Ditching NPS for Diamonds? Rethinking Customer Success Metrics
- Ankit Pandey
- Jul 23, 2024
- 2 min read
Linkedin Post dated: 19 May 2024
Hey, customer success rockstars!
Been virtually bumping fists with some amazing CS leaders lately, and one theme keeps popping up: NPS might be getting dethroned as the king of the metrics castle.
Don't get me wrong, NPS is still valuable, but the market's hungry for growth, not just retention.
These are some of the new contenders vying for the North Star throne:
💸 NRR - this beauty tells you if your existing customers are spending more over time 🤑. Think of it as the loyalty reward program for your business - are your customers growing with you?
💰 GRR (Gross Recurring Revenue) - tracks all your recurring revenue, new and existing. Being the lifeblood of subscription business this shows how well you're acquiring new customers who stick around.
🎯 CSQLs - Leads identified by your CS team with high potential to expand.
😞 Early Churn: Catching churn early has proved to be critical. This focuses on identifying customers at risk of churning before they say goodbye. Early detection = early intervention = saved relationships! 🩺
⌛ TTV - How quickly are customers getting up and running with your product? Faster TTV translates to happier customers who see the value quicker, reducing churn and boosting renewals. ️
These metrics, along with insightful signals (⚡) based on leading and lagging indicators, are emerging as the secret sauce for predicting churn and sparking customer expansion.
Leading indicators (think product adoption and user behaviour) are helping spot potential issues before they erupt while lagging indicators (like churn and revenue) are guiding course correction.
What are your thoughts? Are you seeing a shift away from NPS as the sole metric? What metrics are driving growth for your team?
Interested in diving deeper? Hit me up in a DM - I'd love to connect and swap customer success stories!
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