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Home > Blog > Digital Marketing > Data Visualization >

How to Analyze Customer Success Metrics in Excel?

Customer success is the foundation of any business success. Customer success metrics are crucial for evaluating your products or services’ performance. This aids in your understanding of how customers perceive your brand. As a result, help you to enhance client satisfaction and increase sales.

Customer Success Metrics

Take the example of a SaaS provider of a project management tool. The company examined its customer success metrics. They found that a sizable portion of their clients was terminating their subscriptions.

Why?

They found the tool too complex to use.

In response, the company revamped the user interface and launched a series of webinars. The purpose of this was to make the product usage instructions more clear to the users. These measures resulted in a drastic cut in client churn rate and increased satisfaction.

This serves to highlight the significance of customer success metrics. It demonstrates how they might aid in enhancing customer satisfaction and retention.

Your customers’ success is as important as the success of your morning coffee. Like a good cup of joe, analyzing customer success metrics requires a delicate balance of art and science.

I’ll show you how to brew a winning formula for analyzing customer success metrics in this guide. A practice that will leave your customers satisfied and your business thriving.

What are Customer Success Metrics?

Customer success metrics are a set of performance indicators that measure the effectiveness of your customer success strategy. These metrics monitor consumer involvement, loyalty, retention, and general satisfaction with your offerings.

You can determine where there is room for improvement by examining these metrics. Consequently, make data-driven decisions to improve the customer experience and foster customer loyalty.

The 5 Most Important Metrics for Analyzing the Performance of Products

The five most important metrics for analyzing the performance of products are;

  • Acquisition metrics like conversion rate.
  • Performance metrics like defects and downtimes.
  • Engagement metrics like NPS and CSAT scores.
  • Retention metrics like Customer Retention Rate (CRR).
  • Monetization metrics like ROI (Return on Investment) and Customer Lifetime Value (CLV).

These categories of metrics help track how customers interact with a product. From initial acquisition to ongoing engagement and monetization. Tracking these metrics can help you form hypotheses, adjust variables, track progress, and better predict future performance.

13 Customer Success Metrics & KPIs You Need to Track

1. Customer Churn Rate

Customer Churn Rate is the percentage of customers who cancel their subscriptions. Or stop using a product/service within a given period.

How to Calculate Churn Rate?

Here is the formula;

Customer Churn Rate=(Customers who churned during the period )/(Total customers during the period) ×100

2. Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the predictable monthly revenue that a business can expect to receive. Subscription-based businesses like SaaS companies use MRR to measure their financial health and revenue stability.

How to Calculate MRR?

To calculate MRR, multiply the total number of customers by the average revenue per customer per month.

MRR = Total number of customers x Average monthly revenue per customer

3. Average Revenue Per User (ARPU)

The Average Revenue Per User (ARPU) is the amount of money made from each user. It provides insights into consumer behavior, income generation, and marketing effectiveness. ARPU helps businesses estimate client lifetime value, evaluate pricing models, and optimize marketing campaigns.

How to Compute ARPU?

To calculate ARPU, divide the total revenue by the total number of users.

ARPU=(Total revenue )/(Total number of users)

4. Net Dollar Retention

Net Dollar Retention (NDR) measures the growth or shrinkage of recurring revenue over a defined period. It considers customer expansion, negative churn, and downgrades to provide insights into customer retention and engagement. NDR is essential for evaluating a company’s long-term success and growth rate.

How to Measure Net Dollar Retention?

To measure NDR, follow these steps;

  • Determine the starting Monthly Recurring Revenue (MRR) for the period.
  • Add any new subscriptions or upgrades to the MRR.
  • Subtract any churn or downgrades from the MRR.
  • Divide the resulting number by the original MRR and multiply by 100.

Here is the formula;

NDR=((Starting MRR + upgrades – downgrades – churn) )/(Starting MRR)×100

A good benchmark for NDR is a rate of at least 100%. This indicates the company is growing revenue from existing customers.

5. Net Promoter Score (NPS)

NPS is a customer loyalty metric. It measures the likelihood of customers recommending your offerings/brand to others.

How to Measure NPS?

To measure NPS, you ask your customers the following question;

“How likely are you to recommend our product/service to others?”

Based on their responses, you classify customers as promoters, passives, or detractors. Then you calculate the NPS score by subtracting the percentage of detractors from the percentage of promoters.

NPS score = % Promoters – % Detractors

6. Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT) measures how satisfied a customer is with your product or service. Measuring CSAT is crucial for improving customer experience, enhancing customer loyalty, and reducing customer churn.

How to Measure CSAT?

CSAT is typically measured through customer feedback surveys. These surveys ask customers to rate their satisfaction on a scale of 1-5 or 1-10.

To calculate the CSAT score, divide the number of satisfied customers by the total number of responses. Then multiply the result by 100.

