You have oceans of customer data, but how do you turn it into actionable insights that you use to drive your strategy?
While long-term, you need to create a data infrastructure where this can be linked, maintained, and reported on. But in the meantime, how do you get started?
Let’s follow the path of Vilfredo Pareto, who said, let’s separate the” vital few from the trivial many”.
Download our Customer Success KPIs Tool to determine your Customer Success, and to leverage different KPIs in 3 areas discussed below: Satisfaction, Utilization, and Value.
The following metrics are the ones that most reflect the three things you care about the most:
- Satisfaction – This is a measure of how much customers enjoy interacting with you and starts with the initial sales interaction. It is important to capture this throughout the customer life cycle. While the other two categories of metrics are focused on the outcomes you generate for your customer (logical), this is focused on how your customers feel when they interact with you (emotion).
- Utilization – We care about utilization because this is the single biggest indicator of the amount of value customers will generate with your solution. This applies both in a SaaS and business services environment. The more your customers are using your product, the more likely they are to receive the value for which they hired you.
- Value – This needs to be measurable, and meaningful to your customer. It can include both hard (measurable cost reductions), or soft (cost avoidance from changes to their business processes). This must be done in a scalable fashion so that you can communicate this proactively to your users, influencers, and ultimately buyers.
Furthermore, all metrics can ultimately be categorized into three types, depending on how you intend to use them:
- Behavioral – Often the most difficult to measure, and from time to time you may need to trust your gut, what you’re seeing, hearing from your team.
- Leading – Data points that you collect, that let you know if you are on the right path. These are highly correlated to Lagging Indicators.
- Lagging – These are the outcomes you are trying to drive. These are customer outcomes as well as ones that drive success for your company. An example is renewal rate (your customers voting with their dollars) and revenue, your company’s ultimate lagging indicator.
The challenge we have seen in our engagements is most of our clients can’t capture these in a usable manner.
While Customer Success software programs (ie, Gainsight ,Totango) have the capability of capturing and pushing out these metrics, there is a dependency on the underlying systems (ie, CRM, support systems).
Capturing these metrics in a way that your CSMs can use to prioritize their daily activities will lead to top line growth.
Download our Customer Success KPIs Tool to determine your Customer Success, and to leverage different KPIs in 3 areas: Satisfaction, Utilization, and Value.
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