5. Not All Customer Success Metrics Matter. These 5 Do.
- Claudius

- Jun 29
- 2 min read
Most Customer Success dashboards are full of noise.
“We resolved 500 tickets.”
Cool.
“Our average response time is two minutes.”
Great.
But here’s the real question:Is Customer Success helping us grow?
Speed and volume sound impressive. But they don’t tell you if CS is driving retention, expansion, or ARR.
The best CS teams focus on the metrics that move revenue. Here’s how to separate impact from activity.
Stop Tracking Vanity Metrics
Activity metrics might look good in dashboards, but they rarely tell the full story:
Ticket resolution counts
First response times
CSAT scores after support calls
These are signals of service, not growth. What you need are metrics tied to revenue outcomes.
The 5 Customer Success Metrics That Actually Matter
1. Net Revenue Retention (NRR)
Why it matters: NRR is the single most important number in SaaS. It shows how much recurring revenue you keep and grow from your existing base.
Formula:(Starting MRR + Expansion MRR - Churned MRR) / Starting MRR x 100
NRR over 100 percent means your base is growing
NRR below 100 percent means churn is dragging down your growth
Benchmark: Companies like Snowflake and HubSpot run at 120 percent or higher.
2. Gross Revenue Retention (GRR)
Why it matters: GRR strips out expansion and shows pure customer retention.
Formula: (Starting MRR - Churned MRR) / Starting MRR x 100
GRR above 90 percent indicates strong retention
GRR below 80 percent points to deeper churn or product issues
Reminder: You can’t scale if your base keeps slipping away.
3. Time to Value (TTV)
Why it matters: Customers who don’t see value early often don’t renew.
What to track:
The time from signup to first meaningful outcome
The number of steps it takes to get there
Benchmark: Customers who reach value within 30 days are three times more likely to stay.
4. Customer Health Score
Why it matters: Your health score should act like radar—it should warn you before churn hits your numbers.
Inputs to include:
Product usage frequency and depth
Support ticket volume and trends
NPS responses and customer sentiment
Pro tip: Low score? Don’t wait. Trigger proactive outreach now, not at renewal time.
5. Expansion Revenue
Why it matters: Expanding existing customers is more efficient than landing new ones.
What to track:
The percentage of customers who grow their contracts
The share of total revenue from upsell and cross-sell
Watch for: Flat expansion signals missed opportunities. CS and Sales should partner here.
Final Thought: Measure What Moves Revenue
This is the scorecard that matters:
NRR and GRR reflect your retention and customer value
TTV and health scores help you predict churn
Expansion revenue shows whether CS is driving growth
If you want to turn Customer Success into a profit center, start with better metrics. Measure impact, not just activity.
Ready to See Where CS Can Actually Drive Growth?
If you are unsure whether your CS team is set up to retain and grow revenue, let’s talk.
On our first strategy call, we will:
Compare your current CS metrics to industry benchmarks
Identify where expansion revenue might be slipping through the cracks
Build a simple, 90-day plan to turn CS into a measurable growth driver
Just shoot me a message or grab time directly. I’d love to connect.



Comments