NRR isn’t the Problem. It’s the Symptoms Leading You There.

NRR [Net Revenue Retention]: The percentage of recurring revenue retained from existing customers over a defined period of time, including expansions, downgrades, and churn. It reflects how well a company is growing or losing its customer base.

???? Comment "CS KPI Cheat Sheet" below to subscribe to my weekly newsletter and get your free copy of my complete Customer Success KPI workbook!        

A while ago, a CS executive at a mid-sized tech company approached me. They were struggling with defining KPIs for their team. Their focus? NRR—the be-all and end-all. The problem? The junior CSMs were overwhelmed, trying to hit aggressive targets without knowing what actions to focus on daily. It was a bit like trying to drive without a map. You can imagine the result—frustration, inefficiency, and a serious morale dip.

It was clear the CEO’s goal was growth, specifically through expanding current accounts. While NRR was the lagging indicator everyone was focused on, what was missing were the leading indicators to guide the team’s daily actions. So, we worked together to realign their KPIs and give the CSMs a clear roadmap to follow.

We started asking:

• What leads to expansion opportunities?
• What actions have a direct impact on growth?

For this company, the answers were:

• Hit usage milestones in the first 90 days – high adoption correlates with upsell potential.
• Engage with executives regularly – it's not just about the users; the decision-makers matter.
• Proactively resolve issues – expansion conversations stall if there’s unresolved customer pain.

Once we defined these leading indicators and tied them to the CEO’s growth vision, something amazing happened: CSMs were no longer stressing about NRR. Instead, they had clear activities, like ensuring each account hit 90% product adoption or scheduling quarterly reviews with execs. This clarity reduced overwhelm, increased confidence, and naturally led to better outcomes.

Over time, the team started hitting those leading indicators more consistently, and—surprise, surprise—it showed up in the NRR numbers that the CEO had been obsessed with. Expansion deals grew, and not because they were waiting for upsells, but because they were intentionally driving the right behaviors.

Key takeaway? Your KPIs shouldn’t just measure the end game. They should provide your team with the clear steps on how to get there. Align them with your CEO’s growth vision and the leading indicators that will drive results, and you’ll have a team that’s less stressed, more efficient, and delivering results that matter.

If you're a B2B executive and you're still trying to figure out the right KPIs for your Customer Success team, you're not alone. Many leaders struggle to define metrics that truly drive performance and align with company goals.

If you're looking for help with this, let’s chat. The Customer Method is a strategy coaching program designed for business executives who want to build a world-class Customer Success practice. Direct message me about it and let’s talk to see if there’s a fit.