The THREE R’s: Key Customer Success Metrics To Report To Your Board Of Directors
Customer success, the extent to which your customers are satisfied with your product or service, is a critical part of business. Generally, the greater your customers’ success, the more your business is likely to grow profitably. Your customers should always get the maximum benefit for the amount of investment they put into implementing your solutions. While many company owners and customer success managers understand this, not many can tell the extent of customer success in their business. So how exactly can you measure customer success?
We talked to Jeff Piper, Co-founder and Chief Customer Officer at SpringCM to find out. Jeff Piper has a long history of successfully implementing customer success processes and has also experienced numerous milestones in the field of customer success. At SpringCM, he is responsible for all aspects of client success. In his own words; “I’m responsible for defining and executing all aspects of the customer’s experience, including consulting, training, technical support, and customer retention. In other words, I’m involved in virtually every aspect of creating and achieving customer satisfaction. It’s a big job. A big commitment. And infinitely satisfying.” All in all, Jeff is the perfect person to discuss this topic with…
The Three R’s
According to Jeff, reporting on customer success to the board of directors should ideally be centered on three key metrics, aka “three R’s”: Referrals, Reference-ability and Retention.
‘We measure referrals by tracking how many customers are buying more from us or introduce us to buyers that could buy more internally (or externally). This would typically include cross sell or upsell trends which is expressed in the number of deals, number of accounts and ACV.’
Leveraging your Customer Success Management system, you can easily create playbooks and automate your processes of finding upsell and cross-sale opportunities. One way to uncover referral opportunities is through the usage of customer email campaigns, surveys as well as your online advocacy community.
When you present the level of referral to the board of directors, you should calculate your upsell and cross sell figures. Specifically, Jeff recommends including cross sell or upsell trends that are expressed in:
Originally published at https://www.csmpractice.com/blog