Metrics Used to Measure CS ROI Part 2
This two-part infographic details several metrics that an organization can consider using, to evaluate their return on investments throughout the multiple phases of a customer’s journey from a vendor’s perspective, such as number of conversions, Monthly Recurring Revenue(MRR), Annual Recurring Revenue(ARR), Net Promoter Score (NPS), etc.
Measuring customer satisfaction comprises of gathering customer feedback via surveys, which is neither expensive nor difficult. Any company committed to a customer satisfaction strategy needs to shift its focus from merely measuring to managing customer satisfaction.
Customer Success metrics for SaaS companies have a huge role to play in measuring a company’s growth. With the vast amount of data that can be measured, it can be confusing to decide which figures to focus on to improve and grow your SaaS business. Like:
- Customer Lifetime Value (CLV) or LTV: A prediction of the revenue attributed to the entire future relationship with the customer
- Customer Health: A single value that highlights whether the customer is likely to churn or not;
NPS: Net Promoter Score
- CES: Customer Effort Score
- Time to First Value (TTFV) : Days/weeks/months it takes a new customer to realize value from the product
- Monthly Recurring Revenue (MRR): The income that a company can reliably anticipate every 30 days. An increase in amount indicates increasing revenue via new accounts, expansion, or retention
- Annual Recurring Revenue (ARR): To calculate ARR, multiply MRR by 12. Year over year increases in ARR are critical to show growth in the business.
- Churn Rate: The percentage rate at which customers cancel their recurring revenue subscriptions
- Customer Acquisition Cost (CAC): The cost of acquiring a customer
A customer tracking software can help you identify where to increase your marketing efforts, and will benefit you to identify which of your customer are using your product, who needs a bit more of engagement to understand the product better and which customer relationships will benefit most from boosting your brand recognition, and also in increasing your service efforts.
Customer Success Analytics Software provides a graphic view of who your customers are, their needs/requirements and the way in which they are using your product. It keeps you prepared to take proactive measures to reach out to your customer. Customer visit report also help in a similar way. All of this helps in increasing customer experience, ROI, and in building relationship and loyalty. It’s about monitoring your working pattern to understand it’s efficiency. Doing this you get a better picture of what is required, what can be discarded and which of the corners need attention.