The Key Metrics That Really Matter for Customer Success

Name: The Key Metrics That Really Matter for Customer Success
Uploaded: 2023-12-18T17:19:52+00:00
Duration: 43 s
Channel: Jason M. Lemkin
Description: Net renewal rate and net retention rate are the only metrics that matter for customer success leadership. Account health and product utilization can look…

18 Dec 2023 · 1 min

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Net renewal rate and net retention rate are the only metrics that matter for customer success leadership. Account health and product utilization can look good while customers still churn, so focus on what actually predicts whether they stay and spend more.

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I think the biggest learning for me is if you came to me 2 years ago and I was meeting with a new Chief Customer Officer or Senior VP of Customer Success and I was like, hey, how do you want me to judge you? They would tell me, if they told me, hey, you should judge me on health of accounts, utilization of the accounts, you know, overall usage and engagement with the product, I'd be like, No, I'm going to judge you on net renewal rate and net retention rate because those are the metrics in the business that actually matter for what you do. And so I don't care if you tell me every account is super healthy, but that correlates to very low retention or renewal rate. I, you know, I don't care for that.