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we're going to be talking about the metrics that matter and my name is Dave Blake I'm the founder and CEO of client success and so grateful to be here with with all of our friends and the customer success Community uh thank you for coming and please if you have any other friends who who aren't here today um share share the information we'd love to have them come at our one of our future webinars today we're going to talk a little bit a lot about metrics now there's a lot to cover I think in the the email we said we're going to do our top 10 metrics I actually doubled that for you so we're going to do 20 today and we're going to cover a lot and we'll go fairly quickly there's a lot of definitions a lot of calculations again please share your feedback at metrics.clientsuccess.com if you have feedback suggestions for more to add and we'll compile all this uh in our recording and in a some other content that we'll be able to share out with you so that you have either the definitive guide to customer success and SAS metrics today we're going to focus on um four categories of metrics today uh the first one is revenue everything about Revenue right now revenue is King it always has been and always will um as customer success teams our job is to help maximize retain and grow that revenue and so we'll talk a little bit about some of the revenue metrics we'll talk about health related metrics usage related metrics and it what I would call experience related metrics now I'm going to cover a handful I may not cover all that you expect and I may cover some that you know very well that you've you've been using for years and years and I hope that's okay well I hope that what you do we are able to find is a little bit more clarity on some other metrics you might use or some to add to your dashboards or your regular measurement and Reporting and hopefully give you a perspective on some metrics that might be helpful to to deepen your understanding and your use as you drive insights and analytics throughout your organization to take care of your customers but also to help uh to grow and expand your your company's business so let's Jump Right In again if you have questions um if you have a chat jump it in the chat if you have questions send it in the Q a and I'll watch those and we'll we'll hit some at the end so let's jump in all right the first one we'll start on our Revenue metrics let's jump in there now there's there's several that I'm going to talk to you a little bit about today we'll start with some of the basics gross revenue retention or grr net revenue retention gross renewal rate net renewal rate we'll talk a little bit about the differences there um customer logo or customer logo retention numbers quick ratio and csqls or CS qualified leads now before we get into the details of these there's a couple um caveats and terms that I want to share one is that just understand now as I go through these realize that there are some people who calculate metrics differently I tend to keep them very basic and use the most basic uh definitions or calculations that I that I've been able to find or we have as a company but some of some of these metrics can be calculated in very Advanced ways and and again Ed Powers is one who's very good about really um helping you help and understand Advanced analytics and data-driven Leadership I tend to keep it simple so you'll see that today everything that I've done has been very uh very uh aligned to that philosophy of keep it simple some people use different metrics so you may see some metrics in here that you may see some that are missing that you think oh Dave you missed this one or that one hey I get it I'm just I'm just sharing you uh 20 that I that I really like and certainly there's many more that I use and we report on internally or to our board that that I haven't shared here I typically have tried to focus on metrics that are more focused on a customer success team those that you can impact in some way or another certainly not entirely but you can impact or influence a lot of these metrics but there are many others that I didn't include here that uh assess any SAS business would also measure the next thing I'd say is that sometimes people use different terms uh sometimes people use different terms differently and then sometimes uh some focus on churn or what I would I refer to them as negative metrics say kind of the churn side of things others focus on retention the opposite which is the inverse or the retention metrics or what I would call positive metrics I'm typically a glass half full guy so I look at retention numbers versus churn numbers and realizing that they're certainly the uh the inverse but that those are that's where I'm going to focus today also for the presentation today a lot of people report them in different in different styles either ARR or mrr I'm going to focus on ARR today but certainly in most of these you could replace them with mrr and have a very similar calculation um I'm going to refer to expansion a lot and that in in what I do if I do it all alone it just know that I'm also talking about two separate things uh upsell and cross-sell again those sometimes I've seen people use a different definition for upsell and a different definition for cross-sell I typically say that upsell is more of the same products that they've already bought and cross-sell is purchasing when a customer purchases a customer uh product or service that they've never had before that's my definition and again your company might use a slightly different definition churn sometimes I'll broad broadly talk about churn as a whole um and um and but know that that sometimes that means specifically churn I've lost a customer and their revenue or lost a product or excuse me oh and then downsell which is I've lost I've kept the customer or the logo but I've lost revenue from that they've contracted sometimes you call it contract action or other or other downgrades or different things and then there's some interesting as an example of using different terminology sometimes people use grr and it make some people might think of uh refer to