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Customer Success Metrics

The key is to track a combination of the following metrics to get a holistic view of customer success. Choose the ones most relevant to your business goals. Regularly monitor them against benchmarks and work to continuously improve the customer experience.

Customer Satisfaction and Loyalty​

Net Promoter Score (NPS)​

NPS measures how likely customers are to recommend your product/service. It's calculated by subtracting the percentage of detractors from the percentage of promoters.

  • Benchmark: A good NPS is considered to be +50 or above.

Customer Satisfaction Score (CSAT)​

CSAT measures customer satisfaction at specific touchpoints, like after an interaction with support. It's the percentage of positive responses out of the total responses.

  • Benchmark: A CSAT above 80% is considered good.

Customer Effort Score (CES)​

CES measures how much effort a customer had to expend to get an issue resolved or complete a task. A higher score indicates an easier experience.

Customer Retention and Value​

Customer Churn Rate​

Churn rate is the percentage of customers who stop doing business with you over a given time period. It's calculated by dividing the number of churned customers by total customers.

  • Benchmark: An annual churn rate of 5-7% is considered acceptable for SaaS.

Customer Lifetime Value (CLV)​

CLV predicts the total revenue a customer will generate over their lifetime. It's calculated by multiplying average purchase value, average purchase frequency, and average customer lifespan.

  • Benchmark: CLV should exceed customer acquisition cost (CAC) by at least 3X.

Net Revenue Retention (NRR)​

NRR measures how much recurring revenue is retained from existing customers, accounting for upsells, cross-sells and downgrades. Over 100% NRR indicates growth.

  • Benchmark: Best-in-class SaaS companies achieve 100-130% NRR.

Engagement and Adoption​

Product Usage/Adoption Rate​

Measures the percentage of users actively using your product's key features. Higher usage indicates the product is providing value.

Average Time on Platform​

The average amount of time users spend on your platform per visit or per day/week/month. More time spent indicates higher engagement.

Free Trial Conversion Rate​

The percentage of free trial users that convert to paying customers. A higher rate means the trial successfully showcases your product's value.