Customer Success Metrics

Being a Customer Success Pro means understanding how CS drives business growth and profitability. But Customer Success is not a destination—it’s a journey, and today’s episode will help you connect CS strategies with key SaaS business metrics to make a lasting impact.

In this episode of the Customer Success Pro Podcast, I sit down with Jay Nathan, COO of Churnkey and co-founder of Gain Grow Retain, to explore the evolving role of Customer Success in SaaS companies.

We discuss how CS leaders can align their efforts with business goals, the most critical metrics for SaaS growth, and how Customer Success is shifting into a strategic, revenue-driving function. If you’re a CS leader or aspiring CSM looking to elevate your impact, this episode is packed with actionable insights to help you succeed.

The Role of a COO in a Startup & Customer Success Alignment 

Jay shares insights into his role as COO at Churnkey, explaining how Customer Success must align with broader business objectives to drive long-term profitability.

Key Takeaways from Jay’s Leadership Experience: 

✅ Customer Success should drive revenue, not just retention – CS is shifting from a support function to a revenue-generating powerhouse.

✅ Agility is key – SaaS companies must constantly evaluate and adjust their CS strategies as they grow.

✅ CS needs to speak the language of executives – Understanding profitability, lifetime value, and retention metrics is crucial for making an impact at the leadership level.

Pro Tip: CS professionals who understand SaaS metrics will have a bigger voice at the executive table. Start learning these key numbers today.

The Most Important Metrics for SaaS Growth 

If you want to prove the value of CS, you need to track and report the right metrics. Jay breaks down the essential SaaS metrics every CS leader should know.

Key SaaS Metrics for Customer Success: 

📌 Gross Revenue Retention (GRR) vs. Net Revenue Retention (NRR) – GRR focuses on churn prevention, while NRR includes expansion revenue.

📌 Customer Lifetime Value (CLV) – Understanding how long-term customers contribute to revenue and profitability.

📌 Churn & Expansion Metrics – Tracking revenue loss, renewal rates, and upsell opportunities.

Pro Tip: Align your CS team’s KPIs with these business-critical metrics to prove the impact of CS on company growth.

Understanding Gross Retention vs. Net Retention 

One of the most important discussions in SaaS Customer Success is about retention metrics. Jay explains the difference between Gross and Net Retention and why they both matter.

Retention Metrics Explained: 

✅ Gross Retention (GRR) – Measures how much revenue is retained from existing customers, excluding upsells.

✅ Net Retention (NRR) – Includes expansion revenue from upsells, cross-sells, and renewals, showing overall revenue growth.

Pro Tip: CS leaders should focus on improving both GRR (reducing churn) and NRR (driving expansion) to maximize business impact.

How CS Can Drive Customer Lifetime Value (CLV) 

Customer Lifetime Value (CLV) is one of the most overlooked yet crucial metrics in SaaS. Jay shares how Customer Success teams can directly impact CLV and long-term profitability.

How to Increase CLV in Customer Success: 

📌 Proactive Engagement – Ensuring customers see value before renewal time.

📌 Strategic Expansion – Helping customers grow with the product through upsells and cross-sells.

📌 Data-Driven Decision Making – Using customer health scores and predictive analytics to improve retention.

Pro Tip: If you want to make CS a core business function, show how your work increases CLV and long-term revenue growth.

Metrics to Track in Day-to-Day CS Operations 

While high-level metrics like NRR and CLV matter, CS teams need to track day-to-day data that feeds into these bigger goals. Jay shares what CS teams should monitor regularly.

Key Operational Metrics for CSMs: 

✔ Customer Health Scores – Using product usage, sentiment, and engagement data to predict churn risk.

✔ Time to Value (TTV) – Measuring how quickly customers start seeing value after onboarding.

✔ Renewal & Expansion Forecasting – Predicting which accounts are at risk or ready for upsells.

Pro Tip: If you’re not already tracking customer health and engagement, start today—this data is invaluable for retention and expansion strategies.

How SaaS Metrics Evolve as Companies Grow 

As SaaS companies scale from startup to enterprise, the way they measure success must evolve. Jay explains how CS leaders should adapt their metrics as the company grows.

How Metrics Change with Business Growth: 

📌 Early-Stage Startups – Focus on customer acquisition, activation, and early retention data.

📌 Mid-Stage Growth – Shift to scaling CS operations, optimizing NRR, and improving GRR.

📌 Enterprise SaaS – Prioritize expansion revenue, advanced segmentation, and automation.

Pro Tip: As your company grows, adjust your CS metrics to align with business priorities at each stage.

Listen Now & Elevate Your CS Strategy 

This episode with Jay Nathan is a must-listen for CSMs, CS leaders, and anyone looking to connect CS efforts with business growth and profitability.

🎧 Listen on your favorite platform: 

🔹 YouTube

🔹 Spotify

🔹 Apple Podcasts

Want to take your CS career to the next level? 

✅ CSM RevUP Academy – My coaching program for ambitious CS professionals.

✅ AI Guidebook for CS – Learn how to use AI for smarter Customer Success strategies.

🚀 Bonus: Want to win a FREE pair of AirPods Pro? 

Sign up for a Vitally demo here: vitally.io/cspro

Connect with Us 

📌 Follow Jay Nathan: LinkedIn | GrowthCurve Newsletter

📌 Follow Anika Zubair: LinkedIn | YouTube | TikTok | Website