims at finding out how happy customers are with your brand, products, and services. It differs in one aspect that is Customer Satisfaction Score asks customers to simply rate their experience with the company, instead of the likelihood of referring you.
Customer Retention Cost
It’s great if your products and services are effectively helping your customers and their businesses, but you also need to know how much money you are spending to retain the customers and if it is worth it. Make sure you are cost-effectively managing your customer success efforts by measuring Customer Retention Cost.
This helps you get a total estimate on what you are spending when it comes to your customer success programs and what is the total amount of your customers at the time. By having this analysis at hand, companies can make smarter decisions and determine how to use and allocate the funds for retaining customers.
Monthly Recurring Revenue
Analysing the Monthly Recurring Revenue is especially beneficial for SaaS businesses who work based on a subscription model with customers. When measuring this metric, it helps you find out and analyse the increase in your customer base and their spending since they have started using your services.
This analysis will help you outline how much money customers are spending on your services on a month to month basis. You can also check Expansion Monthly Recurring Revenue, which shows the additional revenue your company is generating through upgrades and customer loyalty programmes.
Another important metric for SaaS businesses to track, the Renewal Rate refers to how many of your customers are renewing their subscriptions with you each month or year. A high renewal rate indicates that customers are benefiting from your services, while the opposite will need you to look into why customers aren’t succeeding with your help.
This analysis also provides an opportunity for companies to better understand and evaluate their products and services, while also investing in product development and customer success programs to create a long term relationship with customers.
These above-listed customer success metrics are extremely important and easy to track. Make sure your company takes advantage of these new ways to communicate with customers and increase the time they do business with you to create fruitful relationships!
Using a Customer Relationship Management system can help you track these metrics easily and accurately. Get in touch with FIVE CRM to understand how such software can help.