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Using KPIs to Lead High Performing Customer Success

Paul ReevesVP, Customer Success

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GOAL

Within 20 minutes show you how to leverage KPIs to help your teams achieve goals faster and more effectively…

…so they’ll be seen for the valuable and effective professionals they are

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AGENDA

• An important question• Agree on language• Understanding the power of progress and challenging goals• Using KPIs to lead high performing teams, and develop

people• Choosing KPIs• Tips• Workshop for teams

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Which KPIs Do We Own/Influence?KPIs are used to assess and track health of a business

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1. MRR2. MRR Churn %3. CAC4. CLTV5. CLV:CAC6. Customer Churn Rate7. Customer Retention Rate8. NPS

But how do you use these to lead your teams?

Which KPIs Do We Own/Influence?KPIs are used to assess and track health of a business

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Common LanguageLet’s agree on a few basic definitions

Key Performance Indicator (KPI)

Metric

Lagging Indicator

Leading Indicator

A measurement of performance that is important for success.

A metric that is closely associated with a trend or outcome. New building permits, CSAT (tickets)

A standard for measuring; quantifiable value

A metric that is compiled and reflects a historical state. Unemployment rate, NPS

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Using Progress and Challenging GoalsPeople thrive when making progress on challenging goals

Small wins can be the foundation of a virtuous cycle of ongoing wins. Dr. Theresa Amabile

Challenging, ambitious goals create higher performance than easy goals.

Professor Edwin Locke

Let’s use challenging goals to help our team exceed expectations.

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Using KPIs in Challenging GoalsTranslate a KPI target into a challenging goal with milestones.

There can be numerous correct answers.

Step 1: Select one KPI (lagging indicator).Step 2: Create a challenging SMART goal for the

KPI. Step 3: Identify its leading indicators.

Step 4: Break down leading indicators into actionable behaviors that deliver small wins.

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Example Goal: Achieving NPS 50 this yearNPS has many contributing factors, here’s one design

Fast Onboarding % + Touch % + CSAT

CSAT= Response Time + Resolution Time

Design for small wins that are additive but individually significant.

Response Time = Answer an incoming question quickly (Small win)

Onboard quickly, touch all key contacts per a schedule, and provide fast/effective support.

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Leading TeamsUse KPIs to set standards and recognize achievers

President’s Club= 100% of renewal target

Onboarding Elite = 90% customer activation

Use visible signs of reward and status to develop culture of performance

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Developing Team MembersUse goals, outcomes, and KPIs in 1-on-1 meetings to discuss

commitments

Do some onboarding sessions

Train CS practitioners to think and use metrics to set and manage expectations internally and externally

Deliver 5 onboarding sessions this week

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Choosing KPIsWhere do you start?

Focus on a few not many

Must be easy to measure and report on

If you can’t easily measure something in a few minutes, it’s unlikely to be a key metric you want to use to measure performance*

Easily understood

Choose meaningful metrics that demonstrate value

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Tips for ManagersKPIs have to part of your everyday work life

Start team meetings by reviewing progress towards KPI targets

Include in 1-on-1 meetings

Post in prominent locations (monitors, reports)

Acknowledge achievers

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Tips for High AchieversDon’t’ wait for your manager to suggest goal setting

Create 1 or 2 challenging goals to pursue each quarter

Include progress updates in 1-on-1 meetings

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Team WorkshopIn a weekly team meeting or as part of special offsite, discuss and

align on KPIs and metrics.

Step 1: Identify important KPIs your team owns or supports.

Step 2: Select one KPI and break it down into leading indicators.

Step 3: List the behaviors and conditions needed to achieve target indicator.

Step 3. Prototype data capture.Step 4. Prototype report generation.

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Thank You

How to Measure Anything: Finding the Value of Intangibles in Business by Douglas Hubbard

The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work by Theresa Amabile, and Steven Kramer

SaaS Metrics: A Guide to Measuring and Improving What Matters by David Skok

Simple Example on Using KPIs by Neil Stoneman

Check Out These Sources

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DiscussionTime for open sharing

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APPENDIXDo these look familiar?

Productivity metrics:

o # tickets handled per period

o Average response time

o Average resolution time

o # customer quotes/feedback

Efficacy metrics:

o Customer satisfaction

o SLA compliance

o Average # touches/reopens

Productivity metrics:

o # interactions

(week/month/quarter)

o % of customers onboarded on

time

o # customer quotes/feedback

o % feature usage

Efficacy metrics:

o NPS

o Growth/renewal (% or $)

o % promoters / power users

SuccessSupport