5 Customer Success Metrics That Impact Your Business Performance
5 Customer Success Metrics That Impact Your Business Performance
o you know how satisfied your customers are with your service? Well, if you feel that customer success metrics is mere numbers, think again! In reality, customer success metrics largely depends on the company mindset and culture. But, how do you measure how well your business is doing? Or how successful your customer support efforts are? Of course, by creating customer lifetime value. Believe it or not your business health score increasingly depends on the productivity of your customer support team. Gone are the days when sales and renewals used to define business success. Today, what matters the most is providing a positive customer experience that creates a happy customer. The result? Recurring business revenues in the long run!
Needless to say, every target market has its own way of engaging with customers on a personal level. However, it totally depends on how you plan to use the data and focus on what matters the most.
What is Customer Success metrics?
Essentially, customer success equates to customer satisfaction. Therefore, it’s crucial to optimize your customer service performance if you want to improve customer satisfaction levels. Consequently, customer success metrics refer to the kind of customer experience that you are delivering. This includes patterns, trends, numbers that provide insights on performance gaps and scope for improvement. Precisely, three main factors determine customer success metrics –
Your product quality and its usability
How successfully you streamline your efforts to manage customer relationships after the initial sale.
The kind of support, training, and resources that you provideto achieve customer satisfaction at a higher level.
Why would you care about customer satisfaction metrics?
Did you know that 13% of dissatisfied clients will spread the message via word-of-mouth marketing to more than 20 people? Indeed, it really matters how your customers perceive you. Hence, if you are not tracking the customer satisfaction metrics, your current situation of the business is nothing but merely guess work. After all, how do you know if your business is growing, stagnant or on a downward trend? To make sure that you are moving ahead in the right direction, it’s critical that you focus on the customer success metrics. So, you should care about customer satisfaction metrics because –
If you cannot measure, you cannot manage
You cannot decide what to prioritize next
You will never know if you are in the right track
Still not convinced. Here are 5 crucial customer care metrics to look out for that can help you find new opportunities and build strong customer relationships.
1. Customer Satisfaction Score (CSAT)
Did you check the customer satisfaction level metric of your products orservices? Well, mostly expressed as percentage, score, or smileys, the customer satisfaction score is a quick survey that measures short-term happiness rated by the customer. Suppose giving a response on a 1-7 scale while rating the overall satisfaction with the product is a customer satisfaction score. Whether it is business, purchase or interaction,satisfaction surveys are an excellent way to gauge customer happiness. If the experience is not satisfactory, there’s always an opportunity to act and repair.
2. Net promoter score (NPS)
NPS is a popular customer feedback tool for many businesses. By investing in NPS, not only you can identify the most loyal customers but also create loyalty programs for customer retention. This will help you increase customer lifetime value.
The net promoter score is nothing but the customer satisfaction benchmark that impacts your brand performance. This can be done by checking the loyalty of customer relationshipsthrough thenet promoter score. Indeed, this is as simple as asking your customer “how likely will he/she recommend your products to friends, family, or colleagues on a scale of 0-10.
Those who score 0-8 are Detractors
People who score 9-10 are the Promoters
3. Customer Retention Rate (CRR)
Remember, its 5 times difficult to acquire a new customer than retaining an old client. To put it simply, customer retention is the ability to retain customers over a period of time. And if you are able to retain a solid base of loyal customers, even a 5% increase in retention will result in a revenue increase between 25-95%. Now, with stats like that no wonder customer retention rate is the new catchphrase! By generating customer retention data, your customer service team can increase the profitability of your business by fine-tuning customer experience through customer loyalty programs and reduce customer churn rates.
4. Customer churn rate
Customer churn rate reflects the rate at which the business is losing customers. Are you keeping an eye on the customer churn rates for your business? Well, if you are not calculating the churn rates, chances are you are losing out on potential customers, their satisfaction rates and most importantly, business revenues. Customer churn rates imply the rate when your customers choose not to do business with you. For example, customers who have opted out of subscription or stopped renewing subscription add to the churn rate. High churn not only means stagnant customer revenue growth rate but often indicate bigger problems. Moreover, churn rates make it easy for your competitors to entice your customers and acquire them in the long run.
5. Customer support team performance metrics
No doubt, data helps the customer support team in effective decision making, but what helps the customer service executives to act proactively? Metrics or KPI? Well, it’s the KPIs that reflect the objectives or the key results to act upon to achieve the larger business goal. Remember, not all metrics are KPIs, but all KPIs are the metrics that you should track and improve and stick around.
Hence, much depends on the customer success leaders in achieving their renewal quota, customer retention, engagement and customer advocacy. But following the data-meets-action approach, team effectiveness stretches far beyond the renewals. Thisalso includes other metrics and tangible ways to achieve the targets set. In short, customer success truly depends on customer success managers (CSMs), teams and customer success leaders, when they actively work together to improve the situation and drive success in the long run.
Want to build excellent customer service experience with minimal efforts that works for your team? Count on us to guide your support staff in the right direction and get you ahead of your business goals!