Learn how Jeff Piper, Chief Customer Officer at SpringCM presents customer success outcomes to the board of directors. Per Jeff, there are many Customer Success Metrics you could report on, but there are three main metrics to include when presenting customer success to your Board of Directors. Need to present customer success to your board of directors? Download this power point template to help you get started: http://snip.ly/xb8vk
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To download a Customer Success Board of Director PowerPoint template, visit this link: http://snip.ly/xb8vk
The Three R's: Key Customer Success Metrics To Report To Your Board Of Directors
1. THE 3 R' S
KEY CUSTOMER SUCCESS
METRICS TO REPORT TO
YOUR BOARD OF
DIRECTORS
By Irit Eizips
CEO, CSM Practice
2. Customer success, the extent to which your customers
are satisfied with your product or service, is a critical
part of business. Generally, the greater your customers’
success, the more your business is likely to grow
profitably.
Your customers should always get the maximum benefit
for the amount of investment they put into implementing
your solutions.
While many company owners and customer success
managers understand this, not many can tell the extent
of customer success in their business. So how exactly can
you measure customer success?
5. 1.
REFERRALS
cross sell or upsell trends
which is expressed in the
number of deals, number of
accounts and ACV.’
Leveraging your Customer
Success Management
system, you can easily
create playbooks and
automate your processes of
finding upsell and cross-sale
opportunities.
We measure referrals by tracking how many customers are
buying more from us or introduce us to buyers that could buy
more internally (or externally). This would typically include
One way to uncover referral opportunities is through the
usage of customer email campaigns, surveys as well as your
online advocacy community.
6. When you present the level of referral to the board of directors, you should
calculate your upsell and cross sell figures. Specifically, including cross sell or
upsell trends that are expressed in:
This is an important metric to the board of directors, since it is tightly
correlated with bookings and revenue targets and company valuation. If you
have your customer segmentation already in place, consider breaking these
numbers down by industry, company size, account segments.
NUMBEROFDEALS
NUMBEROFACCOUNTS
ACV, ARRORMRR
7. 2.
REFERENCE
-ABILITY
This is the extent to which our customers are advocating on our
behalf. Reference-ability is, basically, the extent to which
customers are reviewing and recommending your solution.
This includes a range of
advocacy activities – For
example, the number of
positive reviews on G2 Crowd,
the AppExchange, etc.’
These can help the board
understand the extent to
which your customers
advocating for you, and as
such, their level of satisfaction
and perceived value of our
solution.
8. How can one report on the level reference-
ability to the board of directors?
Reference calls
Online Reviews and Testimonials
Press Releases and Case Studies
Before each meeting with the board of
director, you count how many people are willing and ready to be
called in as a reference for your company.
You might want to do a quick search on Google or social media to
find out exactly where your customers are “talking about you”.
However, once you have a solid list, track and compile a report of
how many reviews and raving testimonials had been posted.
On a quarterly basis, compile the number of cases studies, media
and analyst interviews, and press releases that you conducted
with your customers as well as number of events
9.
10. 3.
RETENTION
RATE
This is a key performance
indicator for the board of
directors as it is directly
impacts the company’s
profitability and bottom line.
Measuring retention of both
number of accounts and ACV.
These metrics are then
segmented by key customer
attributes such as industry,
company size (employees or
annual revenue), and customer
segment.
11. CONCLUSION
When support, usage and engagement metrics are
combined – it provides a good handle on the
customer’s health.
Similarly, it's important to build your referrals,
references and advocacy list as they are invaluable if
you want to know how well Customer Success / your
business as a whole is doing. Without this
information, you won’t know if any future changes are
even wanted by your client base and could cost you
dearly.