How can you tell which projects your customer success team is working on are effective? Your high-touch customer success team will operate more productively if it can identify the KPIs and metrics early on. This makes the goals specific and measurable.
Setting customer success metrics involves more than just measuring performance. KPIs are also concerned with the process, or how the team works to accomplish the goal. Your business can quickly identify the efforts’ weak points by defining KPIs that cover them. This prevents the wastage of more time and money on the wrong course.
Low-touch vs High-touch customer success
The conflict between human and automated communication minimizes the low-touch vs. high-touch customer success difference. The choice between individualized solutions, one-on-one customer help, and the available materials a customer can utilize themselves is a better way to frame the distinction.
- High-touch: This approach entails regular, one-on-one support from a committed Customer Success Manager who may be handling this account as their exclusive responsibility. It applies to more strategic or high-value clients who are frequently more complex and call for individualized attention.
- Low-touch: Also known as tech-touch, this strategy makes use of non-designated customer success associates when necessary, as well as digital engagement. It is usually employed for volume clients that typically have a low level of recurring revenue and/or a straightforward rollout.
Customer Success (CS) team members’ judgment, alertness, and inventiveness come in handy to differentiate between both approaches. Both strategies employ digital interaction, as well as the data collecting, analysis, and solutions offered by CS software, in their preparation. Delivering value to customers by assisting them in using your product to realize their business objectives is the ultimate objective in each situation.
KPIs for High Touch Customer Success
Lagging indicators, or the long-term impacts of an event that happened in the past, are an excellent approach to gauge your Customer Success efficacy in a high-touch enablement model. For instance, performing business reviews typically enhances upsell sales. Lagging indicators show patterns as well.
The churn rate, which measures the proportion of a company’s customers who opt to end their subscription over a specific time period, is another typical example of a lagging indicator in the context of customer success. An organization’s high turnover rate should serve as a warning sign to alter the Customer Success plan.
These 4 lagging indicators define your hurdles or accomplishments pretty well.
Net Promoter Score (NPS)
For high-touch customer success teams, we advocate the usage of NPS as a KPI. A single question that often asks a respondent whether or not they would suggest a good or service to others constitutes the NPS score. The responses are graded from 0 to 10 and grouped into the following categories:
0 to 6: Detractors (unsatisfied customers, perceived as a high rate of churn)
7 to 8: Passives (might defect if they find a competitor attractive)
9–10: Promoters (Most likely to turn evangelists for your brand; mostly account for 80 percent of referrals)
Churn, which is also known as the Revenue Churn, evaluates the revenue that your current customers opted to forego over a certain time frame. This often includes full contract cancellations and downgrades.
Your upsell and cross-sell revenues (the total amount from expansion deals) should equal your gross churn to achieve a high NRR when evaluating the health of your business (Net Retention Rate).
We emphasize that revenue should be used to measure turnover. You may see that your business may not be losing customers, but your revenue may have decreased as a result of low engagement and downgrades.
Gross Revenue Retention (GRR)
The GRR measures how well your business retains consumers. The rate can be anything between 0% and 100%; the closer your GRR is to 100%, the more appealing you are to investors. NRR (net revenue retention), which is essentially the same as GRR but provides a more comprehensive picture of your company’s health, must also be brought up when talking about GRR.
Also known as Upsell Revenues, this is a percentage that reflects how much money resulted from existing customers opting into extra products or services over a certain time period. For the purpose of this discussion, we tied the expansion revenues rate to the quantity of upsell or cross-sell revenues.
Customer Lifetime Value
Customer lifetime value (CLV) is the entire profit a business can anticipate making over the course of a certain customer relationship. It’s one of the finest methods to link customer success initiatives with revenue. Revenue is the most important statistic, undoubtedly. It is a technique for measuring customer success.
Customer lifetime value combines the effects of two important performance measures, which your customer success operation affects:
- Yearly revenue per customer
- The average duration of a customer (in years)
Your company should be able to enhance both of those figures with the help of a strong customer success team. This will have a cumulative influence on customer lifetime value.
Tools and Software for Monitoring Customer Success Metrics
High-touch clients, who demand more holding and attention, receive special treatment. Customer Success teams must be aware of how long each step of the customer’s onboarding process takes. It helps to successfully deliver this level of service.
CustomerSuccessBox platform offers the best solution. Of course, this can be modified to meet the unique and changing demands of your business. The idea is to provide a mechanism that your own Customer Success team may use to track out bottlenecks.