CSAT Score=(Number of satisfied customers )/(Total number of responses)×100

7. Conversion Rate

Conversion rate is one of the key customer success KPIs. It measures the percentage of users who have completed a desired action, such as making a purchase. It is essential in digital marketing to evaluate website traffic performance, marketing campaigns, and conversions.

How to Calculate Conversion Rate?

To calculate the conversion rate, divide the number of conversions by the total number of leads. Then multiply it by 100.

These are the different formulas for calculating conversion rates;

  1. Conversion Rate=(Conversions )/(Total Number of Visitors)×100
  2. Conversion Rate =(Conversions )/(Total Number of leads)×100

The best formula depends on how you measure traffic and the specific conversion goal.

8. Customer Health Score (CHS)

The Customer Health Score (CHS) measures a customer’s overall involvement and contentment with your business. It predicts whether customers will grow, remain stable, or churn.

How to calculate CHS?

To calculate the Customer Health Score (CHS), follow these steps;

  • Define customer health goals and select predictive metrics like product usage and marketing engagement.
  • Create a scoring system based on these metrics.
  • Segment customer data based on the scoring system.

9. Customer Lifetime Value (CLV)

CLV is the amount of money a customer will spend during their entire relationship with your business.

How to Calculate CLV?

To calculate CLV, multiply the average revenue per customer per year by the average customer lifespan.

CLV = Average revenue per customer per year x Average customer lifespan

10. Customer Retention Cost (CRC)

Customer Retention Cost (CRC) is the total cost incurred by a business to retain a customer. It includes all costs associated with customer success, customer service, and marketing to existing customers.

CRC is one of the key customer success KPIs for businesses relying on recurring or subscription revenue. It can help you decide how to price your services and specific features to increase profit margins.

How to Calculate Customer Retention Cost?

To calculate CRC, first, add all the costs associated with retaining a customer. Then divide the sum by the number of active customers.

The formula for calculating CRC is:

CRC=(Retention Expenses )/(Number of active customers)

11. Qualitative Customer Feedback

Qualitative customer feedback offers extensive insights into why customers hold certain perspectives about your product or service. It is subjective and focuses on the quality of non-numerical data to provide insights into underlying issues.

Qualitative feedback is good for collecting contextual data. It is typically used to understand the customer experience, identify areas of improvement, and innovate product offerings.

12. First Contact Resolution Rate (FCR)

FCR measures the percentage of customer issues resolved on the first contact with customer support. This metric might be more inclined toward customer service than customer success. However, how customer support solves a problem plays a role in product usage success.

How to Measure First Contact Resolution Rate?

Keep track of the number of customer issues or incidents a customer support agent has successfully handled on the first try. Then divide it by the volume of client complaints or incidents received. To obtain the percentage, multiply the outcome by 100.

13. Customer Effort Score (CES)

Customer Effort Score (CES) measures how easy it is for a customer to interact with your business. Or get their issue resolved. It aims to understand the ease of customers’ experience. CES is also a good indicator of customer loyalty.

How to Calculate CES?

To calculate the Customer Effort Score (CES), follow these steps;

  • Send a CES survey to customers after every interaction. The CES survey should ask customers to rate their level of agreement with a statement such as;

“The company made it easy for me to handle my issue.”

  • Calculate the total CES score by averaging the responses of all customers who have taken the survey.

Here is the formula;

CES Score=(Total sum of responses)/(Number of responses)×100

We have exhausted the essential customer success KPIs. Now let’s learn how to measure them and analyze the data in Excel.

How to Measure Customer Success Metrics?

First, determine your business’s relevant metrics and set up a tracking system. Depending on the metric, you may need to do any of the following;

  • Conduct surveys.
  • Analyze sales and financial data.
  • Monitor customer behavior and interactions.
  • Track customer support tickets.

Combine quantitative and qualitative data to get a holistic picture of customer success. Also, it is essential to review and analyze customer success KPIs regularly. This will enable you to spot patterns and potential improvement areas and adjust your strategies accordingly.

How to Analyze Customer Success Metrics?

Business is about acquiring customers and ensuring their satisfaction with your offerings. Thus, tracking and analyzing metrics for customer success to ensure your efforts are meeting your goals is essential. And what better tool than Excel, the world’s most widely used spreadsheet software?

But with so much data to sift through, it can be overwhelming to know where to start.

That’s where ChartExpo comes in.

Why ChartExpo?

Benefits of Using ChartExpo

  • ChartExpo has a wide range of visualizations. This allows you to choose the relevant one for your data. This streamlines data analysis and presentation, making it more effective.
  • ChartExpo boasts an intuitive user interface that allows you to create insightful visualizations effortlessly. ChartExpo enables you to generate informative charts without any coding experience.
  • With ChartExpo, you can easily create unique visualizations thanks to its customization options. You can personalize your visuals by tweaking the colors, fonts, and styles to suit your preferences.
  • ChartExpo gives you great value for your money. It offers a free 7-day trial and a monthly plan that costs $10.

