• laurenthibodeau

Are Your Metrics Customer-Centric?

“The subscription business model drives companies to focus obsessively on customer needs, and strive to earn their trust every day.” - Bessemer, State of the Cloud 2022


How customer-centric are your metrics?


SaaS companies do or should obsess over company-centric metrics like ARR, ARR growth rate, net dollar retention, logo churn, customer acquisition cost, and so on.


But equally important, if not more so, is the need to obsess over customer-centric metrics that serve as leading indicators for the metrics noted above.


Here’s a simple customer-centric metrics framework to help you level-up your customer-centric outlook so you can focus obsessively on customer needs.


The most customer-centric companies measure three types of customer-centric metrics along the customer journey.


1) Behaviour - as in what are customers actually doing.


2) Sentiment - survey based metrics that surface customer perceptions.


3) Outcomes - the cold, hard facts about the value the customer is receiving.


If you’re not measuring at least one metric from each of these categories at key points in the customer journey, pick one that makes sense in your context and start today.


For robust metric definitions on these and other metrics, visit SaaSCan collaborator MetricHQ at www.Klipfolio.com/metrics.