it as gross revenue retention others might call it gross renewal rate they're slightly different metrics and I hope to unbundle that a little bit and certainly those here keep keep me honest if if you have it now again there's a bunch of other metrics that we won't cover unit economic metrics in those but we'll focus on on these metrics now so let's jump in um so the first thing I just want to want to unbundle a little bit which I find is somewhat confusing uh from for many individuals is the difference between revenue retention when I talk about a revenue retention number versus a renewal rate um I I don't know that this image does it justice but basically in in my mind when I think of Revenue retention I'm thinking about the the um retaining revenue from from a cohort of customers over a period of time um including any what we call mid-term upsell downsell um or or expansion um or contraction during that period and and also including the renewal so it's everything uh all the revenue changes during a particular period of time is what I would refer to as Revenue retention whereas renewal rates are very specific to that renewal transaction so I may have a customer that that changes their their revenue profile with me throughout the year they may add seats they may drop seats they may drop a product they may add products um that that all the changes in Dynamics for the individual period are inclusive from a revenue retention standpoint where if I'm talking about renewal rates I'm very specifically talking to transactions that happened at and with the renewal so certainly the renewal um and but also any transactions that come with it and depending on whether we're talking gross or net we'll talk a little bit about that but I just want to unpack that a little bit in in slightly differentiating and again welcome any feedback on the chat if if you can articulate that a little bit differently or look at it a little bit differently but setting the stage I just wanted to unpack those differences so with that let's first talk about gross revenue retention again gross revenue retention is a key metric uh that everybody should pay attention to the way that we've defined it is the percentage of recurring Revenue whether it be ARR mrr a company is able to retain for any given period but gross revenue retention only considers the starting revenue and any lost or Revenue through downsell or churn so start with certain amount of Revenue in a certain cohort and I watch any Revenue that we've been able to retain um and those that and include those that are lost or down or or down sell through through loss through churn or down sell you'll see a simple um in all of these slides you'll see a simple calculation again we'll send these out so you don't um we've recorded this and we'll send this out so that you have them but that's how we would look at it notice that in gross revenue retention we are not we're counting all the transactions the revenue changes during the period for that cohort but we're not including any expansion Revenue it's purely what we started with and what we lost and therefore what we've retained gross revenue retention can never be above 100 because of that because we're not including expansion so there's no expansion that offsets it so usually it's 100 or lower and depending on your your category which customers you are targeting your your grr may be in the 90s 90 to 100 or lower if you're more mid-market SMB um certainly down um lower if if you're an SMB okay the next one the the companion uh metric is net revenue retention this includes similar but it does allow you to um calculate an ad expansion as the offset for for churn or down sell so if this is any any Revenue a company is able to retain and expand for a given period of time and it considers expansion Revenue that offsets down sell insurance critical metric and and again one that that um that customer success team impacts in in many different ways and in driving value uh retaining helping to retain customers and then driving expansion whether it be cross-sell or upsell during a given time net retention Revenue retention the benchmarks For That Vary as well whether your Enterprise many Enterprise customers have are over 100 never net revenue retention and then whether you're mid-market or SMB that it may be under 100 but that's uh that's a key key area um gross renewal rate um we will all that's this is where we'll distinguish so when I think of renewal rates it's very different I'm talking about the uh the the change in revenue for those um transaction those renewable dollars in any given period I call the renewable dollars uh renewable book of business um our Bob it's rbob renewable book of business um so we typically look at the starting renewable book of business for any given period so whether it be a month a quarter or a year and the gross renewals how much of that we've been able to renew within that uh only only considering down sell insurance we do not look at expansion Revenue so gross renewal does not include any offset from expansion Revenue that happened at the time of the renewal and again the way we look at it is we're very specifically looking at the transactions that the renewal transaction and any change in Revenue at that time with growth looking at down sale in churn against the renewable dollars um the next one is net renewable this is where you can where you do calculate it where it offsets the expansion Revenue it's a that is included as part of the renewal transaction so you start with your uh renewable book of business and you calculated with that that which is renewed minus down sale minus churn plus expansion over the initial renewable book of business okay um Ryan I got a great question um he's asking how does nrr and ndr um differ um for me they're they're interchangeable some people use them differently as separate metrics but for me they're interchangeable I'm just looking at the dollars or the the revenue retention and RR is net revenue retention ndr is net dollar retention similar things for me again others might might look at that slightly differently hopefully that helps Ryan okay another way to look at this I