How Can You Gauge Your Company's Customer Success Management?
Pinpointing key performance indicators on customer success management isn’t always black and white. If you’re struggling to measure your company’s customer success, these business experts point out all the various ways you can gauge.
Keep reading to find a method that may be better than your current indicators.
Bridget Chebo Enggasser
Customer Effort Score (CES) and Net Promoter Score (NPS)
The best way to measure the performance of your customer success manager is to calculate revenue growth on each account over time. When monthly and net recurring revenue increase, you can bet that your clients are happy because they continue to spend more with your company and adopt more products or services. It will also highlight whether your customer success manager has been effective at controlling costs.
However, in these tight economic times, it's important to balance revenue metrics with other performance indicators. Many businesses are tightening budgets, and it may have little to do with the performance of your customer success team and more to do with factors outside of your control. Still, the most effective customer success managers are seen as partners to your clients, and that will enable the clients to look at your ongoing relationship as a driver of revenue and net value creator rather than just an expense.
Take a look at some supporting measures such as percent of new clients who successfully onboard, renewals, upselling, and length of the client relationship. The most skilled customer success managers will retain important clients even during a downturn.
Additionally, you'll want to measure the success of the relationship through traditional measures such as Net Promoter Score (NPS), customer satisfaction (CSAT), or, my favorite, easiness (CES). The customer success manager is responsible for forging a close relationship with your clients, and referral opportunities are on the line.
When the relationship is very healthy, clients may be willing to introduce you to key players in other departments or organizations or be featured in a case study on your website. When you frequently ask the client for feedback on the relationship, and specifically the customer success manager's performance, you'll get real insights and have the opportunity to fix issues before they become big problems.
For anyone in a leadership role, it's important to measure the engagement of their direct reports. An anonymous employee survey performed regularly (quarterly or semiannually) is a great way to understand how effective your customer success manager is at motivating and developing members of their team. An engaged team will work harder for your clients and be more productive.
Why it's important:
Your customer success manager is the face of your organization to your clients. Their success is your success (and vice versa), so it's imperative to measure their effectiveness adequately. Customer success managers are intimately involved in the businesses of your important clients, and usually, this involves juggling many projects [and] different objectives, balancing the personalities and needs of both clients and direct reports.
They crave feedback and support just like any other members of your organization, so having clear goals and objectives and sharing regular feedback is essential to keeping them motivated and engaged. It can be difficult to transition the customer success manager with a happy client, so it pays to let your high-performing customer success leaders know how much you value them by engaging with them on their performance and career goals.
Berry Moise
Customer happiness and retention
Several indicators point to how effective a business' customer success management is. Customer happiness, retention, lifetime value, referrals, and engagement are the most widely used KPIs. Organizations can better target improvement efforts, monitor development, and compare results by measuring these indicators. A thorough understanding of the efficacy of customer success management can significantly aid a company's ability to optimize lifetime value and boost customer happiness. The ability to track and analyze data on customer success is essential for any business that wants to understand how they are doing to satisfy their clientele.
Ibrahim Mohamed
Conducting customer success surveys
Measuring the success of your company's customer success management is essential to understand the impact of customer engagement and support strategies and to make data-driven business decisions.
One of the most critical metrics to track is customer retention, which can be determined by monitoring the percentage of customers who continue to use your service or renew their subscriptions. Additionally, conducting customer satisfaction surveys and analyzing metrics such as customer lifetime value and customer churn can provide valuable insights into the overall customer experience.
Another way to measure success in customer success management is by tracking customer engagement levels and monitoring metrics such as the number of tickets raised, resolution time, and customer feedback. This can give a more detailed insight into the customer's experience and help identify areas that need improvement.
Measuring the success of customer success management efforts is essential to ensure that your company is providing the best possible service to your customers and, ultimately, driving business growth.
Nabiha Akhtar
Customer lifetime value
One helpful metric for analyzing the success of your company’s customer success management is customer lifetime value, which is essentially the amount of money any one customer is expected to spend with your business throughout your customer relationship.
In basic terms, this metric equates to customer loyalty and, thus, customer satisfaction. Your customer success management should have a solid grasp of this metric in order to streamline the customer service experience that you’re offering.
Jon Stephens
Response times and resolution rates
There are various metrics that can be used to gauge how successful a company is at providing customers with excellent service. This includes customer satisfaction surveys, response times, resolution rates, and Net Promoter Score, which measure how likely customers are to recommend products or services. Not only does this help determine performance in the present, but it also allows businesses to identify areas of improvement for the future. By addressing customer needs and issues now and staying up-to-date on customer preferences, businesses can ensure they remain competitive in the ever-evolving market.
This is a crowdsourced article. Contributors' statements do not necessarily reflect the opinion of this website, other people, businesses, or other contributors.
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