10 Customer Success Metrics to Track- II

Customer success metrics are very essential for the proper execution of the entire plan. In fact, every step and decision you take should be based on data evidence. Companies do collect a lot of information on a daily basis from the customers. But it is important to know which data are crucial for mapping the customer success plan. You must also have a proper system of data analysis in place to help you out with your work. Are you confused about which data you need to track? While there are several metrics that need attention, there are few that are almost indispensable for the company. They are also recommended by leading company CEO’s worldwide.

We covered the first part of these metrics in the first part of this blog. You can read it here.

In this article, we are going to explore the remaining points. Read on to know more.

6.Qualitative Feedback from the Customers:

It is a crucial metric but can be a little difficult to collect. It is the only way how you can know the details of the issues faced. You must design questions for the customer in such a manner that the answers show you a clear cut solution. Constructive criticism should definitely be taken into account. Transparent communication is essential in this case. The first step is to look into the product and determine which could be pain points for the customers. Frame your questions in a way that you get to know which issue is causing more trouble. At the same time, give that space to the clients so that they can express their views on the product that you might not have thought of. It is important that you have an attentive team in place to go through the details of the queries. The product teams can then work on these issues and find a solution.

7.Conversion Rates:

Conversion rate is a very basic metric when it comes to calculating the real user engagement. But it works a bit differently in the case of B2B business or SaaS solutions. In case you have a free version and a paid version of your product, then you can track the number of clients who are actually converting to the paid plans. That will present the real scene of customer engagement for your company.

The conversion rate can be calculated simply by dividing the number of converted users by the total number of users. Conversion to a paid format of your product indicates that the loyal customer base is growing for your company. Paid format means more revenue. If you do not notice a very high conversion rate but a great user base, that means you need to upgrade your product. If the free version satisfies the customer needs completely then it can be harmful for the financial growth of the company. Some exclusive features must be added that would attract the customers to subscribe. This is also an excellent way to know which customers can give you high returns in the upcoming times.

8.Expansion Revenue:

Taking good care of existing customers is very important if you want to increase your upselling. Upselling is a very important part of expanding the business as well. If you want your business prospect graph to grow, you should consider looking at ways to upgrade the plans of your customer. If they are satisfied with your service, they will definitely want to partner with you for their future growth. The revenue that comes from this upselling is known as expansion revenue. It is calculated by dividing the upsell revenue by the revenue collected the previous month.

Carefully monitor which customers are willing to expand their business solutions with you. Also see which areas they need your maximum support. Design an offer based on the unique customer goals in mind. Make sure you are taking necessary steps to upgrade the relationship between the company and the clients.

9.Lifetime Value of a Customer:

The ultimate goal of the customer success plan is to ensure that your clients reach their desired outcomes by using your product. That way, the client is also going to have a better and long term relation with the company. The metric to quantitatively measure the value a customer adds in the entire contract period is known as the Customer Lifetime Value (CLV). It is measured by the following equation:

Customer Lifetime Value = (Average purchase value x Average purchase frequency rate) x Average customer lifespan

This value is very important to track. Ideally it should always display an increase in the graph over a particular time period. If it does, then you will know that the product is actually driving desired results for the customer. If it is going down, then you should reconsider your customer success plan. You can also use other metrics like qualitative customer feedback analysis to improve the scenario.

10.Resolution Rate through Customer Service:

Customer service is an integral part of any business. The quality of your customer service can make or break your business. So you should always be mindful about the kind of service you offer. This is also a driving factor when comparing two similar kinds of businesses with the same product or service. But how do you measure the quality? You can do it easily with the resolution rate tracking. The more precise metric here is the first contact resolution rate.

In this case, you have to see to it that when the customers contact your support numbers, majority of cases should be resolved in the first interaction itself. Get a percentage value by dividing such cases by the number of support calls attended. The greater the percentage, the greater is the customer’s satisfaction with your service. Though there are several differences between the customer service and the customer success plans, the service is an important metric included in the plan.

Get in touch with the leading customer success planning companies who can guide you to analyze your data to the best of your advantage.

Here were some of the commonly used customer success metrics that companies use. Do you think there are any missing important metrics? Comment it down below and we will add it to the list. Hope you got sufficient knowledge on the customer success metrics to track. Comment below about any suggestions or queries that you might have. For more information on customer success and other important topics like healthcare and technology, kindly subscribe to our blog. Do follow us on the social media handles for the latest updates.

 

 

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