like to see this uh this is the way I love to look at it which is a what we call a renewal um uh waterfall chart so this to me again everybody's different but I like this because it helps me visualize where I start from and where I end and so in this case you look on the far left the way that you read this is you look at your renewal renewable book of business so all the dollars that are up for Renewal during that that time period and then you subtract the churn dollars so if I start here and I subtract churn I subtract any down cell during that period um that would give me my gross renewal so renewable minus churn minus down sell is my gross renewal rate okay renewable dollars or renewal rate and this um just random example if you started just under 350 and renewable book of business and you end at 284 it's about 81.3 percent gross renewal now to get to net renewal you step back up you've stepped down to gross and you step back up for it to to net so you have upsell um that that um that you add on top in this case in this example there was no cross-sell and that gets you back to your net renewal which in this case is right around a a 99.4 percent in this example so a formula of renewable minus churn minus down cell equals gross then you add to the gross the upsell and cross-sell and that's how you get to your um due to your renewal again I love the waterfall chart it just gives me a really good visual of what we're doing this is an example of like uh and you'll see some of these that we have in our product that our customers use and and we use to be able to visualize all of these metrics throughout our our platform and and others if you don't have a customer success platform like client success certainly any of these can be can be built out in spreadsheets sometimes it's just um across spreadsheets and using uh dashboards within your spreadsheet but this might be an example that you can look at this okay okay next one customer or logo retention I I use it as either one this tells me how many logos I'm retaining and again this is the inverse is customer churn or logo churn but this is the percentage of customers I've retained over a given period of time sometimes referred to as logo retention or customer retention basically the way that you do it in a positive retention way is you take the customers at the end of your period you'd subtract out any new customers because you're looking at a cohort and then you um divide that by the number of customers at the start of the period so this is where you would be able to see um uh the customer logo retention information um uh for for the how you'd calculate customer or logo retention the next one I'd share is one that I kind of kind of like it's interesting intro the differences uh between growth and revenue and and churn in revenue and loss of Revenue it's called quick quick ratio um and this measures growth efficiency for a South company comparing Revenue growth that comes from new and expansion Revenue versus Revenue churn that that happens through uh you know logo churn and downsell um the you can see it's a very simple calculation you just take all the the new um the new AR and your expansion ARR and you divide it by down cell and churn ARR and that gives you a ratio and with that ratio you can determine whether how how efficient or how um strong your growth rate is when you get that ratio you'll see that if you generally if you if the ratio is in under two then you're having negative bad growth is what they would say sorry the the um the graph wasn't exactly right but you would have bad growth that means you're losing too much revenue um versus your your new uh growth in Revenue if it's between two and four that's a healthy growth and if it's above four that means your strong growth that means you're growing significantly more than you're losing Revenue so it's a really interesting metric to use to to understand um how how the company is is growing over time the other the other way that you might look at this I like it this way as well is it dashboard like this where you might see the blue is your new Revenue Orange's expansion red is is churn and yellow is down sale so in any given month if I just look at those if I do a stack bar chart that goes negative goes positive and negative you can just even visually see which months you're doing you're doing well versus you're not so for example in this month not a bad growth ratio versus this month here in March which is basically all the all the growth that I've had have been lost through downsell insurance and so this is a really good way to kind of just quickly visualize to see whether your growth within your company is is strong growth or not okay for all the who are um who are sending in the questions if you have questions or comments comments in the chat questions put in the Q a and I'll get to those uh in a bit okay next one csq qualified leads this is a good one I think a lot of people have been doing this recently just kind of gives it helps us give attribution to customer success teams to understand how much how much we're driving new leads to the business so csqls is the number of qualified leads identified by the customer success teams for a potential expansion within the existing customer base I kind of keep it very specific I know that there's another metric that we use we call second order Revenue which is how much influence in new Revenue come from former customers but this one is is is more focused on how much how many leads are you driving within the new customer base for expansion Revenue now sometimes some of you in the customer success some of you customer success teams like own the expansion Revenue so you're you're you're basically servicing these leads for yourself they're self-service leads others pass that on to either a sales team or error account management team or an expansion team and so you're you're passing those on for them to work these leads and drive them to closure I think it's important to just keep track of them and there's a couple different ways these not necessarily a calculation but just keep track of the total csqls that your team is driving the number of deals that were