By Spencer Altman,
Head of Customer Success
What are the Customer Success KPIs?
According to the driving principle of Customer Success, the top KPIs for Customer Success are broken into three categories:
Customer success with solution
Vendor success with solution
These KPIs should be:
- critical to the success of your business
- drive the actions, projects and day-to-day tasks of your company’s cross-department customer success efforts
When it comes to the key metrics for customer success, we do not just want to know interesting facts about customers (X% of customers did this, or X% of customers use this feature, etc.).
Those facts can serve a purpose, but they are subordinate to the above mentioned KPIs. If they are not directly tied to the above mentioned KPIs, then you should seriously question whether they are worth your time when it comes to customer success.
We want to drive value, for customers and for the service provider. Do not waste time on bad metrics.
A bad metric is like bad sushi. You will pay for it later.
Example Customer Success Dashboard
Before getting caught up in the example and details of the numbers below, it is important that the driving principle behind Customer Success is clear.
The driving principle leads to the KPIs, and the KPIs lead to the main KPI dashboard. Below is just an example of it with example data.
This dashboard can be used to report on the current status, and also to help identify priorities for any given point in time. Each of the items in this dashboard should be business critical for an SaaS vendor. If they are not, then they should not be in the dashboard. Each KPI leads to potential questions and each question has potential actions/to do’s for marketing, sales, product and/or client services.
• If the pipeline for lead/upsell revenue is too low, then possible important questions to ask could be:
o Do we need more leads/upsell opportunities?
o Do we need higher value leads/upsell opportunities?
• If the quantity of leads in the pipeline is too low, then more leads are needed.
• If the revenue at risk for churn is high, then this may need to be moved up on the priority list.
• If the customer value from the solution is low, then efforts may need to be focused there, otherwise there could be mid- to long-term problems with churn sales and upselling.
Spencer Altman is Webtrekk's Head of Business Consulting. Since joining Webtrekk in 2009, he has been working with companies around the world to help them get the most out of their digital business. His journey in digital analytics began in 2006 as Business / KPI Analyst for weeworld.com, a social network based in the UK. Previously, he spent six years at Accenture in Business Process Consulting in Telecommunications. Spencer can be reached at firstname.lastname@example.org and followed on Twitter @spenceraltman.