What's your secret to measuring account management success?

1 Customer retention rate

One of the most important indicators of account management success is customer retention rate, which measures the percentage of customers who stay with you over a given period of time. A high retention rate means that you are keeping your customers happy and loyal, and that you are reducing churn and increasing lifetime value. To calculate your customer retention rate, you can use this formula: Retention rate = (Number of customers at the end of the period - Number of new customers acquired during the period) / Number of customers at the start of the period x 100 .

2 Customer satisfaction score

Another way to measure your account management success is to ask your customers how satisfied they are with your service, product, or solution. Customer satisfaction score (CSAT) is a simple and direct metric that captures the feedback of your customers on a scale of 1 to 5, 1 to 10, or any other range you prefer. You can ask your customers to rate their satisfaction after a specific interaction, such as a call, a meeting, or a delivery, or at regular intervals, such as monthly, quarterly, or annually. To calculate your CSAT, you can use this formula: CSAT = (Number of positive responses / Total number of responses) x 100 .

3 Net promoter score

Net promoter score (NPS) is another metric that measures customer satisfaction, but with a focus on loyalty and advocacy. NPS asks your customers how likely they are to recommend your service, product, or solution to others on a scale of 0 to 10. Based on their answers, your customers are categorized into three groups: promoters (9-10), passives (7-8), and detractors (0-6). Promoters are your loyal and enthusiastic customers who are likely to refer you to others and generate positive word-of-mouth. Passives are your satisfied but indifferent customers who are vulnerable to switching to competitors. Detractors are your unhappy and dissatisfied customers who are likely to spread negative word-of-mouth and damage your reputation. To calculate your NPS, you can use this formula: NPS = (Percentage of promoters - Percentage of detractors) x 100 .

4 Customer lifetime value

Customer lifetime value (CLV) is a metric that estimates the total revenue that you can expect from a customer over the course of their relationship with you. CLV helps you understand the profitability and potential of your customers, and how much you can invest in acquiring and retaining them. CLV also helps you segment your customers based on their value and tailor your account management strategies accordingly. To calculate your CLV, you can use this formula: CLV = Average purchase value x Average purchase frequency x Average customer lifespan .

5 Account growth rate

Account growth rate is a metric that measures the increase or decrease of revenue from a customer over a given period of time. Account growth rate helps you evaluate your account management success in terms of upselling, cross-selling, and expanding your share of wallet. Account growth rate also helps you identify your most valuable and loyal customers, as well as your at-risk and declining customers. To calculate your account growth rate, you can use this formula: Account growth rate = (Revenue from customer at the end of the period - Revenue from customer at the start of the period) / Revenue from customer at the start of the period x 100 .

6 Account health score

Account health score is a metric that combines various indicators of customer satisfaction, loyalty, engagement, and value into a single score that reflects the overall status and risk of your accounts. Account health score helps you monitor your account management performance and prioritize your actions and interventions. Account health score can be calculated using different methods and criteria, depending on your goals and objectives. Some of the common factors that can influence your account health score are: NPS, CSAT, retention rate, churn rate, revenue, usage, feedback, support tickets, and referrals.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?