closed because certainly we want to optimize on on closed deals and then the amount of Revenue close and so you can have proper attribution to to your team um and so it's it's a helpful one some people like it some people don't um Richard it uh I know that uh it's some people feel like uh CSM should not be involved in the sales process at all or not own Revenue I tend to disagree but that's a debate for another day and another time I'd love to have that with anybody okay so those are the revenue metrics now again there could be a ton more those are just a handful that I I would share today for for you to consider let's move on to health metrics tricks just know that some of these are just general insights that you could share some of them are subjective some of them are are um uh are have to be very specific and tailored to an individual customer uh or or an individual company but I want to share some some ideas of things that that hopefully you're doing if not maybe you could Implement a few of these so we'll talk a little bit about overall health scores um that's you know debatable whether it's a metric but it's an indicator that I think it's important um a pulse indicator which which we'll share with you time to onboard time to First value customer engagement metrics and outcomes achieved so let's let's dig into these and just as metrics or concepts as a Whole Health score I hope everybody has some kind of Health score again Dave is I'm I'm the kind of guy who is very keep it simple so I do not tend to have very complex overly uh ver verbose or complicated Health scores I'm all about really trying to dial into the simple a few key metrics that are important but basically Health score is a composite score that that helps you understand um insights and hopefully leading indicators around customer risk and opportunity I think a lot of people think of Health scores as risk mitigation but also if you do it right it should be an area where you could really dial in into opportunity identification so from a health score perspective um uh there's a couple different things there's here's an example of kind of a framework that we have in our product but there's a lot of different things that could go into a health score whether it be product usage data which we'll talk about later engagement data license utilization support ticket information csat or MPS data billing information are they paying their bills um other other things are they expanding or Contracting there's a lot of things and and frankly every company um each of you will likely have at your company very different and unique Health scores there's not necessarily one Health score framework or ideology that would that fits everybody and so the process of defining your health score is a matter of experimentation trial and error and and fine-tuning and calibrating over time but if you can get there it's beautiful it allows you to have better insight to be able to be proactive on some metrics maybe in some cases reactive but but you bet rather be reactive in some cases than be blindsided all together so my my suggestion my recommendation as health score is start simple focus on three to five metrics maybe or indicators and then expand if yours has 20 30 40 my my guess is that it may be too complex and it may be trying to be all things to everybody if you found one with 200 30 kudos to you would love to hear about it but start small and go from there okay one so here's this might be controversial but but I'm a big believer of data-driven insights around Health typically through an automated Health score also human driven insights are around health because a lot of times and we're getting better and better as as technology gets better and better that data driven you can have false positives and false negatives and so I am a really big believer in our company is a big believer in um in getting insights from the team who are engaging with the customers on a daily weekly monthly or quarterly basis we call it customer pulse it's basically just a subjective indicator from the CSM who gives you an assessment of Health usually it's a simple red yellow and green scale or some kind of that with insights around and reason codes of what why they are healthy or why they're at risk we look at both factors we look at risk factors we capture those and report against those and we also report and capture success factors because a lot of times you will have just as much success in improving your business of doubling down on those things that are working within your customer base as you will of solving the the risk factors within your customer base it's a secret sauce that you should consider is measuring success factors as well as risk factors so we do that and we measure it in detail and do it through our product we look at the number of customers in each status and we look at the ARR in each status because you may have if you have a hundred customers you may have 20 customers who are red blaring red but they may only contribute five percent of your Revenue whereas you may have uh you may have three customers that are read that that contribute to twenty percent of your Revenue so it's really important to look at these these numbers by customer count and by Revenue we tend to focus more on Revenue than customer count because um because that usually is is where we try to prioritize is revenue risk and revenue opportunity um the last one is to look at reason codes have a really good list of risk reason codes categories and subcategories not too many again keep it simple but but capture that information and report on it and then every quarter take your top three risk reason codes and and work cross-functionally to try to remove those uh those barriers and those those experience challenges uh throughout your customer base then also do the same with your top success ones look at the top three success factors and figure out how you can double down on those or attract more customers who love those those types of those successes through your product so that's the next one this is an example about how to build a build a matrix to definitions around different types of categories how