Customer Success is the business methodology of ensuring customers achieve their desired outcomes while using your product or service. In the process, the company anticipates customers’ challenges, needs, and proactively provides solutions to those issues prior to them arising. Customer success helps you boost customer happiness, retention, and increasing customer loyalty. Effective this strategy also results in decreased customer churn and increased upsell opportunities.
Essential Customer Success KPIs:
There are a number of ways to measure the success or failure of a customer success program. Whichever KPIs an organization uses, it’s important to keep in mind the importance of measuring value delivered to both customers and an organization. Here are three customer success KPIs that capture internal and external value well:
- Customer Churn Rate: Churn rate is simply the number of customers that unsubscribed from your service (or stopped buying your product) over a period of time divided by the number of customers you started with.
- Net Promoter Score (NPS): For any organization, the extent to which its customers would recommend their product or services is an important metric. Net Promoter Score measures this sentiment and offers an aggregate score for companies to keep an eye on.
- Customer Lifetime Value (CLTV): Customer lifetime value (CLV) represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime. CLTV is an important metric that helps you make decisions about how much money to invest in acquiring new customers and retaining existing ones.