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Metrics

Customer Success, Metrics

7 Essential Customer Success Metrics ft. @UseNotion

Image created by Yasmine Sedky (@yazsedky).

Excellent Customer Success leaders know that the practice is both art and science. Being exceptional in the role means being good with both numbers and people. In a way, it is the perfect marriage of using data and and building relationships. Data helps you build better, stronger, happier, and longer relationships with your customer, because it’s the data that can help you deliver a more responsive, customized and pleasant experience for your customers.

Tracking the right metrics also comes with another benefit: They’re the raw materials you can use to secure more funding for your Customer Success department, argue for changes in processes that impact your team, and back up any feedback you deliver to Product. These are the metrics that prove your worth, help you grow, and enable you to deliver success to your customers too.

Disclaimer: Many of the metrics listed below aren’t solely customer success metrics. In fact, many will be from data sources that aren’t necessarily controlled, managed, or regularly accessed by the customer success department. This can make tracking this data challenging.

We recommend a 5 step process to getting the information you need to deliver a better experience to your customers.

  1. Make a spreadsheet with each of these KPIs listed. Include additional metrics that matter to your team. Fill in any of the data that you have.
  2. Determine who owns the information you need to fill in the rest of your spreadsheet. Once you figure that out, send a personal appeal requesting regular updates for that data.
  3.  Set multiple event alerts to remind you to pester them for their numbers each week or month.
  4. Summarize the pertinent numbers weekly or monthly, so your boss is up-to-date on how you’re team’s doing. Also discuss with your team, so you can track progress to team goals, discuss areas where you can improve and celebrate wins as a team.
  5. Every quarter, re-evaluate team goals and the associated metrics used to track their progress and adjust your spreadhseet accordingly.

Read More on Notion

Metrics, Startups

How to Use Data to Unlock Your Next Promotion ft. @UseNotion

how-to-use-data-to-unlock

Image created by Yasmine Sedky (@yazsedky).

Squeaky wheels. They tend to get more grease than the rest of us. Even if the other wheels are more effective, the squeakers are attention-grabbers. And in business, it’s often those who grab attention for their efforts who gain recognition (and raises and promotions), leaving humble types quietly toiling away without due reward.

In a competitive job market, you need to differentiate yourself from your peers to get ahead, but that doesn’t mean you have to start squeaking louder. Nobody likes a braggart. It’s much better to have your praises sung for you, and there’s no better way to do it than by having the value of your work proven by data.

Being Data-Driven Can Transform Your Perception – and Performance – at Work

Whether you manage a company, a department, a team, or just yourself, using KPIs or OKRs to track progress is an effective way to stay motivated and prove the efficacy of your efforts at the same time. KPIs – key performance indicators – change depending on what you’re trying to accomplish, but most importantly, they are measurable values that demonstrate how effectively you’re achieving your goals. Most often, KPIs are also SMART: specific, measurable, attainable, relevant, time-bound.

And each one is a stepping stone towards your larger goal.

OKRs – objectives and key results – are similar, but a little different. This is a technique for setting and communicating goals and their results to get each person in a team moving together in the right direction.

Use one or both, but either way, you’ll be adopting a system of setting specific, measurable, realistic and deadline-driven tasks that align your team with the company (or even just aligning yourself).

They also provide clear direction, so everyone involved knows exactly what to do next.

The other perk of instituting simple data gathering and analysis is that it allows you to figure out what’s working well and what isn’t, so you can adjust your strategy or even find ways to help the company as a whole.

But the real magic comes after you’ve been pursuing these KPIs and OKRs for long enough to track your success rates.

Anyone can talk a good game. Most people do, at least in front of the boss. But few are able to back up their claims by showing a data-based trajectory of success.

And, when you have a suggestion, management will listen when you can justify your idea with numbers, charts or graphs. You’ll become the authority on the topic!

Read More on Notion


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Metrics, Social Media

What You Think Matters Doesn’t – Meet Social Media’s Better KPIs ft. @UseNotion

kpi

Image created by Yasmine Sedky (@yazsedky).