to report against them uh both both percentage-wise and revenue wise but also by by reason codes certainly some examples that you could do to to be able to track it whether you do it in a customer success platform or in spreadsheets or whatever makes sense for you okay another one I'll I'm looking at the time we will I'll speed up a little bit one that's really important is time to onboard um how long it takes the average number of days it takes to successfully complete customer onboarding or to get a customer up and running live certainly a key indicator customers don't buy our products to spend all of their time in onboarding so one factor that might be interesting from a health standpoint because churn starts with the go live um uh is to to measure the the time to onboard it's just simply the number of days from kickoff to to onboard complete to go live and then look at it and say hey can we optimize this better can we can we bring it down from I don't know what what might be in your product maybe it's 90 days to 60 days can we bring it from 60 to 30 can we bring it to 30 to 10 whatever it may be how do you optimize that experience while still delivering a great onboarding experience um to be able to make sure that the customer gets up and running quickly so they can leverage all the goodness of your platform so that that might be one a companion metric that people a lot of people like to use um uh is time to First value and uh that that is maybe a little bit different than time to onboard because sometimes people could receive value during the onboarding process and that's that's a great best practice is is have somebody have a wow experience with it as quickly as possible maybe the first day they log in can they do something that brings value to them so the time to First value is very different for each product it could be during onboarding it could be after onboarding but how do you how do you track that to be able to understand now the key is figuring out what is the primary metric that you want to use to that defer that determines time value and that is the difficult part is to look at all these different things that that your customers could do or are doing your platform and identify the the magic metric that tells you that they've received first value so with slack I believe it was the number of messages that were were done within within a slack workspace it's like 200 messages was when they determined that value was there I can't remember it's 200 or 2 000 but that was their definition of value that that value metric so figure out what your value metric is and then measure it Dustin had a um a good question it seems like onboarding is an internal metric versus external true it but it is gives you an indicator of the the external customer experience and gives you insights to improve that as an internal team to improve that um the other question about how do you divine value values different for everybody the way that typically that that I we we would recommend is identify factor in your platform some kind of value Trigger or value um workflow or outcome in your platform identify what that is what is what is it customers are doing and that that adds immediate value that they would Define as yes I I've seen results I've seen value um that and try to find something that's consistent across all your customers and use that as the trigger as the identifier there the other one is is to measure customer engagement certainly Health a healthy customer many times as an Engaged customer engagement can be measured in different ways one is direct engagement with the customer although in this day and age with product-led growth and and other things there's sometimes that's not always the case sometimes we have digital engagement sometimes we have high touch engagement but are your customers engaging with you and are they engaging with the product we'll talk about product metrics later but this might be if you're you're the type of company and product where your customers would regularly at some Cadence engage with you um that is really important to measure that um I always say embrace your most vocal customers and be worried about those that that you don't hear from because it's the silent customers that sometimes um are the ones who don't care about so um different ways you can you can measure engagement was days since last touched how many days since we've been able to engage with them you could say last touched or last engaged those are two different ones some is like when when did we last reach out to them another one maybe when uh when was the last time the customer engaged with us in either a phone call meeting a message uh email or what have you the number of touches might be important how many how frequently are you engaging with your customers and then the the frequency so is it is it monthly weekly quarterly what what's the Frequency that makes sense for each of your customer segments and each of your customer base based on your your particular product okay and then the last one is um is outcomes achieved I don't love the term outcomes I know that a lot of people use that I may again I may say a few things that are controversial I prefer goals or key business objectives but basically um an ideal metric around health I think we think this is kind of the best health indicator is how how often you're achieving a result for your customer um that may be standard objectives and and and results that you that your your product is very clear that it delivers or it may be um goals objectives and business requirements that you define with your customer and document so in our platform we we uh we have a thing called goals where you can you can capture your customer goals and you can track them to completion and so simply being able to do that uh be able to understand how many goals you've been able to accomplish with your customer or for your customer or outcomes or objectives is a critical Health indicator as well if you're continuously helping to achieve uh customer objectives it's highly likely that you'll be able to retain them over time based on based on um based on experience and data so some way of being