5 Customer Success Metrics You Wish You Knew Earlier

In its most simple definition, driving customer success is all about building strong partnerships with your customers so you can deliver greater?business outcomes.

As your primary goal is to help them overcome their challenges and arrive at the destination, you need to set a few critical performance indicators to be able to?measure progress?and the impact of your CS strategies.

These metrics are NRR, MRR, CLV, CES, and NPS which I’ve covered in the previous edition of my weekly CS newsletter.

But there are more.

And today we are going to explore?5 other metrics?which I believe are equally important and that will help you in your day-to-day conversations.

These are:

1/ CAC

2/ MAU

3/ CSAT

4/ CHS

5/ TTV

Let’s cover each one of them quickly.

1/ CAC: Customer Acquisition Cost

It’s the amount of money a company needs to spend to get a new customer.

=> allows you to identify the most cost-effective way to acquire new customers.

Its formula is simple:

CAC = total money you spent on Sales expenses and Marketing campaigns, divided by the number of new customers you acquired.

Example:

Money spent on a social media campaign: $5000

Number of new customers: 5

=> CAC for the social media channel= $1000

Based on the acquisition funnel you consider, you’ll probably have a different CAC.

The smaller the amount, the better company’s return on investment.

2/ MAU: Monthly Active Users

The number of unique users that engage with your platform within a 30-day period.

=> helps you measure performance and growth along with the level of usage per customer segmentation.

Tracked by unique identifiers such as user ID, username, or email.?

However, the definition of “user” and “active” depends on the company.

A best practice is to relate the measurement to a specific action.

For example,?you’d say?“an active user is the one creating at least 5 marketing campaigns per month.”

In the same way,?DAU (Daily Active Users)?stands for the total number of unique users engaging with your solutions on a daily basis.

The higher MAU?(or DAU), the better for you.

3/ CSAT: Customer Satisfaction Score

A popular metric that measures how satisfied customers are with your products or services.

It’s the percentage of satisfied customers (%).

CSAT = 100 x [number of satisfied customers], divided by [the number of survey responses]

The average score across most industries is around 70-80%.

And again, the higher the CSAT, the better.

4/ CHS: Customer Health Score

This is one of the most commonly used metrics.

=> helps you monitor the relationships customers have with your business, usually tracked in colors: Green / Yellow / Red

There are two key areas of focus mainly:

? activity

? usage of your products

Shows which customers need more attention (Yellow / Red) so you can build recovery plans to have customers back to Green status.

And again, the greener, the better for you! ??

5/ TTV: Time To Value

Measures the length of time it takes for your customers to realize the benefits of your solutions.

=> helps evaluate the value of an investment in time and money.

But the definition of “benefit”, and “value” is not that easy.

The shorter TTV, the faster for customers to maximize their return on investment.

And that’s it!

These were 5 other key Customer Success metrics that matter in SaaS:

1/ CAC

2/ MAU

3/ CSAT

4/ CHS

5/ TTV

But there are more that I'll cover in the upcoming editions.

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