What social media KPIs would you, personally, like to brag about to your boss? More followers than Katy Perry? An original, semi-clever tweet for every minute of the day (and double on Sundays)? The fact that you’re only following one person – the CEO – but you’ve got 636,558 followers, CRUSHING the followers-to-following ratio?

And what if I were to tell you that those are totally pointless?

Chuck ’em. Toss’em. Line the birdcage with them, because they’re yesterday’s news.

Not only are these numbers not true indicators of success, they won’t help you build a more engaged, loyal following on social media. And they won’t help your bottom line.

But other metrics can.

Here are the three social media KPIs that matter:

  1. Amplification
  2. Applause
  3. Economic Value

Read More on Notion


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Metrics, Startups

Lean Analytics: Why the “One Metric” is More Complicated Than it Sounds ft. @UseNotion

lean-analytics

Image created by Yasmine Sedky (@yazsedky).

“The One Metric that Matters” – sounds important, doesn’t it? There’s been a lot of talk about “the One” in Lean Analytics circles, but I’d like to let you in on a secret:

The secret is that the One Metric changes over time. It could change year-to-year or quarter-to-quarter, depending on your growth stage and what matters most to you now.

And, the One Metric for your company is often different than the One Metric for another company.

So the One Metric just got a bit more complicated. But when you get down to the heart of the One Metric, it becomes relatively simple again:Find what is most important to the health and growth of your company right now, measure it, and improve on it.

Let’s take a look at how you can do just that.

Read More on Notion


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Metrics, SaaS, Startups

Why Every Team Needs Quantitative Goals ft. @UseNotion

whyeveryteamneedsquantitivegoals

Image created by Yasmine Sedky (@yazsedky).

The mistake I see most often: Companies hit a million or two in revenue, and not every department has quantitative goals. Sales always has a goal – but does marketing? What are their quantitative goals in customer success? What are engineering’s quantitative goals it has to hit this quarter? Do you have a point system? Do you have a card system? Most marketers are like ‘I don’t have a lead commit, I just have a budget.’ We’re not in that world anymore. We all have to set measurable goals.

– Jason Lemkin, founder of SaaSTr, Metrics that Matter Webinar, April 26th 2016

Jason Lemkin, venture capitalist and founder of SaaSTr, says the biggest mistake he sees with companies in the start-up phase ($1mm – $2mm ARR) is not that they don’t track CAC or LTV or one single metric, but rather that each division, from sales to marketing to product to customer success, and even engineering, don’t have specific quantitative goals.

In short, each department needs to find their key metric to drive success in order to keep getting better.

And, while Lemkin doesn’t go into the specifics for each department, his rule of thumb is crystal clear:

Figure out a goal for every department. Most importantly, set a baseline based on what you know, then drive that up or down.

Sales has always been driven by metrics and quotas. Why not other departments? With the data gathering and tracking technology we have at our disposal, there’s no excuse not to try and optimize every process, every department and every team.

Here are some suggestions for success metrics — Key Performance Indicators (KPIs) — that make sense for the key players in your start-up phase company: Engineering, Product, Customer Service, and Marketing.

Read More on Notion


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Content Marketing, Data Science, Metrics, Tools

Data Storytelling 101: Helpful Tools for Gathering Ideas, Designing Content & More by @NikkiElizDeMere

data-storytelling

It’s an exciting time to be a content marketer. But it’s also a challenging time.

As more companies continue to jump on the inbound marketing bandwagon, the influx of content seems to be turning into a bit of a traffic jam. And few things have the power to cut through this noise like data storytelling.

Combining the visual appeal of images with the trust engendered by raw data, data storytelling is a force to be reckoned with. Marketers are using data storytelling to support every part of the buyer’s journey, from attraction and consideration to conversion and delight. What better content to offer a consideration-stage buyer than a comparison chart between your services and your competition’s?

Not a data analyst? No worries. Check out the list of tools below. From data collection to design, this roundup of resources is designed to make it easy for anyone to get started with data storytelling.

