7. Customer Success Metrics
Annual Recurring Revenue
Annual recurring revenue is the measure of how much money the company is earning from active subscriptions for a year Annual recurring revenue = MRRx12
Gross Revenue Retention
Calculates the total revenue (excluding expansion) minus revenue churn rate minus revenue churn (churn and downsell) Gross RR = ($value of ARR - ($value of churned revenue -$ value of contracted revenue) /ARR at the start of the month)
Customer Renewal Rate
Customer Renewal rate us measured by the number of customers who renew over a period of time divided by the number of customers up for renewal during this time Customer renewal rate (%) =(#of customers who renew/total # of customers up for renewal)x100
Customer Churn Rate
Customer churn rate is the percentage of customers that leave you, or churn in a specific time period Customer Churn rate = (#of Departing Customers in a year/#of Total Users in a Year)x100
Customer Success Metrics
Customer success metrics are KPI's used to measure the effectiveness and impact of CS in a SaaS business. These metrics help track the overall success and impact of the CS function
Monthly Recurring Revenue
Monthly recurring revenue is the measure of how much money the company is earning from active subscriptions for a month Monthly recurring revenue = sum of total customer revenue/by12
Net Promoter Score
Net promoter score is a metric that helps measure how likely your customers are to recommend your product to others Net promoter score =% of promoters - %of detractors
Net Revenue Retention
Net revenue retention is the percentage of recurring revenue that collected from existing customers Net Revenue retention = (($value of ARR+$value of earned revenue) - ($ value of churned revene +%value of contracted revenue/ARR at the start of the month)
Average Revenue Per Account
Profitability metric that tracks how much revenue a company earns per account Avg rev per acct = Total ARR/# of Accounts
Revenue Renewal Rate
Revenue Renewal Rate is the ratio of revenue measured against the total amount of renewable revenue Revenue renewal rate (%)=($value of renewed revenue/total$value of renewable revenue)x100
Revenue Churn Rate
Revenue churn rate is the variable metric to track the % of lost revenue in a specific period of time Revenue churn rate = ($value of churning customers in a year/$value of total annual revenue)x100
Customer Effort Score
The customer effort score describes how much effort it takes for a customer to complete a job task or activity CES = Total sum of the responses/ number of responses
Customer Satisfaction Score
The customer satisfaction score is used to understand how satisfied a customer is with a business experience or specific interaction CSS = Total # of satisfied responses (4 or 5)/total number of responses CSAT is 1-5
