{"id":2736,"date":"2020-11-12T10:00:00","date_gmt":"2020-11-12T10:00:00","guid":{"rendered":"http:\/\/138.197.200.24\/resources\/blog\/5-customer-success-metrics\/"},"modified":"2026-08-06T10:21:57","modified_gmt":"2026-08-06T10:21:57","slug":"5-customer-success-metrics","status":"publish","type":"blog","link":"https:\/\/www.smartkarrot.com\/resources\/blog\/5-customer-success-metrics\/","title":{"rendered":"5 Customer Success Metrics You Can\u2019t Do Without"},"content":{"rendered":"
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Customer success is a crucial consideration for businesses that provide solutions through a SaaS model. When customers use your service and derive measurable value, they remain as customers and present opportunities for additional revenue. Businesses can best measure those outcomes through customer success metrics.<\/p>\n

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Several metrics provide insight into the many factors that determine customer success. These metrics help understand and explain how a customer uses your solution \u2013 the number of customers you retain, the value of retained customers and those lost to attrition, and more. <\/p>\n

Many organizations find that they need to use several methods of measuring customer success, and also that metric needs can change during the customer life cycle. We\u2019ve highlighted five essential customer success metrics that provide insight and transparency for most SaaS companies and their customers.<\/p>\n

#1 Churn rate \u2014 how many customers are you losing?<\/h2>\n

Churn rate, or attrition rate, is the rate at which customers unsubscribe or otherwise cancel. Think of your SaaS business as a bucket. Your goals are to fill the bucket in an efficient and balanced manner. But in almost all cases, you want the bucket\u2019s contents to grow. Success, then, means you have to build a bigger bucket. Churn is like the holes in a leaky bucket. <\/p>\n

Churn is represented as
\na percentage of existing customers who do not renew. Churn rate can be monthly
\nor annual. It\u2019s essential to know whether or not the figure is over a year or
\nper month, because a five percent yearly churn rate may be acceptable, but can
\nsignal a massive problem if the rate occurs monthly. <\/p>\n

Churn rate is expressed
\nthrough the following formula: <\/p>\n

Churn rate = number of churned customers \/ total number of customers<\/strong><\/h4>\n

Determining an ideal churn rate can be difficult, and often requires a more in-depth probe into the reasons behind the churn, and whether those renewing are poised to continue renewing. Ultimately, it\u2019s paramount that your customers not only use your service but use it for their benefit.<\/p>\n

#2 Churn Rate By Numbers<\/h2>\n

There will be a churn<\/a> rate within any industry. Finding out what the usual churn rate within your industry will help you assess whether the churn rate within your company is higher or lower than it should be. It can be a measurement of the health of your company culture, as well as other elements. <\/p>\n

The following are some customer success metrics regarding the churn rate in a few industries within the United States that have a high churn rate, according to Statistica<\/a>. <\/p>\n