Read More on HubSpot


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Customer Success, Metrics

Give Churn the Old Heave-Ho With These Data-Driven Hacks ft. @ChartMogul

Customer Churn

“Heave”

“Boil”

“Swirl”

“Toss”

“Seethe”

These are not the words you want to use to describe your clients’ reactions to your SaaS product – and they are all synonyms for “Churn.” Of all of these unsettling terms, I think churn is the worst. Churn is what happens when you’ve built up your hopes and dashed them on the rocks of poor management and failure to meet expectations. And, reducing (dare I say, eliminating?) churn should be the goal of every growing subscription-based company.

Read more on ChartMogul


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Conversion Rate Optimization, Curation, Metrics, Tools

34 Tools for Conversion Rate Optimization ft. @MorganB

tools-for-cro
Image created by Yasmine Sedky (‏@yazsedky).

Qualitative, quantitative, testing, and workflow tools for conversion rate optimization.

Conversion Rate Optimization is one of the most powerful levers for driving online business growth.


The Conversion Rate Optimization process includes quantitative and qualitative data and testing with a scientific approach.

As Peep Laja mentions, “[CRO] tools aren’t as important as knowing what to do with them. Putting a scalpel in someone’s hand doesn’t make them a surgeon.” That said, building a CRO stack won’t make you an expert, but it’s a good place to start when familiarizing yourself with related methodologies.

The tools listed here were curated by Qualaroo and Segment.io during a webinar about how to build the perfect conversion stack. There isn’t an accompanying video for it, but if you have questions you can direct them here.


Quantitative Tools

The What

Google Analytics (@googleanalytics)
An ad click here, a page view there, a video watched on a tablet before bed… but which one clinched the sale? Google Analytics has the latest in full-credit measurement, so you see all the stops people take on the road to action. The result: a measurable way to improve campaigns and reach new audiences as they go through their days.

KISSMetrics (@KISSmetrics)
Google Analytics tells you what’s happening. KISSmetrics tell you who’s doing it.

Mixpanel (@mixpanel)
Mixpanel lets you measure what customers do in your app by reporting actions, not page views.

Woopra (@Woopra)
No more guessing what customers did on your site or app. Know how engaged each customer is, and exactly what actions they performed — all in real-time.

Omniture / Adobe Marketing Cloud (@AdobeMktgCloud)
Analytics, social, media optimization, targeting, web experience management — and now cross-channel campaign management with Adobe Campaign — Adobe Marketing Cloud does it all.

Clicky (@clicky)
Real-time analytics.

Adobe Analytics (@AdobeAnalytics)
Adobe Analytics helps you create a holistic view of your business by turning all customer interactions, including offline data, into actionable insights. The marketing reports and analytics, ad hoc analysis, and data workbench technologies give you access to easy-to-use, interactive dashboards, reports, and visualizations. With the market-leading solution, you’ll better understand the whole customer journey.


Qualitative Tools

The Why

Qualaroo (@QualarooInc)
Analytics tell you what people are doing on your website. Qualaroo tells you why. Qualaroo insights lead to smarter tests and faster improvements in your website’s performance.

Survey.io (@QualarooInc)
Create an initial customer development survey.

Survey Monkey (@SurveyMonkey)
SurveyMonkey is the world’s most popular online survey software. We make it easier than ever to create polls and survey questionnaires for learning about anything from customer satisfaction to employee engagement. Sign up to access our library of sample survey questions and expert-certified templates. Customize your survey questions, distribute your questionnaire on the web, and start collecting responses in real time. Our Analyze tool helps you turn survey data into insights and create professional reports.

Olark (@olark)
Experience the easiest way to boost your sales, help solve issues and understand your customers with Olark live chat.

SessionCam (@SessionCam)
Session replay, heatmaps, and conversion funnels.

Inspectlet (@Inspectlet)
Analyze user behavior instantly with eye-tracking heat maps, screen capture (record and playback actual visitor sessions), and user-interaction analytics.

ClickTale (@ClickTale)
ClickTale takes the guess work out of website optimization, conversion analysis and usability research. Knowing how visitors use your website will enable you better target specific audiences, improve customer satisfaction and increase conversion. Use ClickTale to analyze the performance of your online forms, keep visitors engaged in page content, and lead them through the conversion process.