How to Install ChartExpo in Excel?

  1. Open your Excel application.
  2. Open the worksheet and click the “Insert” menu.
  3. You’ll see the “My Apps” option.
  4. In the office Add-ins window, click “Store” and search for ChartExpo on my Apps Store.
  5. Click the “Add” button to install ChartExpo in your Excel.

ChartExpo charts are available both in Google Sheets and Microsoft Excel. Please use the following CTA’s to install the tool of your choice and create beautiful visualizations in a few clicks in your favorite tool.

Let’s say you conducted a customer survey and obtained the data below.

Question Rating Responses
How likely are you to recommend our software to a friend or colleague? 0 33
How likely are you to recommend our software to a friend or colleague? 1 40
How likely are you to recommend our software to a friend or colleague? 2 36
How likely are you to recommend our software to a friend or colleague? 3 43
How likely are you to recommend our software to a friend or colleague? 4 39
How likely are you to recommend our software to a friend or colleague? 5 39
How likely are you to recommend our software to a friend or colleague? 6 42
How likely are you to recommend our software to a friend or colleague? 7 74
How likely are you to recommend our software to a friend or colleague? 8 67
How likely are you to recommend our software to a friend or colleague? 9 144
How likely are you to recommend our software to a friend or colleague? 10 260

Let me show you how to use ChartExpo to create a visualization and glean insights from the data.

  1. Install ChartExpo in Excel to get started.
  2. Once installed, navigate to the INSERT menu and select My Apps.

3. Choose ChartExpo and click on the Insert button.

4. Select the CSAT Score Survey Chart from the chart list.

5. Select the data from the sheet and click the “Create Chart From Selection” button.

6. ChartExpo will generate the visualization below for you.

7. The default setting for the CSAT Score Survey Chart includes Grid Lines. Click the “Settings” button on the top bar to remove them.

8. Adjust the Opacity setting to 0 in the Chart Settings property window.

9. Click the “Apply” button to remove the Grid Lines.

10. Your final chart will resemble the one shown below.

Insights

  • 50% of the customers expressed willingness to promote your product.
  • 33% are not willing to promote your product.
  • 17% have taken a neutral stance.
  • Based on these responses, your Net Promoter Score (NPS) is 17. This score is obtained by subtracting the percentage of detractors from promoters.

FAQs:

What are customer success KPIs?

Customer success KPIs are measurements businesses use to assess achievement in obtaining customer success. They provide information about customer satisfaction, loyalty, and retention. They also assess the worth that customers place on a product or service.

What is the most important metric for customer success?

The most important customer success metrics include the following;

  • Customer Churn Rate (CCR)
  • Monthly Recurring Revenue (MRR)
  • Average Revenue Per User (ARPU)
  • Net Promoter Score (NPS)
  • Customer Lifetime Value (CLV)

The metrics you choose depend on your specific customer success objectives.

How can I measure the effectiveness of customer success?

Use the various customer success metrics to measure the effectiveness of customer success, such as;

  • Customer Churn Rate (CCR)
  • Net Promoter Score (NPS)
  • Average Revenue Per User (ARPU)

These metrics provide insights into customer success and help you make improvements accordingly.

What metrics are customer success responsible for?

Customer success is responsible for the following metrics;

  • Acquisition metrics like the conversion rate.
  • Retention metrics like Customer Retention Rate (CRR).
  • Performance metrics like defects and downtimes.
  • Monetization metrics like Customer Lifetime Value (CLV).
  • Engagement metrics like NPS and CSAT scores.

Wrap Up:

Customer success metrics are essential for businesses of any kind. From startups to multinational corporations, the significance of these KPIs cannot be overstated. They offer a wealth of information on how customers perceive your business. And how they interact with your products or services.

Customer success KPIs monitor consumer involvement, loyalty, retention, and general satisfaction with your offerings. You can determine where there is room for improvement by examining these metrics.

The secret to a successful business is monitoring the metrics that will give valuable insights for decision-making. This necessitates you employ the power of data analytics.

Customer success KPIs are only as useful as the tools you use to track them. That’s why picking the correct set of tools for data analysis is so important. Excel can be an efficient data analysis tool. But, it lacks some features that would facilitate seamless data analysis.

The perfect solution to this problem is ChartExpo for Excel. With ChartExpo, you can seamlessly analyze your data and take action as needed. ChartExpo allows you to create insightful visualizations for your data. Consequently, glean valuable insights from the visualizations.

Don’t wait. Try ChartExpo today to enjoy the benefits firsthand.

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