able to capture that this is this is as much art as it is science I will say because it is hard to hard to do but those who are able to do it it's it's money um to be able to do so okay um some are asking if we're going to share the deck yes we'll share the deck in one form another either as this deck or in a uh ebook but happy to share this and we'll also share the recording as well if you want to go back and look at that one as well okay usage we've got two more categories and we've got about 20 minutes less less than 20 minutes so we'll go fairly quickly so we can get to some questions usage I've only got four here um I I distinguished between product usage and adoption um you might calculate uh license utilization and time spent certainly there's there's many more I'm just touching on some of the basic ones that that you should do it one that I like from a product usage is daily active users um and um versus monthly active users basically just like looking at the number of unique daily users in any given day who've logged into your platform as a percentage of monthly unique monthly active users uh over the last 30 days or the last month just gives you an A A indication of like are they coming frequently what's the what's the frequency of people coming back within the same month and those types of things just a very standard uh product usage metric that might be might be helpful um the second one is that around product adoption um I the differentiation between usage is is more around frequency in my mind adoption is more on breadth of leveraging your product in depth are they using broader features and I think it's always best to you know you can you can measure across all of your features but I think it's really good to identify what are your what we would call your value features if you have 10 different features are there two or three that drive the most value for customers or are they using that at the breadth and depth that you would hope so um so that's that's how I look at the difference between usage and adoption and then the third one is license utilization again some might might look at these as the same but basically saying for those that are selling um uh those that are selling uh seats still some people don't sell seats they sell unlimited seats basically just looking at the number of of paid licenses or seats that are being used versus those that have been purchased in the contract certainly if one of your customers paid for 50 licenses and they're all using three that's not a good thing but if they're paid for 50 and they're using 50 and what 10 more that's a great thing so being able to track license utilization is a key indicator from a from a usage as well okay and then the last one you might might consider doing it and there's some products out there that allow you to do this is time spent product so um so this is basically uh how long they're in in the product how long a user is in a product now there are some products that somebody could log into every day for for one minute and get tremendous value out I use one of these products to myself I look at this product every day but I'm in it for like 30 seconds and it still provides a ton of value but there's other products like I would you know a product like ours we would we would we would look for our customers to use our product every day all day at because it's their primary platform to manage the customer experience and customer success so we would want to see time in product for a long period of time crms are like that and other products are like that so the key on this one is to really Benchmark what you would expect to be a um you know the various benchmarks of of um good usage versus bad usage from a time spent and from a log in perspective and then measure your customers in that perspective and understand both who are your power users and also who are your customers are at risk because they aren't using or aren't using seats or in the product enough or in the product frequency so again there could be a ton more usage metrics um and those are those are four that that perhaps you could you could explore if you haven't done so already okay the next one um is experience metrics so um some might call these uh survey or or whatever I call them user experience just to understand the overall user experience now again I know there's some haters out there on some of these metrics fair enough My Philosophy is any um any insights I can get around the overall customer experience and any feedback I can get from customers is super valuable I'll take any feedback I don't use these these metrics to to um to forecast my renewals on entirely or to comp my csms or any of those I simply use these metrics as various signals and ways to get customer feedback the more I can get that the better and so we look we we look for ways to get customer feedback in multiple ways three here that you might look at is MPS csat and customer effort scores so NPS again a lot of a lot of people who hate MPS he says this is old and out outdated I personally um like it in the context in which I said in that any feedback for me is helpful to understand uh the overall customer experience so we certainly love uh to get feedback it gives us insights we're able to see it by um by profile we we know who our users are which executive sponsors which key contacts did um what what score they all gave so I can look at it by by profile I can look at it by those that have have comments or not super helpful and so again you may not like MPS or think it's outdated I would just encourage you to find any way you can both um quantitatively and qualitatively to capture feedback and leverage that don't place any more weight on one than another just that value feedback and ways to get it so NPS is one for us the easy way to do that is is MPS down for your net promoter score it's a simple question of How likely would you recommend a product solution company to a friend or colleague and it measures on a zero to a hundred it's captured and calculated by looking at the percentage of promoters minus the percentage of detractors and a key thing about any of these is it's not necessarily as important