CrazyEgg (@CrazyEgg)
The original heatmapping technology.

UserTesting (@usertesting)
Get videos of real people speaking their thoughts as they use your website or mobile app.

FiveSecondTest (@fivesecondtest)
Fivesecondtest helps you fine tune your landing pages and calls
to action by analyzing the most prominent elements of your design.

Silverback 2.0 (@silverbackapp)
Guerrilla usability testing software for designers and developers.

Hot Jar (@HotjarApps)
All-in-one analytics and feedback.


Testing Tools

The How & When

Optimizely (@Optimizely)
Increase engagement, interactions, and conversions.

Unbounce (@unbounce)
Marketers: build, publish & A/B test your landing pages without I.T.

Ion (@ioninteractive)
Easily create and test app-like digital experiences that generate leads, enhance brands, and drive revenue.

Visual Website Optimizer (@wingify)
Create and test different versions of your website to continuously discover the best performing versions that increase your online sales.

AppsFlyer (@AppsFlyer)
Mobile apps installation referral and conversion tracking service.

Adobe Target (@AdobeTarget)
Most marketers want to test and target but don’t think they have the time, expertise, or tools. Adobe has simplified it to a click.

Yozio
Yozio makes it easy for organizations with mobile apps to develop a deep understanding of their users and drive acquisition, engagement, revenue and retention.


Workflow Tools

The Learning

workflow_tools

Google Drive (@googledrive)
Drive starts you with 15 GB of free Google storage, so you can keep pictures, stories, designs, drawings, recordings, videos — anything.

Panic (@panic)
We make Macintosh software: Coda, Diet Coda, Transmit, Unison, Prompt, and more.

PowerPoint
Build the story, present with presence and inspire your audience

Excel
Unlock insights and tell the story in your data.

Experiment Engine (@expengine)
Build your testing plan, source variations, run experiments, and gather results–all from one platform.

Python (@ThePSF)
Python is a programming language that lets you work quickly and integrate systems more effectively.

Geckoboard (@geckoboard)
Use data to make better decisions and motivate your team.

Confluence (@atlassian)
Give your team one place to share, find, and collaborate on information they need to get work done.


Company Stage Matters

Company stage matters when conducting CRO. Morgan Brown goes into detail about that here.


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Customer Success, Growth Hacking, Metrics, Sales

Customer Success Has a Quantifiable Impact on Revenue ft. @KateLeggett

customer-success-has-a-quantifiable-impact
Image created by Yasmine Sedky (‏@yazsedky).

“You can grow through massive Customer Acquisition, but the best companies out there are growing through Customer Success.”

—  Lincoln Murphy

Customer Success is a topic that every Growth Hacker, Marketer and Startup Founder needs to know about in order to take advantage of the most effective methodologies for reducing churn and increasing retention for SaaS companies.

For that reason, I took the time to dissect the content of the very impressive webinar by Kate Leggett: ‘The Economic Value of Customer Success.’ This is, by far, the best webinar I attended in 2014.

I hope you find these notes useful.


Main topics:

  • History
  • What does all this have to do with Customer Success?
  • The Three Dimensions of Customer Success Management
  • First Dimension: Reduce Churn (& How to Calculate It)
  • Second Dimension: Increase Existing Revenue
  • Third Dimension: Influence New Sales
  • Customer Success Drives Team Performance
  • Conclusion
  • Bonus Video: Reduce Churn and Drive Revenue With Customer Success Management
  • Bonus Video: How to Drive Growth With Customer Success Metrics

History

Social media has ushered in the age of the customer.

Customers now control the conversation due to a shift to user-generated content. This means that businesses must become more focused on delivering experiences that are in line with customer expectations.

Our world is moving to a subscription-based economy.

Instead of buying products, we’re subscribing to services on a monthly basis. Examples: Netflix, Amazon Prime, Spotify, and so on.

This means that industries are transforming their business models to embrace the subscription economy.

This business model is prevalent among enterprise companies:

  • 13%of enterprises will be implementing SaaS within the next year
  • 14%of enterprises have implemented SaaS
  • 21%of enterprises will be expanding their existing SaaS implementation

There’s a whole set of software categories that are rapidly moving to a SaaS delivery mode

and some have already seen significant success — learning and talent, sales automation, HRMS, and e-purchasing.


