Which Customer Success Metrics Are Best for Software Companies?
If you are a SaaS company, you probably know that you need to engage with your clients differently. This might mean adopting different tactics to gauge whether you need to make changes to your onboarding processes.
It ensures that you have the right customer success metrics; you need to look into customer feedback and reach out to see if there is anything you can improve.
Here are the metrics that tend to work best when you were developing relationships with your customers for your SaaS company.
1. Adoption metrics
You can set up your customers for all of the world’s success, but if you don’t monitor whether they choose to adopt your software, you aren’t getting completely accurate data.
This is why you should check in a few weeks or months after your customers have signed up for your software to see how they tend to use it, which members of their team are on it the most, and how much they use it daily tasks.
2. Onboarding costs
Every customer costs some money and time to onboard, and some can be more expensive than others. Customers are likely going to use your software for several different purposes, and it’s up to you to decide whether or not the extra time (and that of your teams) was worth that customer.
If you have a large account, it can be worth it to spend more time training them to use your software. However, if it is a smaller account that may or may not stick around, it is up to you as a business owner to decide whether you want to take on clients like that in the future.
3. Customer retention
How long your customer stays with you and whether there is a high churn rate can say a lot about your business.
If you are experiencing customers that are very excited about your product in the beginning and then drop off, you might have a whole host of problems you are not addressing.
This is why it’s essential to contact them not long after onboarding to make sure they don’t have any questions about your software and provide them with more information.
4. Customer effort
Some customers take more of your time and resources than others might, and you’ll have to weigh that when you are determining whether or not it was a successful interaction.
If you have spent a ton of time working through problems with a particular customer and don’t have any other issues, that might point to the fact that there is something wrong with them and not your business.
In this case, you can decide whether your time would be better spent working with another client.
5. In summary
Customer success metrics can be a valuable resource when it comes to determining whether your SaaS business is succeeding. Make sure you go through all of these when deciding whether or not your interactions with your clients have been a success.