as the current MPS score or survey score it's directionally how are you improving or digressing over time and and and look at those things the other one is csats the traditional csat Standard customer satisfaction asking them to rate their satisfaction usually it's on a scale of one to five or one to ten usually the reason why it's a one to five is so you um you keep it simple where one is very unsatisfied or five is very satisfied typically you just take the number of satisfied customers so fours or fives divided by the number of responses and times it by ten a thousand that might be a way that you you do it or just an average of over all the scores um uh that one I I tend not to use this one probably the least frankly um and then the last one is customer effort score I know a lot of people have used this this is talking this is trying to gauge the ease of interactions uh that your customers have uh with your business um I love that there's a book called The effortless experience the idea is like how can we how can we remove friction within the customer experience how do we make it easy for them to do business with us across all aspects of our business whether it be paying bills whether it be logging into our uh our product whether it be engaging with our support team whatever it is uh customer effort score can allow can help you gauge whether your customers feel like it's easy and effortless to do business with you or whether it's difficult and um and and they have to jump through a lot of Hoops and just difficult to do business with because I think many of us can can think of custom companies that are hard to do business with or you don't like to do business with them CES is uh the customer effort scores scaled on a scale of one to seven with one being difficult very difficult and seven being very easy typically you take the top two excuse me three three ratings uh five six and seven and divide that by the total responses and times it by by 100 okay so those are three different ways to look at that to just get feedback to gauge to understand directionally where you're going and be able to to uh to be able to understand obviously all of these if you can get comments that's critical and that makes it so much better so you have a little bit more context we we really um try to encourage comments even if it's simple one sentence comments but they're super helpful okay I've given you 20 metrics or 20 Concepts that hopefully you can use I have one more that's a bonus one that we uh that we introduced years ago I know a lot of people have shared it um over the years we we introduced it many many years ago we called it the ultimate question in SAS um I love this question this write down comes it covers Health covers it could impact helps a revenue um it can it can be an experienced one but the simple question that that we love to ask customers is this if your renewal was today would you renew the reason why we call it the ultimate questions is it's pretty it's it's a bold statement it allows it it forces customers to think deeply about the value and the relationship that you have and how how they perceive you as a partner and as a as a um as a product and there's very they they have to answer it directly so if you ask that customer we do it sometimes at the end of calls um or often at the end of calls just or uh um executive call or qbr or EBR or whatever you call them or just a simple um uh call um at different stages in the in their in the partnership but basically say if your Renewables today would you renew if they say yes then it's like great we don't rest on our Laurels but we we understand that we're we have some validation that we're driving value that they perceive the partnership to be valuable and they um and that there's a some level of confidence that they will renew if they say no you better ask some follow-up questions about why they wouldn't renew and what they could do quickly and over the course between now and the renewal date to change their answer from a no to a yes and if it's uh maybe hey you ask a follow-up question what can I do to earn a yes so sometimes they say ah possibly I don't know if I could tell you now but but it but maybe then you ask the follow-up question and you dive in and ask the other questions is which is what can I do to earn a yes money money question we love it it's straight to the point it's bold but it really gets customers to think deeply and allows you to dive in and understand what the true health of the of the relationship is and the propensity to renew so um hopefully that's helpful um all right so we've covered some metrics in Revenue Health usage experience obviously all of these are interrelated um and and hopefully you're already um you're already tracking many of these and and putting them to work in your business hopefully you're already sharing them with the rest of your company you're taking the lead on capturing them and sharing them and driving action from them but if you are looking for just some best practices if you're looking at this and you're like Dave oh my goodness 20 metrics I can't even do two right now and you feel maybe overwhelmed my suggestion is just to start simple start with two or three maybe one or two in each category um discuss them and align with your executive team on on capturing those and the value of them figure out how you're going to collect the data that's really important how you're going to report on the data figure out what the Baseline is for each one so that's really important to take a baseline so you know if you're progressing or digressing on on each metric and and work to improve then roll them out to your internal teams in the broader company you should and then hopefully you're sharing these to provide the visibility in your weekly meetings your monthly uh Town Hall reviews is a company or quarterly reviews and your annual annual reviews the more confident you are in being able to discuss your your metrics and these kpis and and these Concepts the more you'll represent your team that much uh better and and and you'll establish confidence with your executive team with your boards um and with your customers