What does all this have to do with Customer Success?

Because of the subscription-based economy, relationships are becoming more important.

In this economy, businesses are required to build long-term relationships with their customers. These relationships are validated every month as customers renew their subscriptions. Because it’s more expensive to acquire new customers than retain them,

making customers successful is the most strategic approach to business growth in the new economy.

Good relationships have business value.

A customer that is happy with your products is a loyal customer.

Loyal customers:

  • Are willing to spend a larger wallet share, leading to increased CLV
  • Are more willing to consider additional products and services
  • Are less likely to churn
  • Will serve as a brand advocate

Revenue uplift due to customer loyalty can be quantified, which is the basis for Customer Success Management. As well, good relationships help reduce costs.

Because managing customer relationships has a quantifiable revenue impact, businesses are now investing in Customer Success.

(In fact, according to Jason Lemkin, Co-Founder and CEO of EchoSign, 80% of growth comes from existing customers.)


The Three Dimensions of Customer Success Management (CSM)

Customer Success Managers actively:

  1. Manage customer relationships to reduce churn
  2. Increase existing revenue
  3. Influence new sales

Customer Success Managers help businesses get greater economic value out of their current customer base.

First Dimension of CSM: Reduce Churn

Customer Success Management helps reduce churn.

Companies follow a standard growth trajectory. When a company is starting out, all of its energy goes into acquiring customers. As it grows, there’s a focuses on retaining customers and minimizing churn. Once the company is established, there’s a focus on expansion through cross-selling and up-selling to customers. And during optimization and transformation, time and resources are spent on engaging with the most profitable customers and defining standardization for engagement.

During business growth, CSMs tier customers.

For each tier, there will be different engagement strategies.

Along the way, churn becomes increasingly important because a larger percentage of revenue comes from existing customers.

To calculate the impact of churn:

Net New MRR/ACV = New MRR/ACV (New Customers) + Expansion MRR/ACV (Existing Customers) – Churned MRR/ACV (Lost Customers)

MRR = Monthly Recurring Revenue
ACV = Annual Contract Value

The negative impact of churn can be quantified.

In the chart below, all else the same, the company that follows the green trajectory has a 95% retention rate and the company that follows the orange trajectory has an 80% retention rate. Five years later, the green company has only lost 30 customers but the orange company has lost 120 customers. This leads to a difference in two-million dollars in revenue.

Churn is dependent on deal size.

There’s a correlation between average deal size and retention rate. (This data is based on a study of over 200 SaaS companies.)

Second Dimension of CSM: Increase Existing Revenue

Customer Success Managers help customers realize the economic value of the products and services they’ve bought.

They have all the information about how customers are using the product. They understand their customers’ business goals and how the solutions that they’ve bought are helping them maintain a need-to-use business goal.

Using this data, Customer Success Managers help both the customers and the business to quantify the economic value of a purchase.

Third Dimension of CSM: Influence New Revenue

Customer Success Managers influence new sales by increasing advocacy.

Brand advocates are highly satisfied customers and are more valuable than average customers. Advocacy activity — such as positive ratings and reviews— have a positive quantifiable impact.

Brand advocates will also buy your products and services again.

They spend close to twice as much or more on products and services than the average customer and they act as a virtual sales force, driving new sales.

In the chart below:

Blue — Original purchase
Red — Upgrade bought in the second year
Yellow — Upgrade bought in the third year
Green — An advocate moving to another company and buying your product again
Purple — Revenue generated from advocacy activities


Customer Success Management Drives Team Performance

A hidden benefit of CSM is that it drives team performance.

To be successful at CSM you need to have discipline in four areas —

engagement strategy, engagement process, engagers, and engagement levers.


Conclusion

We’ve moved to a subscription-based economy — products and services are being consumed as SaaS. In this business model, being able to manage customer relationships to drive greater economic value is becoming even more important. Good relationships will increase customer loyalty, decrease churn, increase CLV, and help customers become brand advocates to influence new sales.


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.