RevOps - Connecting Customer Success to Financial Success
MarketStar India (Regalix)
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Welcome to the Regalix newsletter, where we'll keep you in the know on what's happening in the world of RevOps.
?If you are a part of the customer success team and believe that you are not connected to the financial aspect of the business, then think again! Customer success metrics predict a company's future financial health, and when it comes to measuring customer success, businesses need to pay attention to financial metrics such as NRR (Net Revenue Retention). It’s all about the revenue!
Customer success drives revenue growth. Data-driven customer success functions are critical for revenue teams. The golden rule of thumb for any business: happy customers mean loyal customers, and loyal customers mean recurring revenue. Organizations need to start building winning customer experience strategies, and if you are looking for expert help with that, this newsletter is for you.
TOP STORIES
7 Highly Effective Customer Success Strategies to Transform Customer Experience
It's possible that the sheer number of "best practices" available can overwhelm you when you first begin working with customer success. It's crucial to remember that there isn't just one ideal technique to handle customer success. Every business must develop its strategy for its clients. The strategies mentioned in this article are highly effective, yet they're still adaptable enough for you to customize them for your target audience.
Optimizing Customer Success Solutions to Scale an eCommerce Business
Regalix's customer support services directly boosted brand loyalty for a leading online fashion brand, leading to a 50% reduction in operational costs and a sharp increase in revenue, especially during their busiest season. Read our case study to understand how we helped the business scale and become profitable through enhanced CX.
?THOUGHT-STARTER
Customer Success KPIs Every SaaS Company Should Track
Net Revenue Retention (NRR) Rate
Net Revenue Retention projects the company's financial health, excluding any revenue earned from new customers.
The formula for NRR is as follows:
NRR = (Starting MRR – Contraction MRR – Churn MRR + Expansion MRR)/ Starting MRR x 100
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Gross Revenue Retention (GRR) Rate
Gross Revenue Retention is an indicator of the company's success in retaining its customers. The GRR rate ranges from 0% to 100 %, and the closer the number is to 100%, the better.
The formula for GRR is as follows:
GRR = (MRR start – Churn – Contraction) / MRR
Customer Churn Rate (CCR)
Churn rate reflects how many of a company's existing customers left or quits their services/ canceled their subscriptions/stopped using the product during a given period (either monthly, quarterly, or annually).
The simple formula for calculating CCR is:
CCR = (Total churned customers) / (Total acquired new customers) x 100
Expansion Revenue Rate (ERR)
The Expansion Revenue Rate is an indicator of how much additional revenue the company has generated monthly from its existing customers.
The formula for calculating ERR is:
ERR = (Net revenue in a month from your cross-sells or upsells) / (Total revenue at the beginning of the month) x 100
To learn more about these and additional metrics you should track and what they can do for your business,
FEATURE
State of Customer Success in 2022
Customer success is the new growth engine, and this year has been all about focusing on customer management and experience. Yet, the customer success department faces one of its most challenging times as companies face a storm of rising customer expectations. In this research report, we examine the state of customer success leadership in the post-pandemic environment, highlighting the important advancements, objectives, and difficulties that are reshaping the function of customer success as a crucial revenue-generating function.