Top 6 Customer Success KPIs To Observe in 2022

KPIs and Metrics Oct 29, 2021

In this article below, we will take you through some crucial metrics and KPIs for customer success. These KPIs will help you understand some of the questions like:

  • How well does your product or service go with your customers?
  • How comfortable are your customers using them?
  • How much are they recommending it to your other potential customers?

What Are Customer Success KPIs?

Customer Success Managers use KPIs and metrics to understand and track how well your product/service is performing with your customers. These KPIs are fundamentally required to establish a process of improvement that will maximize the business’s worth and customer relationships.

In the sections below, we will look at such vital metrics to track customer success accurately.

Customer Success is NOT Customer Support

Is there even a difference between the two terms? For many, they are the same thing. The confusion between the two terms stems from their similar wording and that both seek to help customers. However, the two have different goals, success metrics, and strategies.

What is Customer Support?

Customer Support is a set of procedures and practices that occur during specific scenarios. For instance, a customer might have different questions before purchasing a product or have issues after their purchase. Here is when Customer Support takes charge. It is a reactive approach to solving customer issues and challenges.

What is Customer Success?

Customer Success refers to a set of processes and practices that seek to help your customers with their successes. Customer Success puts in motion several strategies that help consumers through any challenges they might face or help identify uncovered opportunities for their customers. In the case of a large customer base, a Customer Success Manager is assigned, whose only goal is to see them succeed. KPIs for Customer Success highlight proactive strategies that assist your customers in getting even more value out of your product or service even when they have not directly asked for it.

By now, the difference between these seemingly similar terms must be clear. Simply put, Customer Support is a reactive practice that seeks to help customers with any issues or concerns they might have that require special assistance. Customer Success is a proactive practice that focuses on customers’ long-term value from your product or service. It helps them achieve more than they would have otherwise.

Top 6 Customer Success KPIs to Track

Let’s take a dig at the top 6 customer success KPIs that you should track to understand the success of your product amongst your customers. Not just that, also get insights on how to measure these customer success metrics.


Customer Churn or churn rate is a crucial KPI for Customer Success Manager to determine the quality of your product, service, and experience. Low Churn levels indicate your quality to cultivate clients and not to lose them. It is essential to high-growth companies as the net growth rate is defined as Growth minus Churn.

Customer Churn is the number or percentage of customers who stopped using as a percentage of total customers who bought the product/services from your brand for a certain period. We know how hard it is to gain new customers, and by keeping tabs on Churn, you could find clever ways to retain your customers instead of losing them.

Churn Rate Calculation

Customer Success KPI : Churn Rate
Churn Rate Calculation (source: reve)


Just a 10% increase in a company’s CSAT leads to a 12% increase in trust from customers. It is no magic; good service makes a difference. [source: Forbes]

Customer Satisfaction Score, or CSAT, is one of the most popular customer loyalty metrics for companies. Companies use CSAT to gauge how satisfied a customer is with a particular interaction or overall experience. The metric goes hand-in-hand with excellent customer experience.

CSAT is assessed by asking customers to rate their overall satisfaction with a specific product/service or interaction using a five-point scale (beginning from 1 being very unsatisfied). It is both a relationship metric (evaluates customer relationship and end-to-end experience) and a touchpoint metric (captures feedback after individual customer interaction with different customer journey points).

CSAT Calculation

Customer Success KPI : CSAT Calculation
CSAT Calculation (source: useresponse)


Net Promoter Score, commonly referred to as NPS, is a popular customer experience metric. As quoted by Walt Disney, “Do what you do so well that they want to see it again and bring their friends.” This is the concept of NPS.

Net Promoter Score is a customer loyalty metric companies use to evaluate customer relationships and end-to-end experience. NPS is quite popular in executive circles because of its ease in understanding and communicating the increasing advocacy concept.

NPS is used by 83% of customer success teams to understand customer experience better. (source: customer think)

Customer Success KPI : NPS
NPS Calculation (source: surveysparrow)

It is measured by asking, “how likely are you to recommend a product/service to a friend or colleague.” The respondent ranks the likelihood on a scale of 0 (highly unlikely) to 10 (extremely likely). You can calculate NPS by subtracting the percent of detractors (selected scale 6 or below) from the percent of promoters (selected scale 9-10). NPS is a relationship metric. It is used to measure long-term customer satisfaction and loyalty, and it is the big-picture KPI for every company.  

MRR Churn

Saas Metric, MRR Churn gives the measure of erosion of monthly recurring revenue. This metric is an extension to Customer Churn Rate. It is calculated by replacing monthly recurring revenue in place of the number of customers.

Customer Success KPI : MRR Churn Rate
MRR Churn Rate (source: chaoticflow)

MRR metrics present an ability to separate the impact of downgrades inflicted upon customer churn. Moreover, it upgrades on changes to MRR from the impact of customer growth.

Expansion MRR

Expansion Monthly Recurring Revenue (Expansion MRR) is the additional monthly recurring revenue generated in the current month compared to the previous month, excluding the MRR contributed by new customers/new MRR.

Some of the additional revenues that add up to Expansion MRR are Upselling, Cross-selling, and add ons. Here is how you calculate the Expansion MRR rate.

Expansion MRR gives the percentage rate of change of expansion MRR in the current month calculated relative to that in the previous month.

This is how one can calculate it:

[(Expansion MRR at the end of the month – Expansion MRR at the beginning of the month) / Expansion MRR at the beginning of the month] x 100 = Expansion MMR percentage rate.

Net MRR Churn Rate

This common SaaS metric, Net Monthly Recurring Churn Rate is the measure of lost revenue on a monthly basis. This metric is in contrast to Gross MRR Churn Rate that estimates the total loss to a company. It can be due to factors like cancellations and account downgrades.

The formula to estimate Net MRR Churn Rate is given below;

Customer Ssuccess KPI : Net MRR Churn Rate
Net MRR Churn Rate Calculation (source: flowcap)

The net MRR Churn can either be positive or negative. It is negative when the expansion MRR for the month exceeds the Churn MRR. The metric is essential as it helps establish the health of a SaaS business.

The Customer Success KPI benchmarks for companies

Companies’ customer success KPI benchmarks are depicted based on the customer churn, MRR churn, and the NPS and CSAT value. Check out the following to understand better,

  • Customer Churn: below 5% is a common goal
  • CSAT: 80% seems to be a common goal
  • Net Promoter Score (NPS): 50 is good.
  • MRR Churn: below 1% for best-in-class companies
  • Expansion MRR: Enough to offset churn & sufficient to make net MRR churn negative
  • Net MRR Churn: Anything in negative territory is just perfect

Please note, there always are certain exceptions as far as these values are concerned. One good example is Apple’s latest NPS score which was an 89, and that just worked right.

Customer Success KPI Benchmarks
Customer Success KPI Benchmarks (Source: Drift)

The success of any business is inherently interweaved with the success of its customers. Customer Success has turned out to be a buzzword among B2Bs. It draws a line between a company going broke and achieving mega-growth. It is high time you invest in Customer Success solutions to take your business to the next step. It is noteworthy that if Customer Success can make or break your business, so can the system you choose to manage it. Customer Success is tied to your bottom line as it helps reduce churn, improve renewal and satisfaction, and ultimately drive revenue.


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