how to define your key customer success metrics and goals webinar slides

How to Define Key Customer Success Metrics and Goals - #CSWebinar @GetAmity @TSLCustomers

How to Define Your Key Customer Success Metrics and Goals

Kristen Hayer Founder & CEO, The Success League@KristenHayer


Agenda• Why Listen to Kristen?• Why Metrics? • Step 1 - Gather Information• Step 2 - Define Key Metrics• Step 3 - Translate Metrics into Goals• Step 4 - Roll out Goals• Step 5 - Reporting on Metrics• What About Customer Goals?• Q&A• Join The League• Cool Stuff About Amity


Why Listen to Kristen?• Over the past 15 years as a senior sales and customer success leader,

I built annual business plans, defined key metrics, and rolled out quarterly goals for my teams.

• The Success League focuses on helping early stage and growth companies build out their metrics, goals and compensation plans for success teams.

• I enjoy reading books and articles about business. My favorite resource on defining metrics is Lean Analytics, by Alistair Croll and Benjamin Yoskovitz

• Fun stuff…


Why Metrics?1. Customer satisfaction must be

measured to be proven2. Customer success as a

revenue vs. cost center3. Proven results = budget,

headcount and resources4. Customer outcomes require

measured ROI


How to Define Metrics & GoalsStep 1 – Gather Information

Step 2 – Define Key Metrics

Step 3 – Translate Metrics into Goals

Step 4 – Roll Out Goals

Step 5 – Report on Metrics


Step 1 – Gather InformationVi

sion • Meet with other

executives around the company

• Review the company’s 2017 goals and initiatives

• Consider your own goals for the team

Data • Prior year

performance on key metrics

• Current customer base information – size, demographics, segments

• Customer satisfaction or survey data from other teams

Finan

cials • 2017 Business

Plan• Sales expectations

and changes• New products and

financial impact• Retention model• Budget and

headcount


Step 2 – Define Key Metrics: RetentionCHURN RATE = [# of customers who cancelled in a period] / [total # of customers at the

start of period]

Other Core Retention Metrics:• Revenue Retention Rate ($)• Customer Renewal Rate (#)• Net Churn ($ or #)

Leading Metrics:• Average Customer Health Score (#)• Average Churn Risk Rate (%)

Lagging Metrics:• Churn Rate by Reason (%)• Churn Reduction Project Metrics


Step 2 – Define Key Metrics: Expansion

EXPANSION REVENUE RATE = [expansion revenue in a given period] / [total revenue in a given period]

Other Core Expansion Metrics:• Total Expansion Revenue ($)• Upgrades ($)• New Product Sales ($)• Partner Product Sales ($)

Leading Metrics:• Product Utilization Rate (% or #)• Opportunities ($ or #)

Lagging Metrics:• Expansion Sales by Product ($)• Expansion Sales by Segment ($ or %)


Step 2 – Define Key Metrics: Satisfaction

NPS SCORE = [% of Promoters] – [% of Detractors]

Other Core Satisfaction Metrics:• Satisfaction Survey Results (%)• Customer Engagement Score (%)

Leading Metrics:• Average Customer Health Score (#)• Average Time to Value (#)

Lagging Metrics:• Referrals (# or $)• Retention (# or $)• Expansion (# or $)


Step 3 – Translate Metrics into GoalsSpecificMeasurableAchievableRelevantTime-based

Bad Example – “Make customers happier.”Good Example – “Increase NPS by 2 points over the next 6 months.”


Step 3 – Translate Metrics into Goals: Example

Key Metrics

• Gross Churn• Churn Rate due to Product

Issues• Upgrade Revenue• Average Customer Health

Score

Goals

• Reduce gross churn to under 10% by the end of 2017.

• Reduce churn due to product issues by 50% in the second half of 2017.

• Upgrade 25% of the customer base to the superior plan by the end of 2017.

• Increase the average customer health score 2% each month in 2017.


Step 3 – Translate Metrics into Goals: Example

Break down metrics into monthly or quarterly goals.

Make sure the breakdown achieves the results you outlined in your SMART

goals.

Not every goal needs to start at the beginning of the

year.Make sure you know your starting point - the baseline

metric.

Incorporate seasonality if that makes sense for your

business.


Step 4 – Roll Out Goals 1. Get Approval2. Review in Team Meeting3. Break Down Individual Goals4. Review in One-on-One

Meetings5. Regularly discuss Results in

One-on-One and Team Meetings

6. Report on Results to Company


Step 5 – Report on Metrics

Wee

kly- Look for trends

and issues- Review individual results with team members- Make quick changes to tactics

Mon

thly- Review team results with group- Review YTD results with manager- Make changes to initiatives if needed

Quar

terly

- Address issues by adjusting metrics and goals if needed- Report results to the company, leadership and board

Look for opportunities to share your results with the rest of your company. This drives a focus on customers and support for the customer success team across

your organization.


What About Customer Goals?Take the same approach to build metrics and goals with your strategic customers:1. Talk about expectations and

goals2. Gather existing data and

metrics3. Create a metrics-based plan4. Review with customer and

modify5. Report metrics and results in

each quarterly business review


Q&A


Join the LeagueNewsletter – sign up at:www.TheSuccessLeague.io/blog

Follow – on social media:@TSLCustomershttps://www.linkedin.com/company/the-success-league

Interested in Consulting or Coaching Services?Kristen [email protected]

Welcome to the League.

http://www.TheSuccessLeague.io/blog

https://www.linkedin.com/company/the-success-league




mailto:[email protected]


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